Elon Musk says he scrapped his plans to take Tesla private after hearing from investors like Cathie Wood.
The Ark Invest boss sent the Tesla CEO a letter signaling small investors would like Tesla to stay publicly traded.
Musk was testifying in the trial over a 2018 tweet saying he had funding to take Tesla private.
These 13 members of Congress have traded stock in Elon Musk’s companies during 2022
Rep. Nancy Pelosi, a Democrat from California
Rep. Pat Fallon, a Republican from Texas
Sen. Sheldon Whitehouse, a Democrat from Rhode Island
Rep. John Garamendi, a Democrat from California
Rep. Mike Garcia, a Republican from California
Rep. Josh Gottheimer, a Democrat from New Jersey
Rep. Kim Schrier, a Democrat from Washington
Rep. Vicente Gonzalez, a Democrat from Texas
Rep. Chris Jacobs, a Republican from New York
Rep. Kathy Manning, a Democrat from North Carolina
Rep. Ro Khanna, a Democrat from California
Rep. David McKinley, a Republican from West Virginia
Rep. Robert Aderholt, a Republican from Alabama
Elon Musk told a court he scrapped his plans to take Tesla private after getting a letter from Ark Invest’s Cathie Wood and hearing that investors wouldn’t like the move.
The billionaire Tesla CEO said Tuesday he was seriously considering a buyout deal for the electric-vehicle maker for about two weeks, the BBC reported, but dropped the move after talking with key investors.
“I felt it was important to be responsive to their wishes,” Musk said on his third day of testimony in the ongoing jury trial, sparked by a class-action shareholder lawsuit.
Asked whether he had heard from smaller investors, Musk said Wood”represents small investors,” MarketWatch reported. The Ark Invest CEO was among the most influential people that would prefer Tesla to stay publicly listed, he said, because otherwise her funds couldn’t participate.
The lawsuit on trial in San Francisco alleges Musk committed securities fraud. Some investors have accused Musk of illegally manipulating Tesla’s stock price via August 2018 tweets saying there was “funding secured” to take the carmaker private at $420 per share.
“Just because I tweet something does not mean people believe it or will act accordingly,” he said Friday.
Influential investor Wood has stayed bullish on Tesla even as the stock has slid, regularly loading up on the EV-maker’s shares in recent months, despite criticism of Musk as distracted by his purchase of Twitter.