This is unbelievable.
"First, a final decision has not yet been made, but the reason for doing this is all about creating the environment for Tesla to operate best," Musk said. "As a public company, we are subject to wild swings in our stock price that can be a major distraction for everyone working at Tesla, all of whom are shareholders."
Tesla shares rose 10% Tuesday to $377.39 per share. The stock remains 11% below Musk's $420 privatization level.
TheStreet says a private Tesla makes sense for at least three reasons:
- Musk has big dreams for Tesla, ranging from semi trucks to sports cars to giant battery factories. That expansion is best done not having to worry about the stock price.
- Musk likely realizes profits will remain elusive for Tesla, despite his assertions to the contrary.
- Musk also likely realizes he will need to raise money, again despite his assertions, to fund his big dreams.