Tesla goes private News Journal 2
Article on free trade
Gelles, David. "Why Elon Musk Reversed Course on Taking Tesla Private" The New York Times 25 Aug. 18. https://www.nytimes.com/2018/08/25/business/elon-musk-tesla-private.html
This article is about how the CEO of Tesla has announced that he wanted to make the company private but later decided to reverse his decision and keep it public. While seeming impulsive for his decisions, Musk is actually making the better decision by keeping it public. By making it private it would allow for the short-term pressures of the public market to disappear. But after realizing how difficult the change would be Musk decided to instead focus on popularizing the electric vehicle and reducing reliance on fossil fuels. Musk admitted himself that the four main aspects that made him change his mind were, " existing shareholders believe Tesla is better off as a public company; not all existing investors would be able to own shares of a private company; it wasn’t clear how individual investors would take part in a deal; and the process could distract the company from production of its first mass-market offering, the Model 3, which is crucial to its financial health."(Gelles)
This article relates to the idea of a free trade because with Tesla changing its public status, it will alter whether the stock of the company would be freely traded or not. If it was privatized then the company stocks would not be able to be traded. By keeping it free, it is now able to be traded in a free market. However by making the company private then it removes the opportunity to get involved in the company.
Gelles, David. "Why Elon Musk Reversed Course on Taking Tesla Private" The New York Times 25 Aug. 18. https://www.nytimes.com/2018/08/25/business/elon-musk-tesla-private.html
This article is about how the CEO of Tesla has announced that he wanted to make the company private but later decided to reverse his decision and keep it public. While seeming impulsive for his decisions, Musk is actually making the better decision by keeping it public. By making it private it would allow for the short-term pressures of the public market to disappear. But after realizing how difficult the change would be Musk decided to instead focus on popularizing the electric vehicle and reducing reliance on fossil fuels. Musk admitted himself that the four main aspects that made him change his mind were, " existing shareholders believe Tesla is better off as a public company; not all existing investors would be able to own shares of a private company; it wasn’t clear how individual investors would take part in a deal; and the process could distract the company from production of its first mass-market offering, the Model 3, which is crucial to its financial health."(Gelles)
This article relates to the idea of a free trade because with Tesla changing its public status, it will alter whether the stock of the company would be freely traded or not. If it was privatized then the company stocks would not be able to be traded. By keeping it free, it is now able to be traded in a free market. However by making the company private then it removes the opportunity to get involved in the company.
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