Tesla will eventually not be privatized. Elon Musk explains why

Elon Musk published a few hours ago on the official blog of Tesla that the company is still open to the public. Why did he change his mind?

On August 7, Elon Musk tweet wrote that he was considering taking Tesla in private possession with the necessary capital. This of course caused a huge stir. The reasons we find in our next article are logical. He explains, however, why he will not privatize the company.

Elon firstly states that it was important to find out whether the current Tesla investors considered a possible transformation to a private company as a good strategic step. In addition, he consulted with the world's leading companies such as Goldman Sachs, Morgan Stanley and Silver Lake, who have a great experience in this area.

Source: automotive.com

On the basis of all the discussions he has had during the past few weeks, he has learned a number of important things:

  • Most shareholders believe that Tesla is better than a public company. Several of them said they had a problem with investment restrictions that would bring the transformation to a private company. On the other hand, most shareholders said they would remain in Tesla even after privatization, although they were not fully identified.
  • Although he was aware of the complexity of such a transformation, it would be much more demanding and worrying than expected. That is why Tesla can not afford to make it profitable and financially stable, with an emphasis on increasing Tesla Model 3 production.
  • Musk's belief that Tesla could get enough capital to turn it into a private company was confirmed.

"After considering all these factors, I said to the Tesla Board meeting yesterday that I believe that it is better for society to remain public. And the right advice agreed, "Musk added.

Source: Elon Musk via tesla.com, title photo: Tesla

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