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How Elon Musk walked away from Tesla’s privatization despite $30 billion offer

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Last Wednesday, Elon Musk received an offer for the company’s possible privatization. The proposal was presented to Musk by advisers from Goldman Sachs and Silver Lake, and included a roster of prolific investors willing to contribute as much as $30 billion to Tesla. A day later, Musk met with the company’s Board of Directors at the Fremont factory and announced that he is withdrawing his proposal to take the company private.

The story of Tesla’s attempted privatization started off with a tweet. On August 7, Elon Musk announced on Twitter that he was considering taking Tesla private at $420 per share. Musk also added that funding had been secured for the deal. Later tweets during the day further suggested that the deal was quite certain and that Tesla’s privatization only needed a shareholder vote. Musk eventually published a blog post explaining his tweet a few days later, stating that his reference to funding being secured came from talks with Saudi Arabia’s sovereign wealth fund. The weeks following Musk’s initial announcement were volatile. SEC investigations were reportedly started, lawsuits were filed, and the company’s shares took a deep dive, at one point dipping below $290 per share.

Musk had been thinking of taking Tesla private for a while now. Being a public company, Tesla is subjected to the wild swings of the stock market, relentless attacks from short-sellers, and quarterly pressures from Wall Street. Musk’s other company, SpaceX, is private, and it pretty much runs like a far better-oiled version of Tesla. In an email to the Wall Street Journal this past weekend, Elon Musk explained that Tesla’s privatization was only feasible now, as the company is poised to rise considerably in the coming months.

“In my opinion, the value of Tesla will rise considerably in the coming months and years, possibly putting any take-private beyond the reach of any investors. It was now or perhaps never,” Musk wrote.

Elon Musk hired several high-profile advisers for Tesla’s possible privatization, including bankers from Goldman Sachs, as well as attorneys from Wachtell, Lipton, Rosen & Katz. Musk also hired Egon Durban of Silver Lake Partners, who had brokered and helped bankroll the buyout of computer maker Dell when it went private. Musk also kept close counsel with Tesla executives such as Chief Technology Officer J.B. Straubel, Attorney Todd Maron (who was once his divorce lawyer), finance chief Deepak Ahuja, and his brother Kimbal, who also holds a seat at Tesla’s board.

On August 18, Elon Musk presented ideas about how Tesla’s privatization could be done. According to the Wall Street Journal, the members of the Board were in support of Musk’s go-private initiative, though some had reservations about the CEO’s actions on Twitter. Musk reportedly admitted to his rashness and pledged to exercise more self-control on the social media platform. Musk then went over to the Fremont factory, where he worked until past midnight, tweeting past 2 a.m. that he had just gotten home. He was able to rest the following day.

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Tesla’s advisers went into overdrive on August 20 and 21, coming up with a list of possible investors that would provide funding for the company to go private. By August 22, advisers from Goldman Sachs and Silver Lake had a list of interested investors who were willing to fund Tesla’s privatization at $420 per share. Among them were Silver Lake itself, as well as German auto giant Volkswagen AG. The investors have reportedly agreed to contribute as much as $30 billion for the deal. Elon Musk had reservations.

 

Musk was reportedly suspicious of rival car companies taking a stake in Tesla, particularly since they could piggyback on what the CEO called the “Tesla Halo.” Musk was also bothered by the notion that some of Tesla’s most ardent supporters would likely be pushed out of the privatization deal. For one, Fidelity Investments, which has supported Tesla over the years, would not be able to roll its entire stake in the company due to regulatory constraints.

Retail investors — individual shareholders who believe in Tesla’s mission and are putting in their hard-earned money into the company — might be in jeopardy as well. Then there was the photo. Earlier this month, Musk received a photo emailed to him by an elderly couple dressed in Tesla t-shirts with a handwritten sign congratulating the company for producing 7,000 electric cars in seven days. The message in the photo was short, simply saying “Thanks, Elon! Two happy stockholders!” Musk reportedly forwarded the email to a friend, writing that the picture “Made my day.”

