On Friday, CEO Elon Musk said Tesla will remain a publicly traded company. Although most of the company’s shareholders would have remained with Tesla if they went private, the sentiment among all of them was “please don’t do this.” In a statement, Musk wrote:
“It’s apparent that most of Tesla’s existing shareholders believe we are better off as a public company. Additionally, a number of institutional shareholders have explained that they have internal compliance issues that limit how much they can invest in a private company. There is also no proven path for most retail investors to own shares if we were private.”
The move is a sudden change in course from this announcement three weeks ago, where he first announced that he was looking to take Tesla private. Shareholders advised him that if he were to go private, there will be a limit to how much they will be able to invest, due to internal compliance issues.
Musk officially announced the change on Twitter:
In talking to our public investors, most were supportive of optimizing for long-term value creation over quarterly earnings. This was also a factor in remaining public.
— Elon Musk (@elonmusk) August 25, 2018
Tesla will continue on its path forward to create products that people will love and will make the biggest change for life on Earth.