Elon Musk Wants To Take Tesla Private: Here’s Why

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If you pick up any list of the most impactful individuals who’d left an impact on the world, you will find that most of them are polymaths. Along the similar lines, Elon Musk has combined his knowledge of engineering, physics, programming, and business and created several multi-billion dollar companies.

From time to time, he makes big bets and surprises his competitors and fans. Just yesterday, he tweeted about his wish to take Tesla private.

Later, he released an email sent to Tesla employees. “Earlier today, I announced that I’m considering taking Tesla private at a price of $420/share,” he wrote.

It’s worth noting that a final decision hasn’t been made and Musk has tried his best to explain why he thinks that it’s the “best path forward.”

It isn’t hidden that all the publicly traded companies and their stock prices are frequently affected by multiple external factors and rumors. The companies like Tesla are also subjected to the earnings cycle, which restricts them from focusing on long-term strategies.

In the email, he compared Tesla’s operations to SpaceX, whose operations are apparently more efficient as compared to Tesla. “….that is largely due to the fact that it is privately held,” he added.

At the moment, Musk owns about 20% Tesla shares, and if he is really willing to go ahead on this path, he would need to deal with Telsa board and win the votes. He’d also need a considerable amount of financing to grab the rest of the shares.

He further hoped that all the current investors would remain in Telsa even when it becomes private.

Read the complete email here.

Also Read: A New “Tesla Mini Car” Is In Pipeline; Tweets Elon Musk
Adarsh Verma

Adarsh Verma

Fossbytes co-founder and an aspiring entrepreneur who keeps a close eye on open source, tech giants, and security. Get in touch with him by sending an email — [email protected]
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