would make a hell of a utility coin
Taking Tesla Private
181–190 of 290 posts
Re: Taking Tesla Private
#182Earlier quoted context omitted.
Tesla has also received a substantial amount of government support, including state and federal EV rebates for buyers of its cars (roughly $300 million), an extremely large handout from the state of Nevada ($1.3 billion), a large handout from New York ($1 billion), handouts from US Government ($500 million), carbon credits ($520 billion as of 2015). Collectively, Tesla's government support actually exceeds the govern…
> Tesla has also received a substantial amount of government supporting, including EV rebates for buyers of its cars. All automakers are eligible for this support...if they build electric cars. Ford and Tesla are the only automakers to have never declared bankruptcy. These are tiresome arguments that hold no water.
Which is why I edited my comment to provide more detail. It's not just the EV rebates, Tesla has also received substantial government handouts; on the order of billions.
Re: Taking Tesla Private
#183Would 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.
Financing on this scale would require a massive and likely quite lengthy undertaking if this is not a stop gap bluff it looks like they already have a buyer and it looks like all the usual suspects as far as financing goes are not involved.
Re: Taking Tesla Private
#184Earlier quoted context omitted.
> Tesla has also received a substantial amount of government supporting, including EV rebates for buyers of its cars. All automakers are eligible for this support...if they build electric cars. Ford and Tesla are the only automakers to have never declared bankruptcy. These are tiresome arguments that hold no water.
Which is why I edited my comment to provide more detail. It's not just the EV rebates, Tesla has also received substantial government handouts; on the order of billions .
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Re: Taking Tesla Private
#185Earlier quoted context omitted.
You still have to publicly reveal all the quarterly numbers, estimates for next few quarters, do all the GAAP accounting etc. which puts a lot of toll on a company that's going through wild swings in capital spending and production. If they don't keep their promises, the stock will crash, so everyone goes on a production death march close to the end of the quarter under extreme stress, instead of just growing organic…
Yeah, but why not just ignore a stock price crash if you don't need to sell and believe in the long term plan?
Every employee holds stock. I don't think every employee is in the position of never needing to sell. A price crash is bad for morale.
Re: Taking Tesla Private
#186Earlier quoted context omitted.
Isn't SpaceX success due to the fact that most of its orders come from the US government while Tesla has to compete in the free market and isn't that successful there?
That may be true, but the stability comes from it being privately held -- the SpaceX stock doesn't swing wildly every time some news about their competition with Boeing is released.
Boeing is publicly traded under the ticker BA...
Re: Taking Tesla Private
#187Earlier quoted context omitted.
Might be in the tens of billions before this is all said and done. (~34 million short shares outstanding * $420/share = ~14 billion dollars to cover. Is my math wrong?)
Wouldn't that assume that every short seller would lose $420 per share? They probably purchased their shorts at like ~$350 per share, so they'd only stand to lose 420-350=$70 per share, correct?
I'm a newbie when it comes to calls and puts, couldn't they just fill their shorts now (no pun intended, I seriously don't know the terminology) if they're worried about it? Tesla closed at $370.
Re: Taking Tesla Private
#188Earlier quoted context omitted.
Does that prove anything though? Let's imagine a bank is working on this deal; why would they tell a reporter? It's common for companies to deny things to the press even when they're true.
It's Wall Street and there would be rumors if someone was shopping the largest LBO ever. It's not like there are a lot of places you can go for this service, Tesla isn't going to back out on the deal because it leaked your bank has met with Elon.
Would there be rumors though, when improper disclosure could potentially be illegal and bring down the SEC on your head?
Also, even if there are rumors, why would that necessarily logically go from bankers talking to each other to immediately blabbing to the press?
Re: Taking Tesla Private
#189Earlier quoted context omitted.
Lots of things can go wrong with a deal this size, but yes, unless he's bluffing, this most likely will happen.
He has to find financing. There’s not that many entities that can finance a deal of this magnitude.
I wonder who Elon has been having dinner with over the last weeks/months...
I am sure hes already been lining up those who would want to do something - and it should be a clear sign about the Saudi position that was announced...
Basically, he's likely got House of Saud involved as they are flamboyant gamblers and would love to be associated with this if it succeeds, because the fame of this is worth more to them than the money at this point... so I am sure he already has the major financing arranged.
Re: Taking Tesla Private
#190I know Twitter is powerful, but its wild to imagine you're Elon Musk or Kylie Jenner or Donald Trump, you know that when you push send, the 280 characters you typed will cause millions of people to either smile or frown, lead to significant financial gains or losses, and set the course of news for the morning, day or week. That level of influence is crazy to think about.