Instead of taking it private, what's stopping Tesla as a company from buying back shares from public market when the price is low? It not only stabilize the price it is also have long term benefit if the company is confident for the future.
Taking Tesla Private
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Re: Taking Tesla Private
#22TSLA up 7% on announcement, high of $370.79 If you're a short seller, beware the "squeeze." If you're not a short seller, this article can be an amusing read: https://www.reuters.com/article/us-volkswagen/short-sellers-...
If you're a heavy TSLA short-seller, you're already in deep trouble, unless this falls through very quickly. There will be margin calls. Welcome to the losing side of short-selling.
Re: Taking Tesla Private
#23This would have a side-effect of making all the short-sellers lose, which would be quite satisfactory to Musk.
Until Tesla's economics become obvious to all in the market, this is probably the best decision; this allows them to be more focused on the long run.
Re: Taking Tesla Private
#24Can someone please ELI5 this for me? Why is a private Tesla better? As long as Elon and employees own more than 51% of the stock (do they?), can't they not just ignore the stock price swings?
Re: Taking Tesla Private
#25TSLA up 7% on announcement, high of $370.79 If you're a short seller, beware the "squeeze." If you're not a short seller, this article can be an amusing read: https://www.reuters.com/article/us-volkswagen/short-sellers-...
If you're a heavy TSLA short-seller, you're already in deep trouble, unless this falls through very quickly. There will be margin calls. Welcome to the losing side of short-selling.
It only falls if Elon is bluffing. He’s guaranteed $420 / share.
Re: Taking Tesla Private
#26Ballsy. And nukes short sellers from the orbit as well even if it doesn't go through. It's the only way to be sure.
Re: Taking Tesla Private
#27In the Tesla case I feel that the shareholder concerns are pretty valid and provide an interesting counter pressure to Musk's "This is fine" attitude. Not saying either is right, but the friction is likely valuable.
I'd not want to be an investor in a private Tesla. It would seem way to volatile.
Re: Taking Tesla Private
#28He is bluffing trying to squeeze the shorts, no one rational can value it 82B unless it was waymo level tech.
This is no bluff:
> Investor support is confirmed. Only reason why this is not certain is that it’s contingent on a shareholder vote.
Re: Taking Tesla Private
#29This would have a side-effect of making all the short-sellers lose, which would be quite satisfactory to Musk. Until Tesla's economics become obvious to all in the market, this is probably the best decision; this allows them to be more focused on the long run.
It seems just the announcement, if nothing else happens, is twisting the knife on those shorts. The price is +25 today already.
Re: Taking Tesla Private
#30blaze it