WASHINGTON ¨C Tesla Inc. Chief Executive Officer Elon Musk¡¯s decision to abruptly abandon a plan to take his electric carmaker private will not resolve his mounting regulatory and legal woes, and may even make them worse, some securities lawyers said.
Explaining his reversal in a late-night blog post on Friday, the billionaire CEO said that taking the company private ¡°would be even more time-consuming and distracting than initially anticipated,¡± and that ¡°most of Tesla¡¯s existing shareholders believe we are better off as a public company.¡±
It was on Aug. 7 that Musk first surprised investors with his earlier plan, tweeting that he had ¡°funding secured¡± for a go-private deal that would have had a value of $72 billion. In a separate tweet, he wrote: ¡°Investor support is confirmed.¡±
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