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Taking Tesla Private

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Re: Taking Tesla Private

#131

Post by ChicagoDave »

S_A_P wrote: post #53
ChicagoDave wrote: post #40

Earlier quoted context omitted.

If a majority votes to take the company private, you would have the option of selling or accepting private stock (some non-voting class I'd assume) that you can trade. Voting class stock would be only offered to investors with >X% current holdings, probably the 5% the Saudi's just purchased. Employees may have a third class stock. As an investor, you'd be given paperwork to sell or accept the new stock in exchange fo…

Thanks. Your last sentence seems to sum up the motive here in my opinion, not so much to screw the short sellers, but to limit/stop the ability of them to influence the value of the company through whatever means.

Oh I wouldn't discount Elon's interest in screwing the short-sellers. There's ample evidence of his disdain for these people and even if you're bearish on Tesla, I think a lot of the short-sellers are fueled by oil & gas interests, so Elon's ire is not unwarranted.

I don't think the media portrays this battle appropriately. Tesla is the #1 enemy of the combustion engine supply chain and that is no small thing.

Every single auto parts store, every car manufacturer that does not sell EV's, and especially the oil & gas industry is at risk of Tesla's success.

This is a titanic battle. Don't anyone ever forget that.

Re: Taking Tesla Private

#133

Post by nine_k »

southerndrift wrote: post #109
nine_k wrote: post #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 operatio…

Going private, wouldn't it be a bigger distraction for everyone working at Tesla to wonder whether they can find a private buyer or not for their shares and what their shares are actually worth?

Won't the company agree to buy their granted shares at a fixed price? (I don't know; there can be wildly different arrangements).

Re: Taking Tesla Private

#134

Post by martin_bech »

dogma1138 wrote: post #102

Would an Apple buyout be considered them going private if they are kept as a separate entity? It’s the only one with enough money to buy them that I can think off.

Apple could do it with cash, but a lot of others could do it with some form of financing. A leveraged buyout.

Re: Taking Tesla Private

#135

Post by peeters »

11thEarlOfMar wrote: post #115
peeters wrote: post #35

The main question I have is about financing. If Elon owns 20% of the company now, and he doesn't intend for that to change, and he is giving the option of public shareholders to sell at $420, then who is financing this? Usually a private takeover requires a partnership with a huge private equity firm. Wouldn't releasing this without having (or identifying) that partner be premature? And wouldn't the resulting stabili…

Could be anyone from Masayoshi Son to Yuri Milner to Blackstone. Or a consortium of several. They wouldn't have to come up with the full valuation, only need enough to buy out those who wish to sell. Articles/Bylaws would likely give Musk control, even though he only holds 20%.

> Articles/Bylaws would likely give Musk control, even though he only holds 20%.

But Articles and Bylaws can be rewritten at the whim of the majority shareholder, no? I don't doubt that's how it would be initially structured (otherwise it would just be a hostile takeover) I'm just saying it's putting Tesla's future in the hands of whoever holds the most shares.

Re: Taking Tesla Private

#138

Post by orcdork »

gameswithgo wrote: post #106
ckastner wrote: post #58

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…

Just go ahead and like the guy!

He's smart, and also a monumental dickwad. I'd expect people that dislike him to do so for the latter, not the former. (i'm on that boat too)

Re: Taking Tesla Private

#139

Post by takeda »

LOL at $420/share I think he wants investors to chill out.

Anyway, since I own some shares will miss their stock, since I truly believe in them, but I guess this is better for the company.

Re: Taking Tesla Private

#140

Post by donald123 »

FabioFleitas wrote: post #51

If Elon is guaranteeing a $420/share buyout - are there any downsides to buying as much stock as possible right now? Would the only risk be that this whole plan falls through or that Elon ultimately decides against that price?

There are many factors that could affect this. There is no words of the source of the fund, although people believe he already has that secured. And all shareholders have to vote. The last and most important is when this would actually happen.
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