Holding shares in a private Tesla outside the US

[elliott82]

Just got a call from my german bank (comdirect). They basically said it's too early and they don't know. They said however converting the shares to private equity would be a taxable event.

Personally I had the feeling he had no clue, also was rather dismissive about Elon: " Ich weiß nicht was das wieder für ein Hirngespinst von Elon Musk ist" translates to something like: "I don't know what kind of phantasy of Elon Musk this is again".

Jeeeez...

 

[replicant]

Just got a call from my german bank (comdirect). They basically said it's too early and they don't know. They said however converting the shares to private equity would be a taxable event.

I would consider changing bank.

 

[Nightshifter]

I just wonder, what difference this makes in the current "turbulance" opening an US trading account or stay in Europe. My shares are all: Lagerstelle NewYork
a) Bought and holding shares on the Nasdaq via European Trader
b) Bought and holding shares in Frankfurt or any EU Place via European Trader, like flatex, etc.

Thanks for any light on this topic.

 

[Lessmog]

Hi all, I got a response to my query to Handelsbanken, where I hold some of my TSLA. They regret to inform me that they no longer give stock advice/analyses from their local offices but only as published on the bank's website for customers to read, and then only for the home market of SE, DK, NO and FI, of which Tesla is not a part obviously. But they will inform me of the terms once those are published, for example whether any participation can be held at my depot in the bank.

Not bringing much light. But there we are.

 

[elliott82]

I would consider changing bank.

Yeah I thought about that. Any suggestions?

 

[Runarbt]

Received a reply from Schwab after asking if I could create an account as a Norwegian citizen/resident: "I am sorry to inform you that due to regulatory restriction, we are unable to open an account for you based on your country of residency. Schwab is committed to ensuring it is in compliance with all laws and regulations, including those that could be applied by foreign governments. As a result, certain products and services may not be available in every jurisdiction or country such as yours."

Thats weird, as I have had a Schwab account for a year. Trading options, and plan to move my TSLA from Netfonds.no to Schwab.

I got transfered from optionsxpress to schwab a while ago, that might have opened a loop-hole for me?

Edit: It was OptionsXpress - for some reason they didnt use the "e" in express. ;-)

 

[lklundin]

Personally I had the feeling he had no clue, also was rather dismissive about Elon: " Ich weiß nicht was das wieder für ein Hirngespinst von Elon Musk ist" translates to something like: "I don't know what kind of phantasy of Elon Musk this is again".

Jeeeez...

Tell him to put his money were his mouth is, i.e. let him borrow your shares for the going rate, so he can sell them back to you.

 

[avoigt]

I just wonder, what difference this makes in the current "turbulance" opening an US trading account or stay in Europe. My shares are all: Lagerstelle NewYork
a) Bought and holding shares on the Nasdaq via European Trader
b) Bought and holding shares in Frankfurt or any EU Place via European Trader, like flatex, etc.

Thanks for any light on this topic.

If you bought regardless with what broker or bank shares that are located in New York I do not see any difference between a and b. Your mail is not quite clear to me though as you first say you shares are in NY and then "holding" them on Nasdaq or in Frankfurt. I guess you mean they are in NY and you bought via Frankfurt or Nasdaq.

The key and still unanswered question I have is, if the privatization happens and I expect it will, does the location of shares have any influence on my/our ability to receive private shares? Thats something we likely know ones Tesla put the agreement on the table and not before. At that time it can be too late though.

Feels better to have voting abilities because first I want to say yes or no to the privatization and that looks like to be different given where our shares are located. Secondly as of now Tesla may not know that I am a shareholder but they will if I can vote.

Although my bank wrote that I just need to pay a fee of $150 and the clearing in NY will inform me I am still not 100% convinced. For that reason I called them today for a definite written confirmation that I am able to participate.

 

[avoigt]

I would consider changing bank.

If a banker gives you tax advice other than related to Abgeltungssteuer here in Germany than I would consider him not trustworthy.

Actually he cannot know as we do not know how the structure of the deal looks like. The devil may be in the details here.

