UPDATE: Tesla Inc. CEO Elon Musk says investors have convinced him that he shouldn't take the company private, so the firm will remain on the public stock markets.
    
The eccentric and sometimes erratic CEO said in a statement late Friday that he made the decision based on feedback from shareholders, including institutional investors, who said they have internal rules limiting how much they can sink into a private company.
    
Musk met with the electric car and solar panel company's board on Thursday to tell them he wanted to stay public and the board agreed, according to the statement.
    
In an Aug. 7 post on Twitter, Musk wrote that he was considering taking the company private. He said it would avoid the short-term pressures of reporting quarterly results.

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Tesla shares are falling as investors deal with another surprising development surrounding CEO Elon Musk.

Musk admitted in an interview with The New York Times that stress is taking a heavy toll on him. The company has been under pressure to increase production of its Model 3 sedan, and Musk said that he was working up to 120 hours a week and sometimes takes Ambien to get to sleep.

Musk raised a ruckus last week when he tweeted that he might take Tesla private. The tweet reportedly has spurred an investigation by securities regulators.

Tesla shares fell 3.6% to $323 in early trading.

Musk is known for odd behavior and controversial statements, but investors have stuck with him and driven Tesla to a higher market value than General Motors.

Tesla is forming a special committee to evaluate proposals to take the company private one week after CEO Elon Musk said he was considering it.

The committee, made up of three independent directors, said Tuesday that it has not received any formal proposal from Musk.

Musk tweeted on Aug. 7 that he had "funding secured" to buy Tesla shares at $420 per share.

That tweet may have created a sticky situation for Musk as it appears the funding may not be locked up yet. According to Musk, the tweet followed a meeting with Saudi Arabia's Public Investment Fund.

Shares of Tesla Inc. jumped 11% in a day, raising the value of the company by $6 billion.

That's led to at least two class-action lawsuits alleging securities violations.

Musk says in a blog posted Monday that most of the funding would be in stock rather than debt. Musk says he expects that one third of shareholders would sell.

Musk says he left a meeting with wealth fund officials July 31 with no question that the deal could be closed. That's why he tweeted on Aug. 7 that funding had been secured. Musk wrote that since Aug. 7, the fund's managing director has expressed support subject to due diligence.

Musk's tweet came two weeks after Tesla revealed it had burned through $739.5 million in cash on its way to a record $717.5 million net loss in the second quarter, as it cranked out more electric cars.

Tesla has spent millions as it reached a goal of producing 5,000 Model 3 sedans per week by the end of June. The company says production is rising, with the goal of 6,000 per week by the end of August.

Musk's other company, aerospace firm SpaceX, is privately owned.

(Copyright 2018 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)