The board of Tesla said the company would remain public, following a tumultuous two weeks for the carmaker after its chief executive announced he was considering a deal to go private.
Six members of Tesla’s board of directors said in a brief statement issued that the board had held a meeting, in which CEO Elon Musk reported on the effort to take the electric vehicle company private.
“...After having done this work and considered all factors, he believes the better path is to no longer pursue a transaction for taking Tesla private,” the board members wrote. (Reporting By Alexandria Sage; Editing by Sam Holmes)
Musk wrote that while a majority of shareholders said they would remain with Tesla even if it went private, the sentiment in a nutshell was 'please don't do this'. Going private would have been more time-consuming and distracting than anticipated. Tesla will continue to focus on building products such as the Model 3 which Musk intends to ramp up and make profitable. And in order to achieve this, the company needs to be financially sustainable which is also the reason why the decision to keep Tesla public has been made.
— With inputs from ANI
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