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CEO Elon Musk: Tesla will remain a public company
In a blog post published Friday evening, Tesla CEO Elon Musk said that he would change course from his sudden announcement three weeks ago and would actually keep Tesla as a publicly-traded company.
"It's apparent that most of Tesla's existing shareholders believe we are better off as a public company," he wrote. "Additionally, a number of institutional shareholders have explained that they have internal compliance issues that limit how much they can invest in a private company. There is also no proven path for most retail investors to own shares if we were private."
Musk noted that he had met with the Tesla board of directors on Thursday and "let them know that I believe the better path is for Tesla to remain public. The board indicated that they agree."
See also: Analysis: Why Elon Musk abandoned his plan to take Tesla private
(Score: 1, Insightful) by Anonymous Coward on Sunday August 26 2018, @05:01PM (6 children)
Perhaps you missed the reply to "duh" [soylentnews.org], but it counters the thrust of your argument.
Why can't shareholders invest in his private company? Well, because the government doesn't allow them to do so; it's not being private that is the problem, but rather the government's restrictions on what people can do with their own damn money.
I'd much rather invest in a private Tesla that only reports annually (and privately) and is much less affected by short sellers. But I can't. Because I'm not rich enough, according to the government.
(Score: 2) by requerdanos on Sunday August 26 2018, @05:48PM (1 child)
I didn't miss that reply, and it was irrelevant with respect to my statements about the fact that "The pressure to sacrifice future growth and development in order to increase the coming quarterly results, even slightly, is probably a 'bad thing'".
In fact, that reply is about government restrictions on investing in private companies. I said Tesla should not be private because it "probably couldn't exist without investment from shareholders", something strengthened by a post pointing out that investment would be hindered were the company not public.
Did you read my post? Did you read your own?
(Score: 0) by Anonymous Coward on Sunday August 26 2018, @05:59PM
Elon wasn't wrong. The government is wrong. The government is the problem, not Elon's sense of what needs to be done.
(Score: 0) by Anonymous Coward on Sunday August 26 2018, @07:38PM (1 child)
Because that's not what going private means. There are plenty of ways of investing in private companies, they're just not as convenient as using an exchange to buy and sell small amounts of the company.
My dad is a part owner in a bar and the process of selling his share would be rather involved. As opposed to his investments in publicly traded companies which take a matter of minutes to go through the full process.
Companies are rarely willing to accept investors on such a small scale unless it's via stocks.
(Score: 0) by Anonymous Coward on Sunday August 26 2018, @08:15PM
That's what Elon is saying: "There is also no proven path for most retail investors to own shares if we were private."
(Score: 2) by bob_super on Monday August 27 2018, @06:06AM (1 child)
> but rather the government's restrictions on what people can do with their own damn money.
Maybe that's because the government grew tired of having to deal with the nasty side-effects when you have absolute freedom to give of take money against empty promises...
(Score: 0, Disagree) by Anonymous Coward on Monday August 27 2018, @03:37PM
Do you even government, bro?