Published on : Aug 27, 2018
As per experts, Elon Musk’s sudden abandoning of his plans to take Tesla private may do little to solve his legal and regulatory woes which seem to be rising by the day. On the contrary, it may make it worse for the electric car maker.
Elon Musk announced his decision in blog post published late at night. He explained in it how taking Tesla private would be an involved process that would consume both time and distract from core operations. Besides, he added that the current shareholders in the company think it’s better off as a public entity.
Earlier, on August 7, the Tesla CEO took investors by surprise by announcing that he had mopped up sufficient capital from the markets to now go private. He did so via his twitter platform. He explained that the value of the capital raised was almost US$72 billion.
In another tweet, Elon Musk wrote that support from investors is confirmed.
At present, both Musk and his company Tesla are lawsuits slapped by investors. Besides, a Securities and Exchange Commission based in the U.S. is also looking into the truth behind the tweets by Elon Musk. However, so far, SEC has refused to confirm it. Neither has any spokesperson from Tesla commented upon it.
Meanwhile, Musk has maintained that a deal was possible about taking Tesla private. But this may not help his company escape the gaze of the SEC and other regulatory woes that it is embroiled in already.