After giving him the $30 billion offer, the privatization deal team advised Musk that the funding would likely come with several strings attached, as some major investors might want to have specific terms for themselves. Some would also demand to have a lot of say in the company.

The day after, a board meeting was held in a conference room at the Fremont factory — one that still had a used sleeping bag from Musk’s overnight working sessions at the facility. The company’s financial advisers stated that they were confident that Tesla’s privatization could be done. Then, it was Musk’s turn to speak.

“Based on the latest information I have, I’m withdrawing the proposal,” Musk said.

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Elon Musk’s blog post explaining his decision to keep the company public was published on Tesla’s official website a day later.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Elon Musk

SpaceX just got the green light Starship has waited years for

The FAA has cleared Starship Flight 14, setting up SpaceX’s first orbital attempt on Monday.

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SpaceX has cleared the last regulatory hurdle standing between Starship and its first trip to orbit. The Federal Aviation Administration issued the launch license for Starship Flight 14 late Saturday, keeping the mission on track for liftoff Monday, September 28, from Pad 2 at Starbase, Texas.

The 75 minute launch window opens at 7:15 a.m. Central, and Boca Chica Beach closures are also scheduled for September 29 and 30 as backup dates. This will be Starship’s first revenue generating mission.

The license was the missing piece after SpaceX completed a full wet dress rehearsal with Booster 21 and Ship 41 on September 24. At the time, the company said the flight remained on track pending regulatory approval. Because Flight 14 flies an orbital profile, the FAA had to sign off on a modified license that met its safety, payload and financial responsibility requirements.

Observers combing through the new FAA paperwork also noticed that lightning no longer appears among Starship’s listed launch hazards. If that holds, it matters more for where Starship is headed than for Monday’s attempt. Florida and Louisiana, home to LC-39A and the planned Starbase Louisiana site, see some of the most frequent lightning in the United States.

SpaceX tells the FCC that Starship Flight 14 is going to orbit

Flight 14 is the mission SpaceX has been building toward for months. Ship 41 will carry 26 Starlink V3 satellites, the first operational V3 units to be deployed, and attempt roughly six orbits at about 275 kilometers over a flight lasting just under 10 hours. SpaceX says the ship will only perform its orbital insertion burn after flight controllers confirm enough hardware redundancy remains for the deorbit burn at the end of the mission. Ship 41 is targeting a splashdown in the Pacific west of Chile, while Super Heavy will return to the Gulf of Mexico.

The date carries some symbolism as well. A Monday launch would come 10 years and one day after Elon Musk first presented the Interplanetary Transport System, the design that became Starship, at the International Astronautical Congress in Guadalajara, Mexico.

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SpaceX has not announced what comes next, but air traffic planning slides reported this week, list Flight 15 no earlier than October 19 and a first Starship launch from LC-39A in Florida no earlier than October 30. Both dates depend on how Monday goes.

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Investor's Corner

Tesla Optimus Gen 3 shows off a cleaner, factory-ready design in new app discovery

Renders hidden inside Tesla’s Android app show Optimus Gen 3’s design before any official reveal.

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Tesla Optimus Gen 3 [Credit: Tesla]

Tesla may have accidentally given a first look at its newest Optimus Gen 3 humanoid robot when photos were found in the Tesla smartphone app.

Design files tucked inside a recent Android version of the Tesla app appear to show the third generation humanoid robot next to the older Gen 2.5 prototype. The assets were extracted from the app package by Tesla community member @wholemars, who posted the renders on X late Tuesday night before deleting them. The Tesla Newswire reshared the side by side comparison on Wednesday, and the images have circulated widely since.

Tesla Optimus Gen 2.5 vs Gen 3 comparison via @WholeMars on X

Tesla Optimus Gen 2.5 vs Gen 3 comparison via @WholeMars on X

The files are labeled “gen3” and were built as models for Tesla app’s own interface, as validated directly by Grok to be official.

