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Does 1 share get you into the private company?

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Swampgator

Active Member
Apr 27, 2016
1,611
3,727
Florida
If Tesla offers current owners the option to stay in a private Tesla as Elon has said, Will there be a minimum size limit?
I don't own any TSLA but I'm thinking of buying a few shares just to have the option to join the private company's investors. Then I would assume you could pick up more at the liquidity events?
 
...current owners...

It depends on whether Tesla has secured the funding and if so how would it become a more exclusive club and crackdown "distractions" such as current low share ownership.

Secured funding is important because if it has not, it would need all the fundings it could get even from owners who have only 1 single share.

If it has, then it doesn't depend on owners who have low number of shares.

"Low" number of shares could be one, one hundred, one thousand or even ten thousand... There's no telling unless you are an insider.
 
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It should be no problems setting up the Tesla special purpose fund for 30,000+ employees/shareholders and include external shareholders. This includes Tesla Grohmann employees who choose to get shares over cash annually.
 
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...2,000 shareholders...

Thanks for pointing this out.

JOBS Act Increases Record Shareholder Threshold for Registration and Reporting

It sounds like the way to bypass this 2,000 shareholder limitation is have all 7,000 employees/shareholders registered with Fidelity SpaceX fund so that it is counted as only 1 single shareholder Fidelity instead of 7,000.

"...In other words, the JOBS Act does not “look through” brokers and other record holders to the ultimate beneficial owners of shares for purposes of determining whether the threshold number of shareholders is reached..."
 
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Thanks for pointing this out.

JOBS Act Increases Record Shareholder Threshold for Registration and Reporting

It sounds like the way to bypass this 2,000 shareholder limitation is have all 7,000 employees/shareholders registered with Fidelity SpaceX fund so that it is counted as only 1 single shareholder Fidelity instead of 7,000.

"...In other words, the JOBS Act does not “look through” brokers and other record holders to the ultimate beneficial owners of shares for purposes of determining whether the threshold number of shareholders is reached..."

The site made it a lot more clear. If Tesla designates a broker to hold all our shares, it will be counted as a single shareholder (with everyone who wants in declared as beneficial owners which the limitation does not apply to). One step closer to being privatized.
 
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