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Tesla to Remain Public, Confirms CEO in a Blog Post
Taking a U-turn from his own statement, Tesla CEO Elon Musk confirmed on Friday through a blog post that Tesla would remain public. A few weeks ago, he only suggested that he would take the electric carmaker private.
In his statement, CEO Elon Musk said that his decision is on the backdrop of feedback from shareholders which also include institutional investors. He said that the shareholders said that the internal rules limit them on how much they can float into a private company.
In his blog post, Musk wrote that he met the board of directors on Thursday and informed them that “I believe the better path is for Tesla to remain public.” He further wrote, to which the board indicated that they agree.
Full Blog of Elon Musk can be read on https://www.tesla.com/blog/staying-public
Notably, Musk posted on Twitter on August 7, that he was considering taking the company private. In his tweet, Musk said, with the company going private there would be no pressure of reporting the quarterly results. His tweet further read that funding had been secured for the deal but later it was denied saying that things are still to be worked out with Saudi Arabia’s Public Investment Fund.
Read Blog of Elon Musk which wrote on August 7, https://www.tesla.com/blog/taking-tesla-private?redirect=no
This tweet was written by Musk while he was driving to the airport. Apparently, soon after the tweet, U.S. Securities and Exchange Commission looked into the matter so as to find out whether this was intentional from Musk so that he could maneuver the share prices which have fallen down after his tweet.