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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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Elon Musk’s Boring Company Lays off its Workers

Musk-led private spaceflight company SpaceX also announced that it would lay off 10 per cent of its workforce to fund other projects

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Elon Musk, spacex
Musk quotes $1 bn to build tunnel under Australian mountain range. IANS

Billionaire Elon Musk’s infrastructure and tunnel construction firm Boring Company has laid off five employees, barely a month after it unveiled its first tunnel in the US.

According to the Recode, on Friday, the company terminated five employees, at least some of whom helped construct that first underground passageway.

The spokesman said that the employees were fired for performance reasons as part of regular performance reviews, the report added.

“The Boring Company is hiring for over a dozen roles, pursuing a number of projects across the country, and planning to grow significantly in 2019,” he was quoted as saying in the report.

Musk had unveiled the prototype tunnel for his envisioned zero-emission, high-speed transit system — including a surface-to-tunnel car elevator and a Tesla modified — to run along the tunnel track, outside SpaceX’s California headquarters in mid-December 2018, according to the Fast Company.

In Chicago, the company was reportedly slated to build a “Loop” which they described on their website as: “Loop is a high-speed underground public transportation system in which passengers are transported on autonomous electric skates travelling at 125-150 miles per hour.”

In order to implement this system, the company will have to dig the tunnels and deploy the infrastructure to move the “autonomous electric skates” inside the tunnels.

“Electric skates will carry between 8 and 16 passengers, or a single passenger vehicle,” according to the Electrek.

Electric car making firm Tesla, also founded by Musk, announced last Friday it was laying off seven per cent of its full-time staffers in an attempt to reduce costs and increase profits.

Also Read- Microsoft Lays AI Sensors for Smart Farming, Cutting-edge Healthcare in India

All employees at the company were informed about the development in an email.

Musk-led private spaceflight company SpaceX also announced that it would lay off 10 per cent of its workforce to fund other projects.

SpaceX, which has a contract with NASA to deliver cargo to the International Space Station (ISS), is now planning to start flying astronauts to the ISS for NASA later this year. (IANS)