After Tweeting out that Tesla would become a private company at $420 a share a few weeks back, Elon Musk has released an official statement outlining that it will remain public. Musk made the announcement Friday night via Tesla’s blog, deciding that the company will be better off public after a meeting on Thursday with his board of directors. Read an excerpt from his statement below.
Given the feedback I’ve received, it’s apparent that most of Tesla’s existing shareholders believe we are better off as a public company. Additionally, a number of institutional shareholders have explained that they have internal compliance issues that limit how much they can invest in a private company. There is also no proven path for most retail investors to own shares if we were private. Although the majority of shareholders I spoke to said they would remain with Tesla if we went private, the sentiment, in a nutshell, was “please don’t do this.”
I knew the process of going private would be challenging, but it’s clear that it would be even more time-consuming and distracting than initially anticipated. This is a problem because we absolutely must stay focused on ramping Model 3 and becoming profitable. We will not achieve our mission of advancing sustainable energy unless we are also financially sustainable.
That said, my belief that there is more than enough funding to take Tesla private was reinforced during this process.
When Musk first announced his desire to take Tesla private on August 7, the Tesla board of directors and shareholders did not take the news well, and the US Securities and Exchange Commission (SEC) reportedly sending subpoenas to Tesla following his tweets.
The news comes shortly after the Tesla CEO deleted his Instagram following a bizarre series of events that reportedly took place earlier this month. Rapper Azealia Banks claims that Musk originally tweeted about wanting to make Tesla private while he was on acid.
In related news, watch Elon Musk give an exclusive tour of the Tesla factory.