What started with a series of tweets by Elon Musk with the notion of taking Tesla private, and the ensuing threats of litigation by shareholders is now over.
Musk would not be moving forward with the plan to take his company private, after all, citing shareholder resistance and logistical hurdles—when he announced that investors have convinced him that Tesla shouldn’t go private.
“Although the majority of shareholders I spoke to said they would remain with Tesla if we went private, the sentiment, in a nutshell, was ‘please don’t do this,’” Musk wrote in a blog article published on the company website.
So its done—Tesla will remain a public company. But how did we get here?
This all started a couple of weeks ago when Elon Musk, tweeted that he had “funding secured” and would consider taking his car company private at a price of $420 per share.
The tweet ended with two separate lawsuits filed against Tesla by investors claiming Musk’s online behavior violated federal securities laws and resulted in an SEC inquiry.
The SEC inquiry was opened shortly after Musk surprised investors with the tweet about going private. The agency reportedly has subpoenaed data from Tesla, indicating that a formal investigation has been opened.
Tesla has faced growing financial pressures this year as it works to build more of its Model 3 cars. Musk reportedly told the New York Times that he had an “excruciating” year leading Tesla.
Musk closed out his blog post by saying “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. With all the progress we’ve made on Model 3, we’re positioned to do this, and that’s what the team and I are going to be putting all of our efforts toward.”