[deleted]
Taking Tesla Private
121–130 of 290 posts
Re: Taking Tesla Private
#122If Elon is guaranteeing a $420/share buyout - are there any downsides to buying as much stock as possible right now? Would the only risk be that this whole plan falls through or that Elon ultimately decides against that price?
Thats correct. Which is why you see that the current stock price is currently spiking, as people rush to get the "good" deal for free money.... Which means that as the stock gets closer to 420$, the amount of "free" money quickly goes away.
Re: Taking Tesla Private
#123Earlier 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.
Short sellers aren‘t evil. They are a mechanism how the public trade exchange improves its estimate how much a company is worth.
After the very ugly financial news over the last months (but probably true — nobody has credibly refuted them), it‘s not hard to see why Musk and the less rational part of his supporters would love to see short sellers disappear, and „punished“.
Re: Taking Tesla Private
#124While 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.
I seriously doubt $70bn are changing hands because someone got "emotional". In my understanding, this is a great deal for Tesla, the key question is how Musk got the enormous amount of money to pull this through...
Emotions are a perfectly acceptable reason to initiate a $70 billion deal. It's important that the emotions line up with the logic and reason, but in this case, they do seem to align.
Re: Taking Tesla Private
#125Guess Elon isn't too confident about being able to deliver the earnings he promised on.
Can you expand on that, please?
Wall Street investors and analysts focus heavily on the bottom line. Elon believes that the work Tesla is doing requires more time, sustained attention, and focus than public investors have tolerance for. Furthermore, he thinks the volatility demotivates employees.
These are all completely true, and very reasonable, but do show (at least to me) that the near-term promises regarding profitability he made at the last earnings call are probably in jeopardy.
Thank you for asking for a clarification rather than just knee-jerk down voting, though. :)
Re: Taking Tesla Private
#126No external financing might be necessary , because virtually all Tesla shareholders today (i.e., people who are net-long the stock) are true long-term believers in Musk's vision unconcerned with the company's short-term financial issues. (People who are concerned with financial issues are either avoiding the stock or shorting it.) These true-believer shareholders will want to hang on to their shares as the company go…
That might be how this is actually gets financed :). The shorts borrowed from institutional investors who have 0 reason to make them whole and can now take them to the cleaners.
Re: Taking Tesla Private
#127Earlier quoted context omitted.
This is no bluff: > Investor support is confirmed. Only reason why this is not certain is that it’s contingent on a shareholder vote. https://twitter.com/elonmusk/status/1026914941004001280
You are saying it isn't a bluff with evidence from the potential bluffer.
He would be liable for Market manipulation and securities fraud if this was not true.
Re: Taking Tesla Private
#128I couldn't be more supportive of this idea. I am so tired of seeing Tesla scramble to meet shareholder expectations which are almost always short-sighted.
Re: Taking Tesla Private
#129Earlier quoted context omitted.
read the article?
You mean the email? "...I fundamentally believe that we are at our best when everyone is focused on executing, when we can remain focused on our long-term mission," => what difference does private or public make for this?
I still don't think you've read the full email. He explains elsewhere in the email the answer to your exact question
Re: Taking Tesla Private
#130Earlier quoted context omitted.
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.
Totally, totally random thought, but I figured I'd record it, even though it doesn't seem to make sense. Bezos?
What, timed with an announcement of a merger between Blue Origin and SpaceX? :)