Tesla CEO, Elon Musk has officially announced through his blog post that the company will continue to remain public. In early August, Musk has shocked everyone, including his own shareholders, with a simple tweet, which said - "Am considering taking Tesla private at $420. Funding secured." This welcomed a lot of debate regarding the investment and the company's future, and also a federal investigation against Musk's attempt to take Tesla private. However, now, Elon Musk says that Tesla shareholders have convinced him to keep the company public.
Also Read: Investors Query Funding Costs At A Private Tesla
Elon Musk said that back when he made the announcement about considering taking Tesla private, it was also "important to understand whether our current investors believed this would be a good strategic move." The Tesla CEO wanted to know whether the shareholders were open to participating in a private Tesla. Having said that, after great deliberation with his investors, Musk has been given a feedback that "most of Tesla's existing shareholders believe we are better off as a public company." In fact, several of the company's institutional shareholders have told Musk that their internal compliance issues limit them on how much they can invest in a private company.
Also Read: Tesla Board To Evaluate Elon Musk Proposal To Go Private
From this discussion with the company's shareholders Musk also realised that, at this point, the challenging process of going private "would be even more time-consuming and distracting than initially anticipated." Even as he let go of his plan to take the company private, Musk said, "My belief that there is more than enough funding to take Tesla private was reinforced during this process." He further added, "After considering all of these factors, I met with Tesla's Board of Directors yesterday and let them know that I believe the better path is for Tesla to remain public. The Board indicated that they agree."
Musk says that moving forward, the company's focus is to increase the sale and production of Model 3 and make the company profitable and make products that people love, and that make a difference to the shared future of life on Earth.
