On Friday, August 24, Tesla’s CEO Elon Musk stated on the company’s site that Tesla will remain as a public entity as what was decided in a meeting with the investors of the institution.
Earlier this month, Elon Musk announced plans that Tesla was considering making the multinational company a private sector. In doing so, there are several entities that should be considered if a public company suddenly wants to go private.
The company needs to keep in mind what their current investors believe to be an optimal strategy, likewise if they are still willing to be investors in a private establishment.
Several questions will arise from the topic alone and influence what the company will aim to do.
Ever since the announcement of Tesla’s CEO Elon Musk that Tesla is considering becoming a private sector, the share price of the said company has dropped by 20%. The deflation and plunge of their share price are a sign that a lot of their investors are unsatisfied with the change that was supposed to come for Tesla.
Musk also spoke with their top shareholders and major bank partners to get their insights on their plan, but the majority of them always had the same thing to share, “please don’t do this”.
With all the negative comments and the price they had to pay to change the public company to private, Musk finally decided and concluded that the better path for Tesla is to remain as a public entity.
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