Tesla to Stay Public Reveals Elon Musk in New Blog Post
After news made the rounds just this week that Tesla CEO Elon Musk was hiring financial giant Morgan Stanley to handle the firm's privatization move, the entrepreneur made another of his surprise announcements. This time, the entrepreneur took to his Tesla blog to say he was now deciding to stay public.
Staying Public https://t.co/gUrAnInBOu— Tesla (@Tesla) August 25, 2018
In a post appropriately entitled "Staying Public," the CEO outlined his reasons for the sudden change in his views. "Given the feedback I’ve received, it’s apparent that most of Tesla’s existing shareholders believe we are better off as a public company," wrote Musk.
Several influencing factors
However, stakeholder input was not the only influencing factor. Musk revealed "internal compliance issues" that limited how much institutional shareholders could invest in private firms and a lack of proven paths for retail investors to own shares.
"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," explained the CEO. He said his decision came after much deliberation with the bodies both educated on privatization matters and all those with a stake in Tesla.
"I worked with Silver Lake, Goldman Sachs and Morgan Stanley, who have world-class expertise in these matters, to consider the many factors that would come into play in taking Tesla private, and to process all the incoming interest that we received from investors to fund a go-private transaction. I also spent considerable time listening to current shareholders, large and small, to understand what they think would be in the best long-term interests of Tesla," Musk wrote.
The advancement of sustainable energy
The CEO also expressed his and his company's dedication to the difficult task of "advancing sustainable energy." In light of this goal, Musk said his and his team's time would be best served if it remained focused on ramping up Model 3 production to make the electric vehicle profitable.
Musk thanked his investors, customer, and employees and expressed gratitude for their loyalty and support. He finished the blog on a positive note sharing his firm's future aspirations.
"Moving forward, we will continue to focus on what matters most: building products that people love and that make a difference to the shared future of life on Earth. We’ve shown that we can make great sustainable energy products, and we now need to show that we can be sustainably profitable," wrote the sustainable energy pioneer.
This blog, just as his previous one where he shared publicly his up-to-then secret potential funder, painted a man whose decisions are well-thought out and considerate of those they might affect. Increasingly, the CEO is revealing himself to be a man dedicated to his firms and their stakeholders.
This was even illustrated in Musk's closing statements. "I'm incredibly excited to continue leading Tesla as a public company. It is a privilege," concluded the grateful CEO.
Via: Tesla blog