Elon Musk’s bid to go private with Tesla might just have failed

After so much drama at Tesla, the company will no longer be made private but remain public as it was initially

‘Tesla will remain a public company’, Elon Musk said in a blog post on the company website. He attributed the decision to shareholder sentiment. “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,’” as Musk describbed.

Musk said a number of co-partners such as Silver Lake, Goldman Sachs and Morgan Stanley advised on the possibility of going private. which he put into consideration, but however, 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. He also added that the process of exploring his options doubled up his belief that “there is more than enough funding to take Tesla private.” to think that he was only making a false awareness.

On August 7, Musk tweeted he was “considering taking Tesla private at $420.” A great deal of speculation followed, and the stock price fluctuated as a result. Musk has previously said — on more than one occasion, that he prefers private companies to public companies. But the path to going private wasn’t entirely clear; Musk wanted to keep his shareholders aboard though it wasn’t obvious how to structure such a transaction. Part of Musk’s motivation for staying public, he said in the post, was that his institutional shareholders had “compliance issues” when it came to investing in private companies.

Musk’s plan to go private 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. Well with all been said, Tesla will remain opened to public like it has been right from start.

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