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Elon hints he'll buy back shares and "taking Tesla private"

Discussion in 'TSLA Investor Discussions' started by jkirkwood001, Aug 7, 2018.

  1. bhzmark

    bhzmark Supporting Member

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    #101 bhzmark, Aug 8, 2018
    Last edited: Aug 9, 2018
    If it normally takes a year, Elon will target doing it in two months, it will actually take three months, and everyone will complain that he missed his target.
     
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  2. adiggs

    adiggs Active Member

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    Elon Time.
     
  3. voyager

    voyager Member

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    If Musk feels empowered to do this because of Saudi "The Evil Empire" Arabia taking a stake in Tesla... he might want to consider because of 'oil interests' seeping through in Tesla's long-term strategy.
    Tesla shares rise on report Saudi Arabia sovereign wealth fund has $2 billion stake

    Also because of Canada's quarrel with the Saudis, who terminated all investments in Canada because a Canadian minister was brave enough to speak her mind.
    All you need to know about the escalating diplomatic row between Saudi Arabia and Canada
     
  4. dondy

    dondy Member

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    Why on earth somebody would think Elon would take Saudi money?

    Insane.
     
  5. dondy

    dondy Member

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    Why? There are no laws governing that. You like generating FUD, welcome to your world. Keep on guessing.
     
  6. matejpi

    matejpi Member

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    Hello,

    I am new here (long time lurker) and having some Tesla shares (want to be super long investor) I have some questions:
    • When Tesla goes private, will it be possible to buy additional shares afterwards? Or they will restrict buying new shares to only Tesla employees and "institutional investors"?
    • When owning Tesla private shares does that mean that you will be able only to sell them?
    • When owning some private shares does this give you the right to buy additional shares every x months?
    • As beeing non-us citizen, how do I buy additional shares trough Fidelity or other "institutional investors"? Is this even possible for foreign citizens?
    Thank you for your answers.
     
  7. jkirkwood001

    jkirkwood001 Member

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    I don't understand one of the issues repeatedly raised here - impact on retirement plans.

    Now maybe the rules are different here in Canada than US, but here, the investment is different from the account. You can buy and sell shares between different investments and no capital gains are triggered unless you take the money out of the account.

    So what's the big problem for retirement plan (401k, right?) holders? Sure maybe the plan can't hold private shares, buy at least they can sell (at a profit) and reinvest those funds into another green company or ETF, keeping it in the same retirement account, no? This would have no tax implication here in Canada.

    (BTW, can anybody in Canada confirm if we'll be able to keep private shares?)
     
  8. mongo

    mongo Well-Known Member

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    The big problem is not being able to keep their Tesla investment due to the private share issue you call out. They don't want shares in a different green company, they want Tesla.
     
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  9. jkirkwood001

    jkirkwood001 Member

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    Ok, but I cannot characterize that as a "big problem". They're not losing money. Maybe that's "sad", but not a problem - there's nothing they have to solve or workaround in order to not lose their retirement. The way the threads have read, it's like "what are these poor retirees going to do who've lost their investment??" They haven't. Thanks for the clarification, @mongo.
     
  10. Earlian

    Earlian Member

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    Seagate to go private in $20 billion deal

    So regarding how it went with Seagate, they got private and later did an IPO again in 2002.

    What is interesting in regard of the stock price is that before going private they had also faced enormous ignorance and the buyout brought the stockholders a 24% premium for a stockprice of 72$.

    BUT after only a short period of time, Seagate went public again (IPO) and then it started at 5$ for some years.

    I suspect there was a kind of converting while they were private?!?

    Because if not, the stockholders who went through with the struggle lost a big amount of money (72$ /share -> 5$ /share and traded in a range of 4-24$ since the following 9 years).:eek:

    Seagate Technology (STX) - 16 Year Stock Split History

    Please can someone with more insight shine some light on this...

    Thx in advance.
     
  11. mongo

    mongo Well-Known Member

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    It that sense, I agree with you. In terms of the vote/ overall senario though, people who have been planning (hoping) on an Apple sized market cap/ stock price down the road for retirement and have ridden out the dips are likely not going to be voting to sell their shares at $420.

    If your retirement plan for the past 5 years has been the rise of TSLA, and you can't stay in, that is a big issue for them. Other investments would have been better.
     
  12. neroden

    neroden Model S Owner and Frustrated Tesla Fan

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    Crossposting from the "fact or fiction" thread because this article is basically fact, and relevant...

    There’s a big problem with Elon Musk’s plan to take Tesla private

    Ignore most of it but focus on this:

    Tesla doesn't really have a problem with producing quarterly financial reports. Tesla has a problem with short-sellers, options traders, stock speculators, noise traders, etc. Delisting the company solves the problems, even if the company is technically "public" for reporting purposes.

    I hope that this is Tesla's plan: remaining "public" for SEC purposes but delisting the shares and imposing a restriction so they can't be traded (adding a right-of-first-refusal for any sales like SpaceX has).

    This would eliminate all the noise trading but retain full transparency.
     
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  13. ggr

    ggr Roadster R80 537, SigS P85 29, M3P 80k

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    The price of the IPO shares was unrelated to the price of the shares at the time they went private. Literally, there is no relationship. At IPO time they chose a number of shares to issue and a target share price to establish a target market cap.
     
  14. mongo

    mongo Well-Known Member

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    Sure, but the value when going private and value of the IPO were quite different. That seemed strange to me unless the had sold off assets.
     
  15. PremiumPackage

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    Let's try to inject a little sanity into the situation:

    Elon Musk’s Pitch to Take Tesla Private Has Wall Street Salivating

    One thing the article touches on but needs to be emphasized - firms like Fido and T. Rowe almost certainly hold these shares across a number of mutual funds. Those funds have strict guidelines on what they can and cannot invest in, and the "cannot" will include things like unlisted equities.
     
  16. DriverOne

    DriverOne Supporting Member

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    Am I crazy or is this $350-ish a great buying opportunity? Someone has told us they will buy the shares for $420. In 6-12 months there's a 10-15% gain to be had, with seemingly little risk.
     
  17. mongo

    mongo Well-Known Member

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    Yep, unless the deal doesn't go through. Then all you have is shares in an awesome company...
     
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  18. emupilot

    emupilot Active Member

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    I sold a couple Jan 2019 380 covered calls for $31.50 when the stock price was at $360. I lose out on $8.50/share profit if the buyout goes through (or more if the buyout price goes up) but can buy back the calls if the deal falls through and the stock price drops. If anyone is thinking about buying in now to cash out at $420, this might be a good way to cover yourself if the deal falls through.
     
  19. mongo

    mongo Well-Known Member

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  20. electracity

    electracity Active Member

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    I agree. Musk is not an idiot. No critic has brought anything up that his strategists and lawyers have not considered.
     
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