Tesla CEO gives up on closing the capital – Business Season

Elon Musk (photo: Bill Pugliano / Getty Images)

Tesla CEO Elon Musk said on Friday that he would represent the interests of the shareholders and would no longer seek a deal of $ 72 billion to remove the maker of electric cars from the stock market.

The statement keeps Tesla as a listed company, but raises new questions about its future. The shares are traded below 7 August, when Musk on Twitter announced that it was considering giving Tesla a $ 420 share because investors wondered how that would boost Musk's ability to make the company profitable.

Musk and Tesla will have to defend themselves against a series of lawsuits against investors and an investigation by SEC-supervisor Musk, who tweeted that the financing for the terminated agreement is secured & # 39; used to be.

Musk said the day before that there were more than enough funds to make the company private, which was reinforced during the process. He wrote his decision to drop the offer on the response he received from the shareholders and on the efforts that proved much more time-consuming and worrying than he had expected.

"Although most of the shareholders I spoke to said they would stay with Tesla if we were to take the company out of the stock market, the sentiment was in a nutshell:" Please do not do this "," Musk wrote in his report.

Musk, owner of about one-fifth of Tesla, said earlier this month that it planned to delete the company without the standard method of a leveraged buy-out, with all other shareholders being withdrawn and the deal being made mainly with new debts. financed.

Instead, two-thirds of the company's shareholders preferred, according to their estimation, the & # 39; roles & # 39; their interests and investors remain in a closed company. This would significantly reduce the money needed for the business and avoid overloading Tesla, which has a debt of $ 11 billion and a negative cash flow.

Six members of Tesla's board said they had informed Thursday that Musk had left the demarcation lines.

One of the biggest challenges for Tesla is now to stimulate the production of its latest model 3 vehicle. Several bottlenecks at the Fremont plant and the battery factory in Nevada have delayed production.

Tesla now strives to consistently build 5,000 models per week, a goal that says it has reached "several times" since it was first hit in June.

Musk has repeatedly said since April that Tesla does not need to raise more capital and promises to be profitable in the third and fourth quarter. But analysts expect that Tesla will need billions of dollars in the coming years to finance ambitious expansion plans and develop new premium electric vehicles to meet German rivals.

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