Why is it notable that things are staying the way they were?
In early August, Musk tweeted that he had secured financing to buy the company out from the stock market, making them more independent. But the fund has made no comment on whether it had promised to back a much larger Tesla go-private deal.
Well, turns out that deal was not exactly done, the funding far from secured. Some analysts said the drama has damaged the credibility of both Musk and his board, and called for the company to bring in a top operations executive to help right the ship.
According to an open letter Musk wrote to shareholders on Friday, he anxious that too many small investors would not be able to participate, and that current large Tesla institutional shareholders would have to sell their interests.
A possibility behind Musk's sudden change of heart regarding privatization may be related to an attempt by Volkswagen to purchase the company out from under him. Turns out no one was all that into the idea to begin with. "Although the majority of shareholders I spoke to said they would remain with Tesla if we went private, the sentiment, in a nutshell, was "please don't do this". Then Musk aborted his own mission, when hastily assembled bankers and advisers had barely started work, according to people familiar with the matter.
Musk had hired advisers including Goldman Sachs Group Inc. and Silver Lake as well as Morgan Stanley.
Founder and CEO of Tesla Motors Elon Musk speaks during a media tour of the Tesla Gigafactory, which will produce batteries for the electric carmaker, in Sparks, Nevada, U.S. July 26, 2016.
Perhaps it was simply because Elon Musk didn't think it all the way through or consider all the possible outcomes when he "considered" a private buyout. Musk's exhaustion, which the CEO described in a New York Times interview, is the "most critical near-term concern".
So for now, Model 3 production and sustainable profits will take precedent over any plans to privatize the company.
Explaining his reversal in a late-night blog post on Friday, the billionaire CEO said that taking the company private "would be even more time-consuming and distracting than initially anticipated", and that "most of Tesla's existing shareholders believe we are better off as a public company".