Tesla is staying public at this time

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Most of Tesla’s existing shareholders believe Tesla is better off as a public company. Elon Musk is leaving Tesla as a private company for now.

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 [Elon] 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 [Elon] belief that there is more than enough funding to take Tesla private was reinforced during this process.

* After considering all of these factors, I [Elon] met with Tesla’s Board of Directors yesterday and let them know that I [Elon] believe the better path is for Tesla to remain public. The Board indicated that they agree.

15 thoughts on “Tesla is staying public at this time”

  3. It seems far more likely the board was resolutely opposed to taking the company private, the advantages of which remain being considerable.

  4. It seems far more likely the board was resolutely opposed to taking the company private the advantages of which remain being considerable.

  5. Here’s an article that explains the likely reason Musk wants to take Tesla private. Musk has used a large amount of his TSLA shares (~40%) as collateral for loans from Morgan Stanley and other institutions. If the TSLA share price drops to a certain level, even for just a few days, Musk will have to cover a margin call from the lenders. This could end up creating huge financial problems for both Musk and TSLA. If TSLA were private, Musk would not have to deal with market activity involving the company stock shares. https://www.inc.com/erik-sherman/1-reason-why-elon-musk-might-want-to-take-tesla-private-its-personal.html

  6. Here’s an article that explains the likely reason Musk wants to take Tesla private. Musk has used a large amount of his TSLA shares (~40{22800fc54956079738b58e74e4dcd846757aa319aad70fcf90c97a58f3119a12}) as collateral for loans from Morgan Stanley and other institutions. If the TSLA share price drops to a certain level even for just a few days Musk will have to cover a margin call from the lenders. This could end up creating huge financial problems for both Musk and TSLA. If TSLA were private Musk would not have to deal with market activity involving the company stock shares. https://www.inc.com/erik-sherman/1-reason-why-elon-musk-might-want-to-take-tesla-private-its-personal.html

  7. But Elon said it was going private..that the ‘funding was secured’. People made material investment decisions based upon this info. They got burned off of information conveyed to them by Tesla’s CEO that was patently false. If this isn’t securities fraud, what is?

  8. But Elon said it was going private..that the ‘funding was secured’. People made material investment decisions based upon this info. They got burned off of information conveyed to them by Tesla’s CEO that was patently false.If this isn’t securities fraud what is?

  11. ” If this isn’t securities fraud, what is? ” <-- Someone in that position saying something that is known by them to be untrue is securities fraud. Because it was always true the board had to approve it, if they don't that's that and the end of it, because they get to make that call " They got burned off of information conveyed to them by Tesla's CEO that was patently false. " <-- No, not so much as one word he said was false. Even if he had said at the time, "Tesla will go private at the November stockholder meeting. ", making a flat claim of it, that would not be a false statement even if it didn't, because as "forward looking" statements are defined in the actual laws and regulations of the SEC, they need only be plausibly believed by the person saying them to be merely wrong instead of "false". What was false was your claim that Musk ever made a 2nd tweet which retracted the first.

  12. But Elon said it was going private..that the ‘funding was secured’. People made material investment decisions based upon this info. They got burned off of information conveyed to them by Tesla’s CEO that was patently false.

    If this isn’t securities fraud, what is?

  13. Here’s an article that explains the likely reason Musk wants to take Tesla private. Musk has used a large amount of his TSLA shares (~40%) as collateral for loans from Morgan Stanley and other institutions. If the TSLA share price drops to a certain level, even for just a few days, Musk will have to cover a margin call from the lenders. This could end up creating huge financial problems for both Musk and TSLA. If TSLA were private, Musk would not have to deal with market activity involving the company stock shares.

    https://www.inc.com/erik-sherman/1-reason-why-elon-musk-might-want-to-take-tesla-private-its-personal.html

  15. ” There is also no proven path for most retail investors to own shares if we were private. ” <-- Then you have spoken to ignorant investors. Look at how Dell did it. Tesla hired the VP at Dell who orchestrated that.

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