Analysis: Why Elon Musk abandoned his plan to take Tesla private

Enlarge / Elon Musk speaks in Austin, Texas, on March 10, 2018. (credit: FilmMagic/FilmMagic for HBO)

Elon Musk has abandoned his effort to take Tesla private, announcing the move in a post on Tesla's website late on Friday evening.

"Given the feedback I've received, it's apparent that most of Tesla's existing shareholders believe we are better off as a public company," Musk wrote. "I knew the process of going private would be challenging, but it's clear that it would be even more time-consuming and distracting than initially anticipated."

It's obvious why Musk was attracted to the idea of taking Tesla private. Private companies are exempt from most of the transparency requirements imposed on public companies, and they tend to face less pressure to meet quarterly earnings targets than public companies. But it was always a bit of a mystery why Musk thought shareholders would want to go along with his plan.

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