This whole conversation 'will end in the next year with Tesla going private,' Gene Munster says

  • Tesla founder Elon Musk has been under scrutiny since he took to social media to announce he may take the automaker private, but Loup Ventures' Gene Munster says that's exactly what will happen within a year.
  • Munster says Musk has likely wanted to take Tesla private for a while, but has been fighting to remain public.

Tesla founder Elon Musk has been under heavy scrutiny since he took to social media to announce he may take the automaker private, but Loup Ventures' Gene Munster says that's exactly what will happen within a year.

"Like all Tesla stories, it's going to be a wild ride here," the venture capitalist said on CNBC's "Squawk Box." "I think this whole conversation is probably going to take three months, and ultimately, we think it will end in the next year with Tesla going private."

Tesla has battled widespread scrutiny in the week following Musk's tweet that he was planning to take Tesla private and had "funding secured." The SEC reportedly intensified inquiries into Tesla based on Tuesday's tweet, which may have violated a rule that prohibits publicly traded companies from announcing plans to buy or sell securities if executives don't intend to follow through. In a blog published Monday, Musk attempted to clarify that his claims about secured funding was based on repeated and ongoing conversations with Saudi Arabia's sovereign wealth fund.

Munster, speaking before Musk's blog post published, said Musk has likely wanted to take Tesla private for a while but has been fighting to remain public. Press and shareholder scrutiny surrounding Model 3 production goals likely hastened Musk's ambitions.

"At the point when they were massively running to hit that 5,000 [a week production] number, at that point they were working hard to still be a public company. And I think some of things that happened around that 5,000 attempt, the scrutiny around it, I think a lot of negativity maybe had an impact," Munster said.

"Even though Musk has had an ambition to being private for a long time, I think that has become more acute in the last month and a half," he added.

Munster called the talks around going private a "side-show," but he said it will likely happen within the next year, bolstered by its summer performance.

"The June results, September guidance, the demand for Model 3, and the bigger vision of the story will ultimately move this higher, whether is it a public or a private company," Munster said.