Tesla Inc Chief Executive Elon Musk said late on Friday he would heed shareholder concerns and no longer pursue a $72 billion deal to take the luxury electric vehicle maker private, abandoning an idea that stunned investors and drew regulatory scrutiny.
He said he had told Tesla's board "that I believe the better path is for Tesla to remain public".
Musk wrote that the company "must stay focused on ramping (up the) Model 3 and becoming profitable".
Musk hasn't taken to Twitter to add anything to his statement, yet. Delving into Elon's post, it's quite clear that despite being in many respects a captain of industry, there is a surprising amount about the financial aspects of running a company which the man simply doesn't understand, not least among them the fact that some things can land you in hot water if you don't listen to (or even consult) your advisors who are there to protect both you and the company.
According to reports, Tesla's six board members revealed in a statement that plans to take Tesla private were scrapped after Elon considered all factors and came to believe that going private was not viable and communicated the same to the board.
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There are certainly a number of very compelling reasons to go private, so this is far from an obvious decision, but, on balance, being public appears to best serve the interests of Tesla and those who have invested in our future. "Although the majority of shareholders I spoke to said they would remain with Tesla if we went private, the sentiment, in a nutshell, was 'please don't do this, '" he wrote.
Musk described the infamous privatisation tweet - which included an assurance that funding for going private was secured - as an attempt to be transparent.
"Prior to the go-private episode, his credibility was in question, although investors still had overall confidence in the guy", Erik Gordon, a business and law professor at the University of MI, said Saturday.
Musk thanked his investors, customer, and employees and expressed gratitude for their loyalty and support.
The outlet reports that the SEC also homed in on Musk's comment that he already had "funding secured" to take Tesla private, which prompted some of the company's board of directors to retain lawyers in case there was an SEC inquiry. "This whole go-private episode has taken his credibility close to zero". But the shares have fallen more than 20 per cent since. "We've shown that we can make great sustainable energy products, and we now need to show that we can be sustainably profitable", wrote the sustainable energy pioneer.
Musk continued: "With all the progress we've made on Model 3, we're positioned to do this, and that's what the team and I are going to be putting all of our efforts toward". We will not achieve our mission of advancing sustainable energy unless we are also financially sustainable. He announced late Friday that Tesla would remain a publicly traded company.