TL;DR If Tesla goes private, it may inadvertently force a lot of long term shareholders to sell some/all of their position. I've been a believer in Elon and Tesla's mission for over five years now. I can comfortably claim that I am a true long term investor, having slowly (and painfully) accumulated a long position over the years without ever selling a share. Over the years I've spent thousands of hours researching and obsessing over every detail, and truly believe the upside is far beyond $420 in the longer term. Through the thick and thin, ups and downs, it's been tough but I've stayed disciplined and only ever timed the markets to decide entry points for new savings I want to deploy. I've spent the evening brainstorming how this conversion to a private company will affect my holdings as a Canadian and it's not looking good. Possible Investor showstoppers to staying invested: - Are only "accredited investors" eligible for the private investment vehicle? This would require a net worth (excluding residence) of $1 million or $200k income. - Does your brokerage support the private investment vehicle or will they have trouble settling/clearing the conversion? This could be a concern for those with workplace restrictions on investments/brokers. - Anyone who is using any margin for leverage will likely be forced to liquidate some of the position. However, given the nature of risks with margin accounts I don't think it's too unfair. Canadian (and other International) Investors: - Are Canadian and other international investors eligible to convert to the private at all? - Can your brokerage support/clear/hold a US private investment vehicle? Assuming those concerns are not an issue, there's still the problem of registered (tax-sheltered) accounts. I have TSLA in my "normal" non-registered brokerage accounts, my Registered Retirement Savings Plan (RRSP) account, and my Tax Free Savings Account (TFSA). The private investment vehicle will almost certainly NOT be eligible for the RRSP or TFSA in Canada (Designated Stock Exchanges). I understand programs like the Roth IRA are similar in nature to these Canadian accounts so there may be similar implications for Americans, but I don't know anywhere near enough to comment. "RRSP" Account (Tax Deferral Account: Contribute pre-tax income, withdrawals count as taxable income when you take it out at retirement) - Forced to liquidate at $420, this cash is tied up in the account. - Moving shares or cash outside this account would trigger severe tax consequences, a 10-30% immediate withholding tax + income tax at your marginal rate. For non-retired working class in Ontario that's a net 30-83% tax hit which makes this an unrealistic option. "TFSA" Accounts (Tax Shelter Account: Contribute post-tax income, gains inside are not taxed) - Could withdraw outside the account and hold the private without the tax benefits on subsequent gains, which could be significant disadvantage in the long run. Summary In short, at best I will be able to hold private shares in some accounts but for tax-sheltered accounts I will likely be forced to liquidate (or take an unpalatable 30-83% penalty pulling shares/cash out to stay invested in the private shares). A really depressing day for me with this announcement, after years of planning and accumulating I don't want to be forced out of a large chunk of my Tesla investment at a paltry $420.