The comparison shows a robot that looks built for a factory line rather than a lab bench. Gen 2.5’s exposed mechanical linkages and gold plating on the knees and shins are gone. In their place, Gen 3 uses matte black fairings on the lower legs, paired with a more contoured champagne gold body. Flexible covers now seal the joint where the torso meets the upper thighs, keeping bearings and moving parts sealed from debris and unnecessary contact.

The body panels fit more tightly, and the hands, which Tesla has said carry 22 degrees of freedom, look far more refined than those on earlier units.

This most recent leak fills a gap Tesla has left open for most of the year. Elon Musk said on March 31 that Optimus 3 was walking around but needed “some finishing touches” before it could be shown, a delay Teslarati covered when Tesla missed its first quarter reveal target. Musk later said Tesla would hold the design back until closer to production, partly to keep competitors from copying it. No reveal date has been announced.

The app itself has been preparing for Optimus for months. In July, code in the Tesla app pointed to a dedicated robot phone key, a consent screen for collecting video and spatial data while Optimus works inside a home, and an alert system for low battery and mechanical faults. Finished 3D models of Gen 3 suggest the interface owners will eventually use is moving past placeholder code toward something Tesla intends to ship.

Manufacturing is moving in parallel. Tesla tore out the original Model S and Model X lines at Fremont this summer to make room for Optimus production, with a planned capacity of one million robots a year. At Giga Texas, the steel frame of a dedicated Optimus factory is nearing completion ahead of a targeted 2027 start, with Musk pointing to an eventual output of 10 million units annually.

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Elon Musk

X changed how everyone gets paid, and this lawsuit shows why

X sued a Bitcoin account network over fake payouts as its creator pay model shifts

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Elon Musk’s X has taken a Bitcoin-focused engagement ring to court, and the case doubles as a receipt for how differently the platform pays creators today. The company filed suit in the High Court of England and Wales against Vivek Kumar Sen and Zamyang Sherpa, alleging the pair ran six accounts, including @Vivek4real_, @Bitcoin_Teddy and @TrendingBitcoin, as one coordinated operation to fake the kind of engagement that used to translate directly into money.

According to the filing, first reported by Gizmodo, the accounts posted near identical “BREAKING” crypto headlines seconds apart, in one case 11 seconds, then had three more handles like, reply to and repost the material to manufacture what X called “a false appearance of genuine, human communication and interaction.” X says the scheme pulled in at least £207,384, about $278,000, and pegs its own investigation and remediation costs at another £75,000. The accounts were suspended August 18. X general counsel James Burnham announced the case on X last weekend, writing that the company “will act forcefully to protect our platform and the earnings of genuine creators.” Musk’s own reaction, posted shortly after, was three words: “Don’t mess with 𝕏.”

The timing lines up with a a recent update to how X pays its creators. The program these accounts allegedly gamed, Creator Revenue Sharing, launched in mid 2023 and paid out based on how much a post got engaged with. Originality was never part of the formula, which is exactly how the platform ended up flooded with recycled clips, copy pasted “BREAKING” posts and replies engineered purely to farm reactions from paying subscribers.

X tried patching the model more than once, including an April cut to aggregator payouts and a March regional weighting change that Musk personally paused hours after it was announced. X retired Creator Revenue Sharing for good on September 7 and opened its replacement, Original Content Rewards, the next day.

The new math is stricter. Payouts now come only from qualified impressions, meaning unique Home Timeline views from Premium subscribers where at least half the post is visible, and replies no longer count toward eligibility at all. Copied posts, reuploaded media and reposts without meaningful changes are explicitly excluded. Allegra Jacchia, senior product manager for Creators at SpaceXAI, which now runs X’s product and AI work following xAI’s acquisition of the platform, put it bluntly, saying the goal is to reward creators who bring original ideas and perspective, “not those who have become best at gaming the system.”

Read that way, the lawsuit isn’t really about six crypto accounts. It’s X putting a dollar figure on what the old incentive structure cost, then suing to collect it right as the new one goes live. For live updates on how the case and the new rewards program shake out, follow @Teslarati on X.

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