On Friday, Elon Musk said in a blog post on the company’s website that Tesla will remain a public company. He made this decision in less than three weeks after his announcement at Twitter that he was thinking to make automobile company private at a share of $420.
Musk spoke with the investors offer different opinions then came to a decision which he thinks is better for Tesla to remain a public company. He talked with Silver Lake, Goldman Sachs, and Morgan Stanley whether they can make Tesla private or not. Elon Musk later confirmed it as “even more time-consuming and distracting than initially anticipated.”
“Although the majority of shareholders I spoke to said they would remain with Tesla if we went private, the sentiment, in a nutshell, was ‘please don’t do this,” Musk wrote.
It would automatically disturb the production of Model 3 which was the main concern for the company at that time. Earlier this month, Musk tweeted about making Tesla private by giving a certain amount of share, but the path of making it private was not fully clear. Therefore, on Thursday Tesla board members, Brad Buss, Robyn Denholm, Ira Ehrenpreis, Antonio Gracias, Linda Johnson Rice, and James Murdoch released a statement which reads:
Over the past several weeks, we put in place a process led by a Special Committee of the Board to evaluate a proposal Elon was considering to take Tesla private. Yesterday, we held a Board meeting, during which Elon reported on the work he and his advisors have been doing in connection with this effort. Elon communicated to the Board that after having done this work and considered all factors, he believes the better path is to no longer pursue a transaction for taking Tesla private. After discussing this, we dissolved the Special Committee. The Board and the entire company remain focused on ensuring Tesla’s operational success, and we fully support Elon as he continues to lead the company moving forward.
Over this period, Tesla faces three investors lawsuits which accused Elon Musk to manipulate the market.