Tesla is not going to be private anyway.
In a statement late on Friday night, Elon Musk, the chief executive of the electric car maker, said that he and the company's management had decided that they would not turn Tesla into a private company.
The movement stops a process that Mr. Musk was set in motion in a Twitter message on 7 August. The turnaround is the last revolution for the company, struggling with production challenges for its first mass car, the Model 3.
"I knew that the process of going private would be a challenge, but it is clear that it would be even more time-consuming and distracting than initially expected," Musk wrote in a statement that Tesla was shortly after 11:00 on the company's blog placed.
"After looking at all of these factors, yesterday I met with Tesla's board and informed them that I think it's better for Tesla to stay public," he said.
"Elon has informed the board that, after doing this work and considering all factors, it believes it is better not to pursue a transaction for the private taking of Tesla," said the directors in the statement.
They also confirmed their support for the leadership of Mr. Musk. "The board and the entire company remain focused on ensuring the operational success of Tesla," they said, "and we fully support Elon while continuing to lead the company."
The six directors – James Murdoch, Antonio Gracias, Robyn Denholm, Brad Buss, Ira Ehrenpreis and Linda Johnson Rice – served in a special committee to evaluate the prospect of private Tesla taking. Their statement said that the committee had been dissolved.
A spokesperson for Tesla refused to comment on Friday evening on what Mr Musk and the board members said in their statements.
Mr. Musk's announcement on August 7 that he considered taking the company privately was so astonishing that investors stopped pending a fuller explanation. Tesla's share eventually climbed to about $ 380, but it closed Friday at $ 322.82 – much less than the $ 420 price that, according to Musk, would be paid to those surrendering shares in the transaction.
His first tweet, made without warning his board, said he had been credited & # 39 ;, but it turned out to be far less certain. What followed was a two-week whirlwind in which Mr. Musk was confronted with questions from the Securities and Exchange Commission and the dismay of his own directors.
Mr Musk further explained his thinking a letter to employees, a blog post and an emotional interview with The New York Times. He expressed frustration about the demands of a government company, including the quarterly reports that, according to him, stimulated short-term thinking.
But in the Friday blog post he said that, given the feedback he had received, "it is clear that most of Tesla's existing shareholders believe we are better off as a public company."
He continued: "In addition, a number of institutional shareholders have stated that they have internal compliance issues that limit how much they can invest in a private company."
On August 14, the company announced that the board had set up a special commission to review Mr. Musk's proposal, and stressed that it & # 39; no guarantees & # 39; could indicate that it would be accepted.
Musk wrote Friday that "although the majority of the shareholders I spoke to said that they would stay with Tesla if we were going to be private, the sentiment was, in a nutshell," please do not do this "."
Mr. Musk is the largest single shareholder of Tesla and owns nearly 20 percent of the company.
In the Times interview he said that he was physically exhausted and used sleeping pills in the past year, while he sometimes worked 100 hours or more per week.
Directors have the Mr. Musk told to curb his Twitter use, according to people familiar with the issue.
Mr Musk's statement that Tesla would remain public was announced on Twitter by the official company account. There was no immediate activity on the personal account of the chief executive, which he had used to reveal his thoughts about private going and has regularly worked to spar with critics and investors who have wagered against Tesla, known as shorts.
In his statement Mr. Musk pointed out discussions with Tesla shareholders and hastily recruited advisors about the deal – investment banks Goldman Sachs and Morgan Stanley, as well as Silver Lake, a technology investment company – prompted him to take the idea of his car company private.
He also noted that for most individual investors there was "no proven path" to stay with the company if it became a private matter. Mr. Musk wrote that he continued to believe that "there are more than enough financial means to take Tesla privately", although he has not indicated to the company where the money would come from.
The decision to remain in the possession of the government may resolve the most burning issue for Mr Musk and Tesla, but many others continue to pursue them.
The company has never reported annual profits since its inception in 2003. Tesla aims to produce at least 5,000 model 3 sedans per week, the level at which it can make a profit, said Mr Musk. It has said that it has reached that level in recent weeks, although it has taken a number of extreme measures to do so.
The company has run the assembly line all day long. It has also built a third production line in one gigantic tent outside the walls of his car factory in Fremont, California – a tactic most car production experts have never seen before.
Jacey Fortin contributed to the reporting.