However, the CEO of Tesla revealed yesterday that Tesla will not be privatized. This announcement comes three weeks after Elon Musk reveals through a post on his Twitter account. He revealed that he was considering privatizing the electric car manufacturer.
This erratic decision of Musk ended up causing great discomfort between the members of the management and its shareholders. According to Elon Musk, after investigating in depth the whole process of privatization and several meetings with his management, it was decided that the best way for Tesla would be to remain a public company.
Elon Musk reveals in the article published on Tesla’s official blog that the vast majority of the company’s shareholders believe the right path to follow is to remain a public company. Further explaining that several of the institutions that are part of its vast list of shareholders would face large limits on the amount that could be invested in Tesla if it were privatized.
Elon Musk finally confirms that Tesla will not be privatized
The CEO also revealed that despite the vast majority of shareholders he spoke to, they confirmed that they would remain faithful to the company even if it were privatized. However, Musk said it was impossible not to feel the “request” not to make that decision.
As in all companies, the meager privatization process consumes a lot of time and resources. But apparently, in the case of Tesla, the whole process would consume much more time than anticipated by Elon Musk.
At a time when the company is going through a bad financial time, Elon Musk eventually recognized the company’s priorities. All features and focus should remain centered on the recent launch of its Tesla Model 3. That may prove to be imperative for the financial sector of the company.
After just over 2 weeks of great “stirring”, it seems that the situation should start slowly to calm down. However, all the rumors and news about Elon Musk’s possible personal problems seem to be far from over.