If Tesla's possible private status is the one you're worried about, it is not going to happen after all. Elon Musk, who is famously known for being the said company's chief executive, said last Friday that the board has decided not to turn Tesla into a privately owned company.
On a Twitter post last Aug. 7, Musk indicated a new move after the process was stopped. These changes in the company were inevitable disruptions, especially now, as they struggled with challenges in production, for its first marker car: Model 3. The 47-year-old shared his thoughts, saying he knew that going private would be a challenge.
Aside from being time-consuming, Musk added that it became more distracting than expected. "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," Musk said, which was also posted on Tesla's blog, according to The New York Times.
As he was able to consider several factors, he then met up with the company's board of directors and advised them the better path for Tesla is to remain public. Of course, such a decision would not be presented without further research done. The board of directors believed Musk reported with his and his advisers' efforts.
Tesla Won't Pursue Being a Private Company
Moreover, the board of directors also expressed how much they believed in Musk's leadership and they will continue to support him. At the moment, they will focus on the success of Tesla operations instead. Prior to this, the company had a special committee for talking Tesla private comprise of six directors namely: Antonio Gracias, Brad Buss, Ira Ehrenpreis, James Murdoch, Linda Johnson Rice, and Robyn Denholm.
However, it was reportedly dissolved after Musk's official statement. The company's spokesman remained silent as well. After the initial announcement of taking the company as private, the stock reportedly went up to $380 but closed to $322.82 on Friday. This is too low compared to $420 promised to those who will be surrendering their shares in the transaction.
His desire to make the company started with several concerns, like demands of operating as public, such as quarterly reports which incentivized shorter-term thinking. In the end, the majority of Tesla's shareholders believe they are better off being public.
Elon Musk is the biggest shareholder of the company, owning just fewer than 20 percent. He has been leading the company for a long time, which makes him work over 100 hours or more in a week and even taking sleeping pills.
