Tesla will remain a public company, CEO Elon Musk said Friday night, less than three weeks after he announced to the world via Twitter that he was considering taking the electric automaker private at $420 a share.
Musk, who posted the announcement via Tesla’s blog, said Friday that after speaking with shareholders and investigating the process of taking the company private he believes the better path is for Tesla to remain public. Musk met with Tesla’s board of directors Thursday and told him his decision. The board agreed, he wrote.
Here’s an excerpt:
Given the feedback I’ve received, it’s apparent that most of Tesla’s existing shareholders believe we are better off as a public company. Additionally, 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 retail investors to own shares if we were private. 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.”
I knew the process of going private would be challenging, but it’s clear that it would be even more time-consuming and distracting than initially anticipated. This is a problem because we absolutely must stay focused on ramping Model 3 and becoming profitable. We will not achieve our mission of advancing sustainable energy unless we are also financially sustainable.
That said, my belief that there is more than enough funding to take Tesla private was reinforced during this process.
Friday night’s announcement closes a tumultuous 17 days that began with Musk tweeting that he secured funding and was considering taking Tesla private. The tweet wasn’t warmly embraced by the Tesla board or many shareholders. It also prompted the U.S. Securities and Exchange Commission to investigate.