Tesla isn’t going private after all.

In a statement late Friday night, Elon Musk, the electric-car maker’s chief executive, said he and the company’s board had concluded that they would not turn Tesla into a privately owned company.

The move halts a process set in motion by Mr. Musk in a Twitter post on Aug. 7. The reversal is the latest upheaval for the company, which has struggled with production challenges for its first mass-market car, the Model 3.

“I knew the process of going private would be challenging, but it’s clear that it would be even more time-consuming and distracting than initially anticipated,” Mr. Musk wrote in a statement that Tesla posted on the company’s blog shortly after 11 p.m.

“After considering all these factors, I met with Tesla’s board of directors yesterday and let them know that I believe the better path is for Tesla to remain public,” he said.