Tesla CEO Elon Musk was interviewed by Ark Investment Management founder Cathy Wood on his social media platform on Thursday to discuss a range of topics. In this interview, Musk discusses the pros and cons of running a public company and jokingly suggests that the company is better off not going public.
When asked about his private companies and funding, Musk said he advises companies not to go public because of the legal burden that would result in the company being sued over and over again.
Musk said that as a public company, he would do everything in his power to make sure quarterly reports are good, saying it might be a moral obligation not to have a bad quarter and let people down. Musk said he has spent the past six or seven New Year's Eves at Tesla's delivery centers to meet his year-end goals.
Musk said his approach is to award stock to company employees. "I think Tesla has probably created the most millionaire employees in the history of the business," he said.
Asked about the possibility of Starlink or SpaceX going public, Musk said: "I don't think it's worth it to go public until you have an extremely stable and predictable revenue stream."
Musk also said that all the companies under his name have conducted more than 100 rounds of financing over the years and have never made investors lose money, unless of course they sold early.
Musk added that if you treat capital well, capital will treat you well.
Musk said that with his wealth and capital, he can fully fund Boring Company and Neuralink, but it would be good to have other investors involved.
"I think it's good to have other investors. Every investor you add is an ally, and having more allies is a good thing."
This also establishes a valuation for the company, Musk said, adding that having other investors and a valuation can help ensure employees who receive stock and options have access to liquidity in the future.