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?
Taking Tesla Private
51–60 of 290 posts
Re: Taking Tesla Private
#52Nothing on financing and an FT reporter said bankers close to Tesla knew nothing about it.
Re: Taking Tesla Private
#53I am a bit ignorant as to the mechanics of how this would work. Can anyone with the knowledge elaborate on what this means? Im thinking in terms of a few scenarios here: 1) I read this news and want to get on the Tesla train and throw all my liquidity into the current stock. 2) I already have x number of shares. What happens to them? 3) If I dissent, am I cut a check and told to hit the bricks? 4) is he going to need…
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.
Re: Taking Tesla Private
#54He 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. https://twitter.com/elonmusk/status/1026914941004001280
You are saying it isn't a bluff with evidence from the potential bluffer.
Re: Taking Tesla Private
#55who is gonna finance that 420USD buy-back ?
Re: Taking Tesla Private
#56Instead 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.
Tesla doesn't have money to buy shares back. It's not clear what does he mean by "taking Tesla private" and who would be providing the money.
Re: Taking Tesla Private
#57While 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...
Re: Taking Tesla Private
#58I 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, of course... he's the hero again.
Edit
Pure speculation, but could it be that this announcement might actually backfire on the $420 price?
Tesla's is one of the most shorted stocks, ever. The short sellers stand to lose immensely, so they'll try to close their short position as quickly as possible, thereby driving the price up higher -- possibly higher than the $420.
Re: Taking Tesla Private
#59Second, 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?
Private companies are still allowed to give share to employees. Employees are then allowed to sell their stock periodically (every 6 months in this case).
> Employees are then allowed to share their stock periodically (every 6 months in this case)
Some companies do periodic buybacks. Private shares can generally be sold at any time to accredited investors.
Re: Taking Tesla Private
#60This feels like a rushed announcement. First you throw out a tweet, later in the day you halt trading, then you make an announcement that you're "considering" something major, but that you haven't decided yet. Not only that, but Musk seems a tad bit paranoid. He's regularly talking about all those evil greedy short-term traders that attack the company -- which is a little silly since traders have given Tesla a larger…
I think he is more concerned about actual espionage, sabotage, manufactured bad press etc, than the stock price manipulation. That maybe indeed be paranoia or maybe he has seen it happening enough.