Tesla CEO tweeting about the possibility of taking Tesla private, says it's "impossible" to take Tesla private, but added Starlink's IPO would make sense once revenue becomes predictable.
Elon Musk was replying to a tweet from a Tesla investor Dave Lee, who had earlier wrote about Elon optimizing his time by creating a new umbrella company to hold Tesla, SpaceX, The Boring Company and so on. Lee also wrote "This is an opportunity to create a structure that would optimize his time and interests the most."
Engineering, design & general company operations absorb vast majority of my mind & are the fundamental limitation on doing more. Capital allocation is important, but low CPU load. Tesla public company duties are a much bigger factor, but going private is impossible now (sigh).— Elon Musk (@elonmusk) December 25, 2020
Musk replied in a tweet and wrote, "Engineering, design & general company operations absorb vast majority of my mind & are the fundamental limitation on doing more. Capital allocation is important, but low CPU load. Tesla public company duties are a much bigger factor, but going private is impossible now (sigh)."
When another person, named Harsimran Bansal asked if we can safely conclude that none of Musk's companies will be going public anytime soon, Elon replied and wrote, "It will most likely make sense for Starlink to go public once the revenue growth is reasonably predictable."
Other investors also commented saying things like if capital allocation is not a problem, a holding company doesn’t make sense. Suggestion to free up your mind. Drop the CEO role to someone else. Focus on what makes you great.
Do you think Tesla would grow its production and sales capacity faster if it was private? It would have to deal with a lot less drama and be really efficient like SpaceX.
Armen Hareyan is the founder and the Editor in Chief of Torque News. He founded TorqueNews.com in 2010, which since then has been publishing expert news and analysis about the automotive industry. He can be reached at Torque News Twitter, Facebok, Linkedin and Youtube.
