Earlier this month, Tesla’s CEO Elon Musk announced that he was considering taking Tesla private. However, after many considerations, he announced on Friday that he was no longer seeking for it. Actually, he was first announced the speculation on Twitter, and public received it in various ways. He said that many aspects influenced his decision to cancel the go-private proposal.

Why Elon Musk Cancel the Proposal to Take Tesla Private

Tesla’s CEO reported that he made the decision after considering various factors. He had some discussion sessions with the shareholders and financial advisors. They realized that few shareholders were interested in such a move. He also met with the Board of Directors to inform them that they would keep Tesla public. He reported that the Board agreed with the decision.

In addition, the company realized that the privatization idea had adversely affected Tesla shares. They fell down under $300 per shares just few days after Elon Musk sent Tweets about the proposal. Whereas, the prices were $380 per share on the day Musk announced the go-private proposal.

Since the announcement, Musk had to deal with many questions. Securities and Exchange Commission (SEC) questioned his proposal to take Tesla private. Similarly, many people requested for a number of details on social media. Hw SEC wanted to know what Musk really meant with his proposal, i.e. whether he sought to hurt short sellers.

The SEO also confessed that investors are extremely important for the business. While the company failed to produced any car in 2010, the investors kept their trust upon the mission to develop sustainable and energy-efficient product. They care very deeply about the company. Of course, Elon Musk could not take the risks of losing the loyal investors. Canceling the go-private proposal is a wise decision, hopefully.

Motives behind Go-Private Proposal by Elon Musk

Elon Musk denied funding issues behind the go-private proposal. Instead, it was driven by professional problems. The company has been under pressure to mass-produce Model 3 sedan. He also confessed personal pressures, which require him to work 120 hour per week. He hardly had time for his personal life and for his kids and friends. Sometimes, he even did not leave the office for 3 to 4 days. Such a working schedule has taken much energy and time.

After deciding to cancel the go-private proposal, Elon Musk made it clear that he was ready to move forward. He would focus on the company’s main target, namely, to build great products. He also stated that the company would take some strategic steps to make a difference in the way it maintains the Earth for the next generations. Tesla has high commitment to build sustainable energy products.

He is optimistic that the company can still be profitable while maintaining the environmental sustainability. Indeed, more and more people are increasingly aware of the environment issues. Therefore, many people now prefer environmentally sustainable products. He is optimistic that Mode; 3 sedan will be one of the long-awaited answers. Therefore, they will put all of their efforts toward finishing the projects as soon as possible.