SSonnentag
埃隆•馬斯克
Could someone translate this into layman terms?
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For Tesla, it means that they can focus on growing their business in the most efficient way possible. A private Tesla does not need to peak production at the end of each quarter, perform financial gymnastics to satisfy Wall Street.Could someone translate this into layman terms?
For Tesla, it means that they can focus on growing their business in the most efficient way possible. A private Tesla does not need to peak production at the end of each quarter, perform financial gymnastics to satisfy Wall Street.
The other bonus is that there wouldn't be a financial incentive for short sellers to unleash negative articles, headlines, etc. on a daily basis.
That I can understand, but what about the, "My hope is *all* current investors remain with Tesla even if we’re private. Would create special purpose fund enabling anyone to stay with Tesla. Already do this with Fidelity’s SpaceX investment." from Elon? How would that work?
I have my shares split between TFSA and an RRSP.
Kinda torn on this TBH. While I like the idea of going private to get rid of all the negative press, going private means less public info from Tesla, at least in regards to production.
Plus, a 420 buyout is the highest price I could get for my shares thus far. On the flip side: I’m fairly confident that’s not the highest that stock will go.
*sigh* I welcome opinions on this, although I’m leaning towards keeping all my shares right now.
Looks like this is happening... Wow!
Anyone have any idea how this would work if you decide to keep your shares, but own them in your TFSA or RRSP?
Companies come to the capital markets to obtain funding and grow their businesses. If Musk has the funding he needs, what point is there to have a public listing, particularly with everything he’s noted as distractions.
It may sound like potentially the largest LBO in history of ~$70B but with private equity dry powder clocking in at $1.3T (feel free to take this with a grain of salt), I think there could be quite the possibility that he’ll take Tesla private. No quarterly calls, no more making decisions based on short-term horizons, no more trying to appease global equity market analysts and their investment houses. Knowing that PE firms are not interested in making a mere 100% and are gunning for multiples on their investments, perhaps they see an opportunity that not many others presently do.
I love my Tesla car and I think most of those short sellers are unethical, but...Exactly. The public markets of become extremely onerous in terms of regulation & reporting. It's clear that Elon is personally miserable in having to deal with that nonsense. Imagine... no quarterly meetings; no short sellers tossing FUD; no quarterly sales drives; no pressure to deliver short term results. It won't be a panacea, but Tesla has a longer term focus, and that's just not something that the public markets deal with very well.
Even if things go very well in the future I doubt that any investors will be receiving much cash flow in the, as you put it, "next few (profitable) years". Tesla may start earning positive "operating profits" but I don't know that they will be true GAAP profits for a while. And given their growth plans I doubt that they will be cash flow positive for a decade, as building several more gigafactories, car production factories, etc. requires a lot of initial capital investment.I highly doubt that Musk on a whim decided to illegally tweet false information in order to bump up stock prices (that were rising in high percentages anyway). It seems fairly clear to me that he has the backing of a major investor (or multiple investors) who would like a nice interest payment for the next few (profitable) years. His alluding to the severe burn for shorts is likely, in retrospect, evidence of such. Nice of him to warn them.
We don't really know how it would work but oftentimes these private structures have onerous requirements, like requiring you to be an accredited investor (net worth > $1M, etc) and they can be harder to do across borders, meaning that such an investment may just be available to Americans.That I can understand, but what about the, "My hope is *all* current investors remain with Tesla even if we’re private. Would create special purpose fund enabling anyone to stay with Tesla. Already do this with Fidelity’s SpaceX investment." from Elon? How would that work?
If it goes private will it still be tfsa eligible?
I started a thread about this in the Investors section "Going Private = Forced Liquidation" for many Investors
I did a bit of research last night and from the sounds of how it's planned to go down, it will not be TFSA nor RRSP eligible for us. Here's a list of Designated Stock Exchanges that are eligible and if it goes private it will not trade on those. There's a possible exemption for public Canadian companies that go private, but that's obviously not the case here
Exactly. The public markets of become extremely onerous in terms of regulation & reporting. It's clear that Elon is personally miserable in having to deal with that nonsense. Imagine... no quarterly meetings; no short sellers tossing FUD; no quarterly sales drives; no pressure to deliver short term results. It won't be a panacea, but Tesla has a longer term focus, and that's just not something that the public markets deal with very well.
Not sure I buy the logic that it has been miserable for Musk to deal with running a public company. Firstly, the company has been able to raise over $4 billion in equity, at valuations only really possible because of the willingness of the public markets to buy into a really good story that was often not backed up by fundamentals. Secondly, he's very much the architect of his own misery by his lack of discipline when it comes to making rash promises and projections that he must know are not achievable, not to mention simply running his mouth when it would be better for the company if he stayed away from twitter. He has basically run one of the most successful stock promotions in history. In a way he's a lot like Trump -- he seems to thrive in the chaos about which he spends a lot of time complaining
Not to mention that it's hardly plain sailing running a private company with over 500 shareholders, since you are forced by the SEC to comply with lots of similar reporting requirements. As others have also mentioned, private companies can't sell stock to random people off the street. You generally have to be an accredited investor, which rules out many retail investors who could currently buy TSLA.
Don't get me wrong, there is a lot to like about Tesla as an investor. The brand is hugely valuable and despite the iPace, e-Tron, etc., they do have a very big lead in electric vehicles. But this doesn't mean that the company is not constrained by the realities of needing to produce vehicles profitably, telling the truth about its future plans (Tesla Semi, Solar Roof? -- both basically sidelined as far as the reality of having a production line in the case of the former and customers being able to buy them in the case of the latter).
Sadly we live in a world in which everyone has to be 100% for something or 100% against it. My view is I generally like Tesla, but Musk is becoming somewhat toxic for the company, and it's just not right that he's allowed to make false or misleading statements with impunity.