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Elon Musk Decides to Keep Tesla As A Public Company

"I knew the process of going private would be challenging, but it's clear that it would be even more time-consuming and distracting than initially anticipated." Musk said.

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Tesla, board
Tesla to lay-off 7% full-time staff amid China dreams. Pixabay

Paying heed to his investors’ feedback, Tesla Chairman and CEO Elon Musk has decided not to veer the electric carmaker off the road and let it remain a publicly traded company to stay focus on becoming profitable.

On August 7, Musk surprised the investment world with a Twitter announcement that he was considering taking Tesla private and that the funds needed to do so were “secured”.

Musk’s tweet caused a financial firestorm with Tesla shares immediately skyrocketing. But in later days, they lost a good part of what they had gained and tanked further over the confusion which way Tesla might go.

In a blog post late on Friday, Musk took a U-turn, saying his investors were extremely important to him.

“Almost all have stuck with us from the time we went public in 2010 when we had no cars in production and only a vision of what we wanted to be.

“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,” Musk wrote.

This came after Musk had discussions with existing shareholders and financial advisors and learned that there was little appetite for such a move.

Elon Musk
Elon Musk, founder, CEO and lead designer at SpaceX. VOA

“Additionally, a number of institutional shareholders have explained that they have internal compliance issues that limit how much they can invest in a private company. There is also no proven path for most retail investors to own shares if we were private,” said Musk.

“Although the majority of shareholders I spoke to said they would remain with Tesla if we went private, the sentiment, in a nutshell, was ‘please don’t do this’,” he added.

Since the Musk announcement came over the weekend, its impact on Tesla stock will only be visible when the US market reopens on August 27.

Musk said he worked with investment firms like Silver Lake, Goldman Sachs and Morgan Stanley to consider the many factors that would come into play in taking Tesla private.

He also spent considerable time listening to current shareholders, large and small, to understand what they think would be in the best long-term interests of Tesla.

Also Read: Tesla Chairman Elon Musk’s Twitter Gets Hacked Again

“I knew the process of going private would be challenging, but it’s clear that it would be even more time-consuming and distracting than initially anticipated. This is a problem because we absolutely must stay focused on ramping Model 3 and becoming profitable,” Musk said.

In an interview to The New York Times this month, Musk spoke about “excruciating” times and long working hours at Tesla, noting that he “nearly missed his brother’s wedding this summer and spent his birthday holed up in Tesla’s offices as the company raced to meet elusive production targets on a crucial new model”.(IANS)

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Hackers Win Tesla Car For Exposing System Error

The EV-maker was fairly quick to fix vulnerabilities exposed by white hat hackers

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Tesla CEO Elon musk, board
Tesla CEO Elon Musk. (VOA)

Electric Vehicle (EV)-maker Tesla had to give away one of their Model 3 cars and $35,000 prize money to a group of hackers after they managed to crack its system during a hacking event.

Amat Cama and Richard Zhu of team Fluoroacetate exposed a vulnerability in the vehicle system during the Pwn2Own 2019 hacking competition, organised by Trend Micro’s “Zero Day Initiative (ZDI)”, held here this week.

The hackers targeted the infotainment system on the Tesla Model 3 and used a “JIT bug in the renderer” to take control of the system, Electrek reported on Saturday.

Charging problems with electric car
Tesla cars recharge at a Tesla station at a shopping center in Charlotte, N.C., June 24, 2017. Buyers of Tesla’s luxury models have access to a company-funded Supercharger network. VOA

“Since launching our bug bounty programme in 2014, we have continuously increased our investments into partnerships with security researchers to ensure that all Tesla owners constantly benefit from the brightest minds in the community,” the report quoted David Lau, Vice President of Vehicle Software at Tesla as saying.

Also Read- Smokers Notice Health Warnings More on Plain-Packaged Cigarettes

As part of Tesla’s bug bounty programme, the company had given away hundreds of thousands of dollars in rewards to hackers who exposed vulnerabilities in its systems.

The EV-maker was fairly quick to fix vulnerabilities exposed by white hat hackers, the report said. (IANS)