Elon Musk confirms that he is no longer taking Tesla public

Musk stated that the overall response to his thoughts about taking Tesla public “in a nutshell, was” something along the lines of “please don't do this”.

  • Published: August 26, 2018 10:49 AM IST

Tesla CEO and one of its founders’ Elon Musk has published a new post on the Tesla website informing everyone about the fact that the company will stay public. This new announcement comes weeks after Musk posted on the website about considering to take the company private. In the new post, he pointed out his rationale behind sharing his thoughts about the company private stating that he wanted to understand if current Tesla investors believed in a private Tesla and supported the strategic move. In what seems like a course correction measure, Musk stated that Tesla investors “are extremely important” to him.

He pointed out that “almost all” the investors “have stuck with” the company right from the time when the company went public back in 2010 when the company was not making any cars and instead, only had a vision of what it wanted to be. Musk added that he had worked with Goldman Sachs, Morgan Stanley, and Silver Lake to discuss and consider factors that would affect the company when he would take the company private. This included all the incoming interest for funding a “go-private transaction” along with listening to all the current shareholders of the company to understand their thoughts on what would be the best for Tesla in the long-term.

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Musk clarified that “most of” the current Tesla shareholders believe that staying public was best for the company in addition to institutional shareholders sharing their limitations in the amount they can invest because of internal compliance rules once Tesla goes private. He stated that the overall response “in a nutshell, was” something along the lines of “please don’t do this”.

He added that the entire process would have been “even more time-consuming and distracting” that what he initially anticipated taking his time away from focusing on scaling up Model 3 production. However, he maintained that his belief that there was “more than enough funding” to take the company private “was reinforced” in the conversations.

Elon met the Board of Directors to confirm that Tesla will remain public and the board agreed with the decision. He concluded the post by thanking all the Tesla investors, customers, and employees for the support. This came weeks after he initially posted his thoughts about taking the company private which lead to a subpoena from the Securities and Exchange Commission (SEC).

  • Published Date: August 26, 2018 10:49 AM IST