101–110 of 290 posts
does this squeeze beats the VW one?
>First, I would like to structure this so that all shareholders have a choice. Either they can stay investors in a private Tesla or ...
given the potential number of shareholders wouldn't there still be pretty tough information disclosure requirements - isn't such required disclosure is among the major factors pushing companies into public market?
If public equity markets don't work, the alternative is more and more of wealth creation happening privately, in startups funded by VCs, private equity, or family owned businesses. The public won't get to participate.
Second, my intention is for all Tesla employees to remain shareholders of the company, just as is the case at SpaceX. If we were to go private, employees would still be able to periodically sell their shares and exercise their options. This would enable you to still share in the growing value of the company that you have all worked so hard to build over time. How does this work as a private company?
Typically companies in those situations have investors from earlier rounds that want to increase their holdings, and the board doesn't have a problem letting get a percentage or two of extra shares, so they create some kind of liquidity opportunity, with the company serving as an intermediary between the employees and the investors.
I don't like the guy (and it's obvious from my comments), but this move is brilliant on so many levels. The short sellers just got taken to the cleaners, badly . By taking the company private, he's under less public and regulatory scrutiny. It's probably easier for him to raise money privately, and there seems to be sufficient interest. Tesla's employees, who are probably pretty much worn out, got a nice pay day. And…
Earlier quoted context omitted.
> CNBC reports that none of the Wall Street banks it contacted were aware of any transaction or had committed to funding a leveraged buyout of Tesla.
So there's the real story. Who is this financer (or group) with ~40 billion in capital that is willing to bet long on Tesla? That's really interesting to me, if Musk is being truthful here.
Bezos?
Earlier quoted context omitted.
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.
> 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 operatio…
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.