In a blog post Elon musk confirmed that Tesla won’t go private. The decision was taken after considering the sentiments of share holders. “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.
The decision is a stunning reversal after Musk shocked the financial world Aug. 7, tweeting that he wanted to take the electric-car maker private at $420 a share and had “funding secured.” In a subsequent blog post, he indicated that no such financing deal had been closed.
He described the process of taking Tesla private as “even more time-consuming and distracting than initially anticipated.” That would serve as a distraction from increasing production on the Model 3, which is part of Musk’s plan for Tesla to become profitable.
Musk’s go-private plan didn’t just cause consternation among his shareholders — it also interested the Securities and Exchange Commission, according to The New York Times. “is ramping up an investigation about whether he misled investors and violated federal securities laws,” The Times reported earlier today. Previous reporting in The Wall Street Journal suggested that the SEC was already investigating Tesla for possibly misleading investors about its Model 3 production. Tesla faces at least three investor lawsuits that accuse Musk’s August 7 tweet of being market manipulation.
The decision to remain publicly owned resolves perhaps the most burning issue for Mr. Musk and Tesla, but many others continue to dog them. The company has never reported an annual profit since its founding in 2003. Tesla has been striving to produce at least 5,000 Model 3 sedans a week, the level at which it can turn a profit, according to Mr. Musk. It has said it reached that level in recent weeks, although it has taken some extreme measures to do so.