Hercules Investments CEO James McDonald assesses Tesla’s future.
It is “impossible” for Elon Musk to make Tesla private – despite the CEO’s belief that releasing the electric carmaker from its functions as a public company would help accelerate innovation, he said on Christmas Eve.
ELON MUSKS SAYS HUMANS WILL BE ON MARS WITHIN 6 YEARS
“The company’s engineering, design and general operations absorb the vast majority of my mind and are the fundamental limitation to doing more,” Musk tweeted in response to a user who was speculating on how the tech mogul might allocate his time better. “The bonds of Tesla’s publicly traded company are a much bigger factor, but going public is impossible now (sigh).”
Tesla, which was added to the S&P 500 benchmark this week, has seen its shares rise 670 percent since the beginning of the year. With its market capitalization of almost $ 630 billion, Tesla would be by far the biggest acquisition of all time.
A Tesla Model X. REUTERS / Arnd Wiegmann
Musk was famous for getting into trouble with the Securities and Exchange Commission after sending out a tweet on August 7, 2018 that said he was “considering going public for Tesla for $ 420. Secured financing. “
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The marijuana joke earned him a $ 20 million fine and resulted in him being forced out of his position as Tesla president.
Musk on the farm too tweeted that Starlink – the satellite internet broadcast business within SpaceX – is its next IPO-likely venture, saying it would go public “as soon as revenue growth is reasonably predictable”.
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