Tesla will remain a publicly traded company, CEO and chairman Elon Musk said late Friday, just weeks after he floated the idea of going private in order to ward off short-sellers and volatility in the company’s stock.
In early August, Musk touched off a firestorm by saying on Twitter that he was considering taking Tesla private at $420 per share, adding that funding was “secured.” In the wake of that announcement, Musk has been buffeted by skepticism, and faced the threat of a regulatory probe.
In an official public announcement on Tesla’s website, Musk said he’d abandoned the notion of taking the company private due to shareholder resistance, and logistical hurdles that rendered the proposition unattractive.
Musk also informed his employees of the change of plans on Friday night with an e-mail. Stock options are part of Tesla’s standard compensation offering to its employees:
From: Elon Musk
To: Everybody
Subj. Staying Public
8:34 p.m.
After giving this a lot of thought, I have come to the conclusion that the best path for the foreseeable future is for Tesla to remain a public company.
There are certainly a number of very compelling reasons to go private, so this is far from an obvious decision, but, on balance, being public appears to best serve the interests of the people of Tesla and those who have invested in our future.
Thanks for being awesome,
Elon
– Javier David contributed reporting.
