Tesla CEO Elon Musk has said that he would no longer pursue a USD 72 billion deal to take the company private, an idea that had shocked investors and attracted scrutiny by authorities, Reuters reports.
In early August, Musk tweeted that he was considering taking Tesla private at USD 420 per share. The decision to continue as a publicly listed company, however, still raises concerns about its future as shares have been down since Musk’s take-private suggestion.
The company and the CEO are also facing a series of investor lawsuits and a SEC investigation caused by Musk’s tweet that claimed funding for the private deal was “secured.”
Musk said he abandoned the idea of taking Tesla private due to the negative feedback he got from shareholders and because the effort was proving to be more time-consuming and distracting than anticipated.
“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,’” Musk, who owns about a fifth of the company, wrote in a blog post. He added that a number of institutional shareholders explained that they have internal compliance issues that limit how much they can invest in a private company, and that there was no proven path for most retail investors to own shares were Tesla to go private.