Elon Musk, the iconic founder and CEO of Tesla and SpaceX has expressed desires to take the electric car maker private. Rather than announcing it in a regulatory disclosure, Musk tweeted about his feelings. Additionally, Tesla sent a detailed email to its employees to explain the motivation behind this decision. However, no further details were made public regarding the specifics of taking the company private. Investors reportedly backed the plan, which requires a shareholder vote. Musk also announced that the shareholders would be paid $420 per share, which is about a fifth more than the current price.
In the email, Musk said that going private again would be the best path forward as it would minimize the distractions that arise out of wild swings of their stock price. He also said that being public also subjects them to quarterly earnings cycle that puts enormous pressure on the company to make decisions that are right for the subsequent quarter, but not so for the long-term. He further added that since his company’s stock was the most shorted one in the history of the stock market, being public means that there are a large number of people who have the incentive to attack the company.
Tesla was founded in 2003 and went public in 2010. It achieved global reputation after the release of its first electric vehicles which were not only practical but also aesthetic.