Tesla CEO Elon Musk created confusion among his company’s investors and stakeholders a few weeks ago when he announced that he would take Tesla private. However, the CEO took back his wish of seeing Tesla private. On August 24, Musk intimated his response to the world via a blog post on his company’s website.
Before, Tesla CEO said that the investors willing to continue forward with the company’s plans of going private could buy shares at a fixed price of $420. This move did not become very popular among the masses and most of the shareholders started having double thoughts on Tesla’s future.
The reason behind the move to go private was to prevent the share price fluctuations caused by a volatile market. Elon believed the private Tesla would be able to achieve its goals faster, without fear of any repercussions. The Tesla board of directors met Elon in this regard on Aug 23 and sealed their decisions regarding the future of the company. Six of the nine board members gave a statement that Elon Musk has agreed to keep the company public.
Initially, the CEO became under fire from the Securities Commission regarding the share price as it was speculated that Elon was using unfair means to inflate his company’s share price and market value.