STREAMING NOW: Watch Now

Read Elon Musk's email to Tesla employees

Tesla posted an email to employees from CEO Elon Musk on Tuesday afternoon. About three hours earlier, M...

Posted: Aug 8, 2018 5:59 AM
Updated: Aug 8, 2018 6:00 AM

Tesla posted an email to employees from CEO Elon Musk on Tuesday afternoon. About three hours earlier, Musk started a firestorm when he tweeted that he had secured funding to take the company private. Here is Musk's complete email.

The following email was sent to Tesla employees today:

Earlier today, I announced that I'm considering taking Tesla private at a price of $420/share. I wanted to let you know my rationale for this, and why I think this is the best path forward.

First, a final decision has not yet been made, but the reason for doing this is all about creating the environment for Tesla to operate best. As a public company, we are subject to wild swings in our stock price that can be a major distraction for everyone working at Tesla, all of whom are shareholders. Being public also subjects us to the quarterly earnings cycle that puts enormous pressure on Tesla to make decisions that may be right for a given quarter, but not necessarily right for the long-term. Finally, as the most shorted stock in the history of the stock market, being public means that there are large numbers of people who have the incentive to attack the company.

I fundamentally believe that we are at our best when everyone is focused on executing, when we can remain focused on our long-term mission, and when there are not perverse incentives for people to try to harm what we're all trying to achieve.

This is especially true for a company like Tesla that has a long-term, forward-looking mission. SpaceX is a perfect example: it is far more operationally efficient, and that is largely due to the fact that it is privately held. This is not to say that it will make sense for Tesla to be private over the long-term. In the future, once Tesla enters a phase of slower, more predictable growth, it will likely make sense to return to the public markets.

Here's what I envision being private would mean for all shareholders, including all of our employees.

First, I would like to structure this so that all shareholders have a choice. Either they can stay investors in a private Tesla or they can be bought out at $420 per share, which is a 20% premium over the stock price following our Q2 earnings call (which had already increased by 16%). My hope is for all shareholders to remain, but if they prefer to be bought out, then this would enable that to happen at a nice premium.

Second, my intention is for all Tesla employees to remain shareholders of the company, just as is the case at SpaceX. If we were to go private, employees would still be able to periodically sell their shares and exercise their options. This would enable you to still share in the growing value of the company that you have all worked so hard to build over time.

Third, the intention is not to merge SpaceX and Tesla. They would continue to have separate ownership and governance structures. However, the structure envisioned for Tesla is similar in many ways to the SpaceX structure: external shareholders and employee shareholders have an opportunity to sell or buy approximately every six months.

Finally, this has nothing to do with accumulating control for myself. I own about 20% of the company now, and I don't envision that being substantially different after any deal is completed.

Basically, I'm trying to accomplish an outcome where Tesla can operate at its best, free from as much distraction and short-term thinking as possible, and where there is as little change for all of our investors, including all of our employees, as possible.

This proposal to go private would ultimately be finalized through a vote of our shareholders. If the process ends the way I expect it will, a private Tesla would ultimately be an enormous opportunity for all of us. Either way, the future is very bright and we'll keep fighting to achieve our mission.

Thanks,

Elon

Minnesota Coronavirus Cases

Data is updated nightly.

