I am a bit ignorant as to the mechanics of how this would work. Can anyone with the knowledge elaborate on what this means? Im thinking in terms of a few scenarios here:
1) I read this news and want to get on the Tesla train and throw all my liquidity into the current stock.
2) I already have x number of shares. What happens to them?
3) If I dissent, am I cut a check and told to hit the bricks?
4) is he going to need to raise capital to do this?
5) would the private company/person still be able to buy/sell "shares" on some off the stock market exchange?
Taking Tesla Private
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Re: Taking Tesla Private
#12If Tesla announces this (causing the stock to rise, since the suggested price is much higher than the current price), and then doesn't go through with it, is it considered stock manipulation? I don't mean to accuse them, I'm sure they covered their bases, but I'd like to understand how it works.
Re: Taking Tesla Private
#13Is this common? Would shareholders accept this?
Re: Taking Tesla Private
#14As an investor since 2012 I think Tesla would be far more operationally efficient private. Also a bit of schadenfreude but I've personally enjoyed watching Wall Street shorts collectively lose hundreds of millions of dollars over this.
Re: Taking Tesla Private
#15There was a HN discussion a couple of days ago complaining about companies going public much later. Could the short term quarterly horizon of public investors, as pointed out here, be a big reason companies don't IPO sooner?
Re: Taking Tesla Private
#16> As a public company, we are subject to wild swings in our stock price that can be a major distraction for everyone working at Tesla, all of whom are shareholders. Being public also subjects us to the quarterly earnings cycle that puts enormous pressure on Tesla to make decisions that may be right for a given quarter, but not necessarily right for the long-term.
> SpaceX is a perfect example: it is far more operationally efficient, and that is largely due to the fact that it is privately held.
Something that I can very well understand.
Re: Taking Tesla Private
#17While there's some good reasons here, I can't help but think this is more an emotional reaction on Elon's part, to the shorting and general negativity around the company.
Re: Taking Tesla Private
#18True story: I was standing on my back porch, finishing my morning coffee. It was one of those January Silicon Valley mornings where it can't quite decide whether its raining or not. Between the clouds, a rainbow appeared. From my vantage in the hills in South Fremont, the end of that rainbow sat squarely on the Tesla factory.
Being the sophisticated investor that I am, I know a 'buy' signal when I see one.
Here's to Elon and any Tesla employee who ever broke a sweat to deliver the pot of gold at the end of that rainbow.
Re: Taking Tesla Private
#19Guess Elon isn't too confident about being able to deliver the earnings he promised on.
Can you expand on that, please?
Re: Taking Tesla Private
#20He is bluffing trying to squeeze the shorts, no one rational can value it 82B unless it was waymo level tech.