In a Bloomberg report following the tweet, the publication quoted Musk as having said in 2015, "There's a lot of noise that surrounds a public company and people are constantly commenting on the share price and value.Being public definitely increases the management overhead for any given enterprise". He said wild swings in the stock price are a "major distraction" to workers and that being public "puts enormous pressure on Tesla to make decisions that may be right for a given quarter, but not necessarily right for the long-term". Will be way smoother & less disruptive as a private company.
They first rose above the conversion price in June 2017 and Tesla's stock price hit a record high of $389.61 in September past year. Even as the world's 31st-richest person and Tesla's largest shareholder, Musk would be reliant on outside funding for any buyout since his fortune is highly illiquid.
Musk has a history of making bold statements on Twitter and walking back from the precipice after more careful consideration, but the more detailed email to employees seems to add credence to his plan to go private. Because their shares are not held by members of the general public, they are not required to publish quarterly financial results or other relevant information. They closed at $379.57 - up 11 percent, but far from the $420 price Musk was dangling.
Despite its challenges, Tesla has remained a favourite among many investors, partly due to their faith in Mr Musk, who made his initial fortune as a co- founder of PayPal and also is the chief executive of a trail-blazing aerospace company, SpaceX, that's already private. The numbers from the report indicate that the PIF, which has more than $250 B in assets, has a stake of between $1.7 B and $2.9 B at Tesla's current share price.
Mr Musk has been under intense pressure this year to prove he can deliver on his promise to turn his money-losing company into a profitable higher-volume manufacturer.
Some observers initially derided Mr. Musk's plan to take Tesla private at $420 a share as a marijuana joke - 420 is a euphemism for April 20, a popular annual cannabis celebration.
As he often does, the outspoken entrepreneur took to Twitter to deliver the news.
"I would like to structure this so that all shareholders have a choice", Musk wrote.
At $420 per share, it would cost about $71 billion to take Tesla private. Employees would also continue to receive shares.
Tesla said in a regulatory filing in 2013 that investors interested in keeping up with Tesla should follow Musk's account. He also stated that this is not an attempt to assume more control over his company - Musk owns approximately 20 percent of Tesla right now, and he doesn't see that changing after the company goes private.