Tesla’s bid to go private would have been backed by several investors, one of them reportedly being Volkswagen aside from the Saudi Arabian sovereign wealth fund. Chief executive officer Elon Musk said in the company’s statement last Friday that he and the company’s board decided against going private.

A move to take Tesla private would have required a buyout of the mutual funds that hold significant stakes in the electric car maker, notes The Wall Street Journal. A proposal was made to Musk in short order, one which listed investors – including Volkswagen and Silver Lake – who had agreed to contribute up to US$30 billion (RM123 billion) for the privatisation of Tesla.

Musk was reportedly less than pleased with the proposal as it meant he would have to give up at least some of the control he currently has over the company, as well as being wary of other automakers owning a share in Tesla. The CEO decided to halt plans for privatisation on the back of opposition from the company’s current investors, as well as his own belief that remaining public is the best way forward.

“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,” CEO Musk said in an e-mail to The Wall Street Journal.

Musk, along with his board and the company itself has attracted the scrutiny of of the US Securities and Exchange Commission, following his take-private tweet at US$429 per share and a claim that funding was secured. The Palo Alto-based company has not reported an annual profit since its founding in 2003, a New York Times report said.