From Fortune Magazine:



Elon Musk expressed frustration with the state of US financial markets, citing the high regulatory burden faced by publicly traded companies, pressure from shareholders, and the impact of passive investing on volatility. Musk has previously had trouble with regulators over his tweets about Tesla, leading to a $20 million fine and an agreement to clear future posts with an internal monitor. He also expressed concerns about passive investing, stating that it has gone too far and causes extreme market moves. Musk said he wouldn’t recommend companies to go public unless necessary, citing the pressure to avoid disappointing shareholders. He also highlighted the benefits of keeping SpaceX private in allowing him to take appropriate risks compared to Tesla. In addition, Musk criticized the passive investing trend and its impact on stock prices, suggesting that active investors are needed to balance the market. While Musk praised Vanguard Group founder Jack Bogle for bringing passive-investing into mainstream finance, he believes that passive investing has “gone too far” and causes massive movements in stock decisions based on a few active investors. Finally, ARK Investment Management’s Cathie Wood discussed her actively managed ETF and her admiration for Musk, with Tesla being the second-largest holding in the ARK Innovation ETF.



Original: Elon Musk tells Cathie Wood he wouldn’t recommend companies go public ‘unless they really have to’