Elon Musk scrapped his plan for taking Tesla Inc. private, more than two weeks after blindsiding employees and investors with the idea via a bombshell tweet.
In a blog post published late Friday, the company’s chairman, CEO and largest shareholder said he had met with Tesla’s board of directors and “let them know that I believe the better path is for Tesla to remain public. The Board indicated that they agree.”
The decision is a stunning reversal after Musk shocked the financial world Aug. 7, tweeting that he wanted to take the electric-car maker private at $420 a share and had “funding secured.” In a subsequent blog post, he indicated that no such financing deal had been closed. The tweet has drawn a subpoena from the Securities and Exchange Commission, according to a person familiar with the matter.
“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,” wrote Musk.