 

[RedSquirrel]

Thats weird, as I have had a Schwab account for a year. Trading options, and plan to move my TSLA from Netfonds.no to Schwab.

I got transfered from optionsxpress to schwab a while ago, that might have opened a loop-hole for me?

Edit: It was OptionsXpress - for some reason they didnt use the "e" in express. ;-)

How is your experience so far with Schwab? I'm considering going there as well. But I don't trade options. I'm just following a buy and hold strategy for stocks.

 

[elliott82]

If a banker gives you tax advice other than related to Abgeltungssteuer here in Germany than I would consider him not trustworthy.

Actually he cannot know as we do not know how the structure of the deal looks like. The devil may be in the details here.

Yeah he was talking about Abgeltungssteuer and emphasized we should wait for more details.

 

[Runarbt]

How is your experience so far with Schwab? I'm considering going there as well. But I don't trade options. I'm just following a buy and hold strategy for stocks.

Very good. Quite responsive on chat for customer support. Good webdesign. Propper web security. Almost a bit too much. ;-)

 

[svennpetter]

Thats weird, as I have had a Schwab account for a year. Trading options, and plan to move my TSLA from Netfonds.no to Schwab.

I got transfered from optionsxpress to schwab a while ago, that might have opened a loop-hole for me?

Edit: It was OptionsXpress - for some reason they didnt use the "e" in express. ;-)

So your Schwab account was automatically created for you when OptionsXpress was acquired?

 

[david_42]

Bear in mind, there's a limit of 2000 entities in private corporations. Slots will go to the largest holders first and small stockholders will probably have to sell.

 

[avoigt]

Bear in mind, there's a limit of 2000 entities in private corporations. Slots will go to the largest holders first and small stockholders will probably have to sell.

You are making a lot of assumptions here and construct a scenario where existing shareholders are squeezed out.

Your scenario is 180 degree against what Elon has confirmed.

"First, I would like to structure this so that all shareholders have a choice. Either they can stay investors in a private Tesla or they can be bought out at $420 per share, " (...) " My hope is for all shareholders to remain, but if they prefer to be bought out, then this would enable that to happen at a nice premium."

 

[MP3Mike]

Your scenario is 180 degree against what Elon has confirmed.

Technically he didn't confirm it. He would like it to work that way.

 

[avoigt]

Technically he didn't confirm it. He would like it to work that way.

How more clear can he be?

"Def no forced sales. Hope all shareholders remain. (...)"

Elon Musk Retweeted


Verified account Aug 7
Replying to @MindFieldMusic
Def no forced sales. Hope all shareholders remain. Will be way smoother & less disruptive as a private company. Ends negative propaganda from shorts.

 

[MP3Mike]

How more clear can he be?

"Def no forced sales. Hope all shareholders remain. (...)"

Yes, He/Tesla isn't going to force sales. But he can't prevent your broker/401k provider/country/etc. from forcing you to sell.

Again his email had more details than the tweets, and he was careful to not commit to anything in the email.

 

[avoigt]

Yes, He/Tesla isn't going to force sales. But he can't prevent your broker/401k provider/country/etc. from forcing you to sell.

Again his email had more details than the tweets, and he was careful to not commit to anything in the email.

And thats all what I am saying and he can say "He/Tesla isn't going to force sales..."

In his mail he said that people will get the choice and not you will be forced to sell.

"First, I would like to structure this so that all shareholders have a choice. Either they can stay investors in a private Tesla or they can be bought out at $420 per share, (...)"

No third option here that you are forced to sell caused from Tesla.

If you are forced to sell because of your wife, your government, your financial situation, your bank than thats out of his influence.

 

[Cobos]

Received a reply from Schwab after asking if I could create an account as a Norwegian citizen/resident: "I am sorry to inform you that due to regulatory restriction, we are unable to open an account for you based on your country of residency. Schwab is committed to ensuring it is in compliance with all laws and regulations, including those that could be applied by foreign governments. As a result, certain products and services may not be available in every jurisdiction or country such as yours."

Yes I got the exact same letter from an inquiry to Schwab for me too. Seems they don't want customers from Norway for some reason?