According to the news on BloombergHT, Elon Musk, speaking in an interview with ARK Investment Management Founder Cathie Wood on the X platform, complained about the regulations (legal and administrative controlled taxes) faced by public companies, arguing that pressure from shareholders reduces efficiency and passive index investment increases volatility.
"THERE IS INTENSE PRESSURE ON PUBLIC COMPANIES"
Musk, CEO of high market capitalization companies such as Tesla and SpaceX, said, "There is intense pressure for the public company not to have a bad quarter. This can result in less efficient operations. The time horizon between investors and the long-term vision of companies does not match."
Stating that passive investments following indices such as Exchange Traded Funds (ETFs) have reached very large scales, Musk said, "At the end of the day, someone makes an active investment decision. Passive investors act according to the decision of active investors. As a result, huge share movements occur according to the decision of four or five active investors."
Musk acknowledged that Tesla has easier access to capital by being publicly traded, while SpaceX is closed to the public, allowing them to take higher risks.
