Tesla U-Turn Ignites Public-Private Debate

Tesla founder Elon Musk is not alone in his irritation with the short-termism of the markets, but there are few ownership structures that would leave him free to run the company uninhibited

Cherry Reynard 28 August, 2018 | 2:30PM

Tesla Model S Electric Car

Elon Musk may have backtracked on any plans to take Tesla into private hands, but his flirtation with delisting has exposed some growing disillusionment with public markets. Musk has made it clear that he considers public markets too short-term for a "visionary" business such as Tesla, while also expressing his exasperation with short-sellers.

Musk is not alone in his irritation with the short-termism of the market. In June this year, business leaders Jamie Dimon and Warren Buffett wrote a Wall Street Journal article called “Short-Termism is Harming the Economy”, saying the pressure to meet short-term earnings estimates had "contributed to the decline in the number of public companies in America over the past two decades".

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Mid Wynd International Inv Tr PLC O Inc635.00 GBX-0.78
Tesla Inc1,208.66 USD7.95

About Author

Cherry Reynard

Cherry Reynard  is a financial journalist writing for Morningstar.co.uk.

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