In a blog post, dated, Friday, August 25th, Elon Musk, the CEO of the Automobile company, Tesla said that his company would continue to be publicly traded, only weeks after hinting that the electric carmaker would go private.
According to the eccentric and sometimes erratic CEO, he said that he took this decision based on feedback from shareholders, that includes institutional investors, who said they are bounded by internal rules that prevent them from investing generously in a private company.
In a meeting with Tesla’s board of directors on Thursday, August 24th, Musk went on to say “and let them know that I believe the better path is for Tesla to remain public.”
In the company blog post, Musk then wrote, “The Board indicated that they agree.”
Back on August 7th, Elon Musk posted on Twitter that he was looking to register Tesla as a private company in a bid to avoid the short-term pressures of reporting quarterly results.
According to his Tweet, it said that funding for the deal had already been secured, However later on the company said that it still had to work out details with Saudi Arabia’s Public Investment Fund.
Significantly the tweet, which was written by Musk while he was driving to an Airport, resulted in an inquiry by the U.S. Securities and Exchange Commission, which apparently suspects that Musk was attempting to manipulate the share price since it has fallen in recent times.
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