Tesla’s Mission Is More Easily Accomplished as a Private Company
- This story is still developing, but here are our preliminary thoughts.
- Our guess is there is a 1 in 3 chance he can actually pull this off and bring Tesla private. The 16% premium to current share price may not be high enough to incentivize existing shareholders to support the sale.
- Musk does not want to run a public company. His mission for Tesla (to accelerate the globe’s adoption of sustainable energy) is both grand and long-term, making it difficult to accommodate investors quarterly expectations.
- He originally brought Tesla public in 2010, given he could no longer personally finance its growth, and has continually expressed his frustration with the company being public.
- Musk’s other endeavors, SpaceX and The Boring Company, are private.
- We do not see any legal risk in disseminating material information on Twitter due to the Reed Hastings Rule.
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