Tesla CEO Elon Musk has scrapped his plan to take Tesla in to a private entity. With this announcement, Musk ended weeks of speculation related to Tesla’s future and its structure. In a blog post published late Friday night, Musk said he had met with the board and “let them know that I believe the better path is for Tesla to remain public. The Board indicated that they agree.”
Musk’s August 7 tweet that he wanted to take the electric-car maker private at $420 a share and had “funding secured” sent the shares soaring before it became apparent he didn’t have financing lined up. The move attracted a notice from the US Securities and Exchange Commission. Musk’s erratic behaviour including his tearful interview with the New York Times was followed by calls for Tesla to hire a replacement chief operating officer.
“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,” wrote Musk. “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.’”