Industry

Tesla to remain listed on stock exchanges

‘Shareholder feedback drives decision’

Tesla CEO Elon Musk said he would heed shareholder concerns and no longer pursue a $72-billion deal to take the U.S. electric car maker private, abandoning an idea that had stunned investors and drawn regulatory scrutiny.

The decision leaves Tesla as a publicly listed company but raises new questions about its future. Its shares have been trading below their August 7 levels, when Mr. Musk announced on Twitter he was considering taking Tesla private for $420 per share, as investors wondered what the long-shot bid meant for Mr. Musk’s ability to steer the company to profitability.

The move also leaves Mr. Musk and Tesla having to fend off a series of investor lawsuits and a U.S. Securities and Exchange Commission probe into the accuracy of Mr. Musk’s tweet that funding for the deal was “secured.” He attributed his decision to abandon the bid to shareholder feedback.

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Printable version | Jun 4, 2020 4:42:37 PM | https://www.thehindu.com/business/Industry/tesla-to-remain-listed-on-stock-exchanges/article24781813.ece

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