Elon Musk gave us a bit of a shock earlier this month when he announced on Twitter that he was thinking about making the company private, with a stock price of US $ 420. However, it did not take long. Earlier today he issued a statement stating that it is not really going to happen.
Posted on the Tesla Blog, the announcement by states that Musk's decision to keep the business private is based on feedback from shareholders.
He went on to say that institutional shareholders explained to him that they have internal compliance rules that would limit the amount they could invest if Tesla would go private.
"Although the majority of the shareholders I spoke to said they would stay with Tesla if we would go private, the sentiment was, in a nutshell," please do not do this ""
"After considering these factors, I met yesterday with the board of directors of Tesla and let them know that I think it's better for Tesla to stay public." The board has indicated that they agree, "Musk said.
Will this usher in a new era where the founder of Tesla might do some research or discuss things with his investors and get on board before he tweet? Who knows, but guessing is what makes it fun, right?
Consider taking Tesla private for $ 420. Financing secured.
– Elon Musk (@ononmusk) 7 August 2018
Musk also states that making the business private would be more time-consuming and "distracting" than he initially thought, and that the emphasis should remain on delivering the Model 3 and making the company profitable.
Given that recently it was reported that the CEO regularly draws 120 hours of work weeks, perhaps the best he does not add to the tax.
What remains from the statement is the shareholder complaints that were filed earlier this month. It stated that the original US $ 420 tweet was intended to raise prices, which would have a negative impact on short sellers who gamble against Tesla.
And although we can not comment on the truth of this accusation, the Tesla share has increased by 11 percent within minutes after the tweet went live. It declined relatively quickly to 7 percent, but I can see the logic of the shareholder here.
Musk has not yet been on Twitter to add something to his statement. Until now, he has only reconstructed the announcement of the Tesla account.
– Tesla (@Tesla) August 25, 2018
Here is the complete statement:
Earlier this month I announced that I was considering taking Tesla privately. As part of the process, it was important to understand whether our current investors believed this would be a good strategic move and whether they would like to participate in a private Tesla.
Our investors are extremely important to me. Almost all of them stayed with us from the moment we went public in 2010, when we had no cars in production and only a picture of what we wanted to be. They strongly believe in our mission to promote sustainable energy and to dedicate ourselves to our success.
I have worked with Silver Lake, Goldman Sachs and Morgan Stanley, who have world-class expertise in this area, to consider the many factors that play a role in taking Tesla private, and all the incoming interest we have received from investors to finance a go-private transaction. I also spent a lot of time listening to the current shareholders, big and small, to understand what they think are the best long-term interests of Tesla.
On the basis of all the discussions that have taken place in recent weeks and a thorough consideration of what is best for the company, a few things are clear to me:
Given the feedback that I received, it is clear that most existing Tesla shareholders think we are better off as a public company. In addition, 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 private investors to own shares if we were private. Although the majority of the shareholders I spoke to said that they would stay with Tesla if we would go private, the sentiment was in a nutshell: "Please do not do this".
I knew that the process of private life would be a challenge, but it is clear that it would be even more time-consuming and distracting than initially expected. This is a problem, because we must remain absolutely focused on driving up Model 3 and become profitable. We will only achieve our mission of promoting sustainable energy if we are also financially sustainable.
Having said that, my belief that there are more than enough resources to take Tesla privately was reinforced during this process.
After looking at all these factors, yesterday I met with the Board of Directors of Tesla and let them know that I think it is better for Tesla to remain public. The board has agreed to agree.
In the future we will continue to concentrate on what matters most: building products that people love and that make a difference to the shared future of life on earth. We have shown that we can make great renewable energy products and we must now show that we can be profitable in a sustainable way. With all the progress we have made on Model 3, we are able to do this, and that is where the team and I will focus our efforts.
Thank you to all our investors, customers and employees for the support you have given our company. I am incredibly excited to continue to lead Tesla as a public company. It is a privilege.
If there is nothing else, this latest Musk news is a temporary derivation of everything that is going on between him, Azealia Banks and Grimes.
Elon Musk sent that 420 pair during a ride in a model S
The New York Times yesterday met with Tesla CEO Elon Musk for an interview and revealed, well, a lot. One of the things we learn. Musk recognizes the taking of Ambien, he sent his 420 tweet during a ride to the airport, he will not stop as CEO, some members of the Tesla board want him to stop tweeting, and he almost missed the marriage of his brother for work. Musk seems utterly stressed.
Elon Musk explains why he stopped using Instagram: & # 39; I Did not Like It & # 39;
It seems that Tesla founder and torture of workaholic Elon Musk has removed his Instagram account.
"Finally!" You might say, if you've followed the controversial behavior of the 47-year-old on social media lately. "But wait a minute, you have to give me back my phone!" Azealia Banks might say, because she demanded that Musk return the device at the same time that he raged his Instagram. "What is happening on earth?" Will certainly ask all others.