Tesla Inc. will remain a public company, and Chief Executive Elon Musk intends to stay in charge, Musk announced late Friday night.
“Given the feedback I’ve received, it’s apparent that most of Tesla’s existing shareholders believe we are better off as a public company,” Musk wrote in a Tesla blog post. “I knew the process of going private would be challenging, but it’s clear that it would be even more time-consuming and distracting than initially anticipated.
“After considering all of these factors, I met with Tesla’s board of directors yesterday and let them know that I believe the better path is for Tesla to remain public. The board indicated that they agree.”
Musk stunned Wall Street on Aug. 7 with a tweet that said he was considering taking Tesla TSLA, +0.85% private at $420 a share, with “funding secured,” a move that has reportedly sparked an investigation by the Securities and Exchange Commission.
In his blog post, Musk said “my belief that there is more than enough funding to take Tesla private was reinforced during this process.”
A committee of Tesla board members built to explore privatization issued a statement that confirmed Musk’s post, and said the board supported Musk’s continued stewardship of the company.
“The board and the entire company remain focused on ensuring Tesla’s operational success, and we fully support Elon as he continues to lead the company moving forward,” it read.
At the end of his post, Musk also said that he intends to continue running Tesla amid a potential SEC investigation into his actions.
“I’m incredibly excited to continue leading Tesla as a public company,” Musk said in closing. “It is a privilege.”
After the blog post hit just before midnight Eastern on Friday night in a New York Times story, Musk did not tweet about it. He instead tweeted about his rocket company, SpaceX, and hyperloops.
This time, the vacuum tunnel will be a bit longer & SpaceX will provide some advance funding for student teams with most promising designs. Bonus award for all race pods that exceed half the speed of sound! https://t.co/YucnsV3hiA
— Elon Musk (@elonmusk) August 25, 2018
Tesla stock soared 11% to $379.57 on the day Musk tweeted about his plan, but closed Friday at $322.82 for a market capitalization of $55 billion.