Thus Elon Musk intends to protect the company from sharp fluctuations in the stock price. If shareholders support this decision, investors will be given a choice: keep their stakes or sell them at a price of $420 per share (at the time of writing, shares were trading at $379.57).
"Being a public company subjects us to significant price fluctuations, which greatly distracts Tesla employees, most of whom also own shares," Musk wrote in a corporate blog. "In addition, we are under pressure to report every quarter, and this forces us to choose solutions that are good for the quarter but not for the long term."
Loup Ventures analyst Gene Munster believes that such a move by Musk is logical: investors expecting quarterly results hinder Tesla's main goal — the transition to renewable energy on a mass scale.
Musk is the largest holder of Tesla shares, with his stake estimated at about 20 percent. In second place are investment companies T. Rowe Price and Fidelity, with nine and eight percent respectively. The fourth largest stake belongs to the Baillie Gifford fund.