Cases: 604406

Reported Deaths: 7629
CountyCasesDeaths
Hennepin1249281777
Ramsey52501896
Dakota46829470
Anoka42767458
Washington27423291
Stearns22555224
St. Louis18138313
Scott17550135
Wright16374149
Olmsted13397102
Sherburne1201695
Carver1067248
Clay826092
Rice8200110
Blue Earth762544
Crow Wing681794
Kandiyohi667985
Chisago619852
Otter Tail585884
Benton582998
Goodhue483874
Douglas475481
Mower470633
Winona461351
Itasca459463
Isanti439964
McLeod430561
Morrison424862
Beltrami407861
Nobles407650
Steele397916
Polk389072
Becker386755
Lyon363853
Carlton352856
Freeborn346933
Pine335023
Nicollet331245
Mille Lacs311954
Brown307840
Le Sueur297326
Cass286132
Todd285633
Meeker263342
Waseca238023
Martin235332
Roseau211221
Wabasha20783
Hubbard196641
Dodge18783
Renville182446
Redwood176539
Houston174616
Cottonwood167124
Wadena163323
Fillmore157410
Faribault154719
Chippewa154038
Pennington153820
Kanabec146828
Sibley146810
Aitkin138937
Watonwan13579
Rock128719
Jackson122612
Pipestone116726
Yellow Medicine114920
Pope11306
Murray107110
Swift106918
Koochiching95417
Stevens92411
Clearwater89016
Marshall88817
Lake83220
Wilkin83213
Lac qui Parle75622
Big Stone6044
Grant5948
Lincoln5853
Mahnomen5669
Norman5479
Kittson49022
Unassigned48393
Red Lake4017
Traverse3775
Lake of the Woods3453
Cook1720

Iowa Coronavirus Cases

Data is updated nightly.

Cases: 371050

Reported Deaths: 6051
CountyCasesDeaths
Polk58259640
Linn21218339
Scott20307248
Black Hawk16139312
Woodbury15238230
Johnson1461985
Dubuque13509211
Dallas1128899
Pottawattamie11225174
Story1071448
Warren583891
Clinton561593
Cerro Gordo554093
Sioux517474
Webster515794
Muscatine4882106
Marshall486676
Des Moines467472
Wapello4338122
Buena Vista426940
Jasper421172
Plymouth403181
Lee382356
Marion366076
Jones300957
Henry294637
Bremer288461
Carroll286952
Boone268634
Crawford268440
Benton259855
Washington257251
Dickinson249344
Mahaska232651
Jackson225242
Clay216727
Kossuth216166
Tama211971
Delaware211143
Winneshiek198635
Page194522
Buchanan193833
Cedar192423
Hardin187444
Fayette186643
Wright186040
Hamilton181951
Harrison180073
Clayton171157
Butler166335
Madison164619
Mills163824
Floyd163442
Cherokee159338
Lyon158841
Poweshiek157036
Allamakee152952
Hancock150334
Iowa149824
Winnebago144531
Cass139255
Calhoun138913
Grundy137333
Emmet135841
Jefferson133435
Shelby131537
Sac130920
Union130035
Louisa129849
Appanoose129049
Mitchell126643
Chickasaw124817
Franklin123523
Guthrie123332
Humboldt119626
Palo Alto113623
Howard104922
Montgomery103638
Clarke100924
Keokuk96732
Monroe96431
Unassigned9560
Ida91535
Adair87332
Pocahontas85822
Davis85225
Monona82931
Osceola78916
Greene78011
Lucas77923
Worth7618
Taylor66812
Fremont6269
Decatur6169
Ringgold56424
Van Buren56418
Wayne54423
Audubon53411
Adams3444
Rochester
Cloudy
61° wxIcon
Hi: 81° Lo: 59°
Feels Like: 61°
Mason City
Cloudy
63° wxIcon
Hi: 82° Lo: 63°
Feels Like: 63°
Albert Lea
Cloudy
63° wxIcon
Hi: 81° Lo: 62°
Feels Like: 63°
Austin
Cloudy
63° wxIcon
Hi: 82° Lo: 61°
Feels Like: 63°
Charles City
Cloudy
68° wxIcon
Hi: 79° Lo: 64°
Feels Like: 68°
Sunshine to start the workweek
KIMT Radar
KIMT Eye in the sky

Latest Video

Image

Ryan's Evening Forecast (6/20/21)

Image

Aaron's Evening Forecast (6/20/21)

Image

Aaron's Sunday Forecast (6/20/21)

Image

Ryan's Morning Forecast (6/20/21)

Image

Million Dollar Hole-In-One shootout begins Saturday

Image

Juneteenth Jubilee

Image

Hayfield baseball team wins state

Image

Flavor Fest

Image

Ryan's 6 PM Weather

Image

Ryan's Evening Forecast (6/19/21)

Community Events