Musk Says It’s ‘Impossible’ to Take Tesla Private, Mulls New IPO
(Bloomberg) - Billionaire Elon Musk said it was "impossible" to take Tesla Inc. privately now, even though he would have liked to spend more time innovating.
"Tesla public company duties are a much bigger factor, but it's impossible to go private now (sigh)," Musk replied to a tweet saying he should optimize his time in areas like innovation. "Engineering, design, and general business operations take up most of my mind and are the fundamental constraint on doing more."
Tesla stocks, which joined the S&P 500 index this week, have increased eight-fold this year before the benchmark metric was added. The gain is twice that of the next best player on the gauge. The share price jump also created millionaires among its investors, increasing Musk's net worth by $ 132.2 billion to $ 159.7 billion. That made him the second richest person in the world according to the Bloomberg Billionaires Index.
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Musk also said that Starlink, SpaceX 'burgeoning space internet business, would likely be a candidate in its group to go public once its revenue growth becomes "reasonably predictable," reiterating similar comments from the company's president Investors earlier this year.
Space Exploration Technologies Corp. has already launched more than 240 satellites to build Starlink, President Gwynne Shotwell said at a private investor event in February.
A listing would give investors the opportunity to get involved in one of the most promising businesses of the closely held company. "We're a private company right now, but Starlink is the right kind of business to go public," she said.
Investors have had limited options until now to own a piece of SpaceX that has become one of the most valued venture-backed companies in the US due to the dominance of the commercial missile industry.
In addition to a contract with NASA for a version of their next-generation spaceship that will allow astronauts to land on the moon in 2024, SpaceX has signed an agreement with a Japanese entrepreneur for a private flight around the moon in 2023 that Musk is ready to undertake his first spacecraft flight Starting Mars in 2026, Musk said earlier this month.
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