Elon Musk changed his mind to turn Tesla into a private company

He was convinced by the shareholders, although Musk himself continues to consider the idea to be feasible.

The head of Tesla, Ilon Musk, said that he abandoned the idea of ​​buying a company from the exchange and transfer it to private status. This happened after Musk talked to the shareholders: some of them explained to him that they had institutional restrictions on the volume of investments in private capital.

According to the entrepreneur, in the case of Tesla’s transfer to private status (and now the company is trading on the exchange and its cost depends on many external factors), most small investors would not have a clear opportunity to invest in the company. The best solution at the moment is to leave Tesla a public company, focus on profit and release of Model 3, Musk said.

I knew that the process of transferring the company to the private would be difficult, but it became clear that it would be even longer and distracting than expected originally. This is a problem, because we definitely need to focus on the production of Model 3 and make a profit. We will not reach our mission of the development of sustainable energy, if it is not financially stable.

Ilon Musk

Prior to this, Musk announced that he found funding at the sovereign welfare fund of Saudi Arabia, but there were no final agreements.

VC.ru Musk changed his mind to buy Tesla stocks from the exchange after ... “The shareholders would support us, but their mood was in the spirit of“ Please do not do this ”, -...

Musk voiced his desire to make Tesla a private company on August 7 on Twitter, after which the shares have grown slightly. However, subsequently, the intention caused a bewilderment of the US Securities Commission (actually such things are not done through Twitter), and several shareholders who played on Tesla’s shares for a decrease were filed with a mask to the court.

#business #MASK #TESLA