Musk considers taking Tesla private

August 9, 2018

Tesla—which has evolved from an audacious and aggressive Silicon Valley electric-car manufacturer founded in 2003 to a $63 billion colossus just eight years after going public—could be reversing course to go private.

A final decision has not yet been made, Chief Executive Elon Musk told his employees in an August 7 email posted on the company’s official website.

As a public company,” Musk wrote, “we are subject to wild swings in our stock price that can be a major distraction for everyone working at Tesla, all of whom are shareholders. Being public also subjects us to the quarterly earnings cycle that puts enormous pressure on Tesla to make decisions that may be right for a given quarter, but not necessarily right for the long-term. Finally, as the most shorted stock in the history of the stock market; being public means that there are large numbers of people who have the incentive to attack the company. “

Basically, he said, “I’m trying to accomplish an outcome where Tesla can operate at its best, free from as much distraction and short-term thinking as possible, and where there is as little change for all of our investors, including all of our employees, as possible.

Musk envisions that being private would mean four things for “all shareholders, including employees”—among them:

Musk ended the email on a positive note, with no timeline for the decision or the final move. “This proposal to go private would ultimately be finalized through a vote of our shareholders. If the process ends the way I expect it will, a private Tesla would ultimately be an enormous opportunity for all of us. Either way, the future is very bright and we’ll keep fighting to achieve our mission,” he stated.

Research contact: Press@tesla.com

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