- Elon Musk said on Friday that privatizing Tesla is now “impossible”.
- “Tesla’s public company responsibilities are a bigger factor, but now (sigh) it is impossible to privatize,” Musk wrote on Twitter.
- In response to another user, Musk said that “engineering, design, and head office operations” are “fundamental restrictions on spending more time innovating.”
- He also said that SpaceX’s Internet satellite project Starlink is “very likely” to be publicly released “on the condition that revenue growth can be reasonably predicted.”
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Elon Musk said on Friday that privatizing Tesla is now “impossible,” although doing so may lead to more innovation by electric car manufacturers.
Tesla’s stock price was nearly eight times higher than that at the beginning of the year, and it became the fifth largest member of the S&P 500 Index on December 21.
Musk responded to YouTuber Dave Lee’s comments on Twitter on Friday. He said that “engineering, design, and head office operations” are the “fundamental limit” for spending more time on innovation.
He said on Twitter: “Tesla’s public company responsibilities are a bigger factor, but now (sighs) it’s impossible to privatize.”
The term “privatization” refers to the conversion of a publicly traded company into a private entity through, for example, a private equity acquisition.
-Elon Musk (@elonmusk) December 25, 2020
With a market value of more than $600 billion, Tesla will be the largest acquisition ever.
In August 2018, Musk stated that he wanted to take Tesla private, a remark that put him in trouble with the Securities and Exchange Commission (SEC).
Musk wrote on Twitter at the time: “I’m considering privatizing Tesla for $420. Funded.” The SEC believes that Musk has not reached a reliable agreement, so he said he knew or had reason to know. Musk’s statement is “false and misleading.”
He was forced to resign as chairman of Tesla.
Starlink IPO “possible”
Musk said in a subsequent tweet that his aerospace company SpaceX’s satellite internet project Starlink will “very likely” be spun off from SpaceX and go public “once revenue growth can be reasonably predicted.”
Starlink is currently in the public beta phase, and the participation fee is $600. Approximately 900 satellites carry the Internet to parts of the United States and Canada, and some users report speeds exceeding 200 megabits per second.
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Musk plans to bring Starlink to other parts of the world, including Europe, in 2021. In early December, SpaceX won a federal subsidy of $885 million to expand Starlink to other parts of the United States.
SpaceX plans to put up to 42,000 Starlink satellites into orbit in total. The goal is to provide high-speed Internet to almost any location on the planet and generate annual revenue of 30-50 billion US dollars.
This is not Starlink’s first public listing. SpaceX chief operating officer Gwynne Shotwell said in an interview with Bloomberg in February: “At present, we are a private company, but Starlink is the right business we can start and go public.” “This special part is business. In part, we are likely to spin off and go public.”