Tesla’s Mission Is More Easily Accomplished as a Private Company
Loup Ventures analyst Gene Munster thinks Elon Musk's idea to take electric car maker Tesla private is probably a good one. Whether it can be done is another story.
By Gene Munster of Loup Ventures
- This story is still developing, but here are our preliminary thoughts.
- Our guess is there is a 1 in 3 chance he can actually pull this off and bring Tesla private. The 16% premium to current share price may not be high enough to incentivize existing shareholders to support the sale.
- Musk does not want to run a public company. His mission for Tesla (to accelerate the globe’s adoption of sustainable energy) is both grand and long-term, making it difficult to accommodate investors quarterly expectations.
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- He originally brought Tesla public in 2010, given he could no longer personally finance its growth, and has continually expressed his frustration with the company being public.
- Musk’s other endeavors, SpaceX and The Boring Company, are private.
- We do not see any legal risk in disseminating material information on Twitter due to the Reed Hastings Rule.
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Disclaimer: We actively write about the themes in which we invest: virtual reality, augmented reality, artificial intelligence, and robotics. From time to time, we will write about companies that are in our portfolio. Content on this site including opinions on specific themes in technology, market estimates, and estimates and commentary regarding publicly traded or private companies is not intended for use in making investment decisions. We hold no obligation to update any of our projections. We express no warranties about any estimates or opinions we make.
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
