Tesla will Remain Public – Elon Musk takes a U-Turn
On August 7, 2018, Elon Musk, who has over 22.3 Million followers, announced that he is planning to take Tesla Inc. Private. After this tweet, Tesla has come under scrutiny over this issues. Cathie Wood, the Founder, and CEO of ARK Invest is very bullish on the future of Tesla’s share price. She thinks that the face value of Tesla’s share could touch the figure of $4000 in a few Years from the current position. This amount is 10 times more than the current share price of Tesla Inc., which is $320.
Cathie Wood cautions Elon musk against taking Tesla Inc. private. In an Open Letter to Elon Musk, she suggested to him not taking Tesla Private. She believes that per share price won’t be able to reach the highs of $4000 by any means. Probably, this transition would even steal the chance from investors to be part of Tesla success. She is only trying to safeguard the interests of Tesla’s investors. According to her, if Tesla goes private, then its share price will remain undervalued. Hence, investors will not receive any return on their investments in accordance with their expectations of Tesla Inc.
In response to a very thoughtful letter by Cathie Wood, Elon Musk thanked her. After his tweet, he also received feedback from his investors, suggesting that it’s better to be a public company than a private company. Tesla must take its current investors’ opinions into consideration before making any bold decision. Later, CEO Elon Musk announced on late Friday that Tesla is a public-traded company and will remain public to protect the interests of its shareholders.
He candidly accepted that going private will be challenging and time-consuming, and hence, he wants to stay focused on increasing the production of Model 3 and earn profits for the growth of each and every shareholder who is associated with Tesla Inc.