Elon Musk reconsiders: Tesla stays public
In an official blog post published on Tesla’s website, CEO Elon Musk said that Tesla stays public after all. The company went public in 2010, and Musk acknowledged that all the shareholders are “extremely important” to him. However, after talking to shareholders (large and small), Musk admits that they believe Tesla is better off as a public company.
After testing the waters, getting the pulse of shareholders and the market, Musk concludes that “there is more than enough funding to take Tesla private”. Still, after meeting with Tesla’s Board of Directors, the CEO decided that Tesla stays public. “The Board indicated that they agree“.
At the beginning of the month, Musk took it to Twitter that he was considering taking Tesla private. He also mentioned that funding was secured in order to do that at $420. The tweet rapidly generated shock waves and, especially when Musk mentioned the Saudi Arabian sovereign wealth fund as a possible source for the money. The CEO later added that shareholders who wanted to participate in a private Tesla could keep their shares. Those who would rather not would get $420 per share, which he said was already “a 20% premium over the ~$350 then current share price“. This, in turn, was also an approximate 16% increase due to the Q2 earnings announcement on August 1, 2018.
Am considering taking Tesla private at $420. Funding secured.
— Elon Musk (@elonmusk) August 7, 2018