Why Elon Musks Tesla Should go Private and Why it Wont?
The famous celebrity entrepreneur Elon Musk recently took a page out of Donald Trumps handbook. Trump has been famous for his Twitter rants. This time it was Elon Musk who tweeted about his intent to take his company Tesla private and set the Wall Street rumor mill abuzz. Tesla is basically a startup company with an innovative product. The company produces luxury electric vehicles. Consumers are very enthusiastic about this product.
Teslas vehicles are considered to be very expensive. Yet, there are people who wait for several months to get the delivery of their product.
However, this promising startup seems to have fallen into trouble soon after Elon Musk took the company public in 2013. Tesla shares sold for $17 per share during the IPO. This gave the company a valuation of close to $250 million. In 2018, Tesla has a massive valuation of close to $60 billion! Since the company has grown so big so soon, it has been the target of several stock market attacks.
In this article, we will explain the reasons why going private would be the best thing for Tesla. However, we will also try to understand why going private may not really be an option given the complexities of the situation.
Why Elon Musks Tesla Should go Private?
Reasons Why Tesla Cant go Private?
Elon Musk and his company Tesla seemed to have gone too far on the public corporation route. Going private is indeed possible. However, it will be a very challenging task indeed. Some of the challenges have been listed below.
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