Chief Executive Elon Musk abandoned plans to take the luxury electric car maker private.
Elon Musk is betting that a privately held Tesla Inc would free his company of distracting scrutiny. But going private could also complicate Tesla’s effort to build a mainstream electric car by removing the easy access to capital the Wall Street darling has enjoyed.
Musk on Tuesday proposed taking Tesla private at US$420 a share, about 11% higher than the day’s closing stock price. He called the funding “secured” for what would be the biggest-ever corporate buyout, but he hasn’t disclosed details. The board on Wednesday said it is still evaluating the plan. Tesla’s stock was down 2% to US$371.35 in Wednesday afternoon trading.
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