Holding shares in a private Tesla outside the US

[madodel]

Why do you think she will have to sell without ability to transfer shares to other house? lol. Paniek, Paniek.
There are no principal US wide restrictions for foreigners to hold private shares.
She will get passive type anyway.
What about asking professional advice instead of panicking?
Fidelity as a service has total range of possible management choices. the worst she has to do is to change her broker first. Ask relevant people, not forums.

In any case your daughter will be asked to convert public Tesla shares she holds somewhere fund to private ones in some structure built for Tesla.
If she lives in Germany asking fiscal advice in Germany is relevant.

She is a US citizen going to university in Germany so that is not her permanent residence. I suppose she can change her residence on her account to her German one but I have no idea if that is enough to avoid the US accredited investor requirement. Or perhaps the geniuses advising Elon and Tesla on this will have a solution for that.

Also I am not panicking. I am an accredited investor and almost all my TSLA is not in a retirement account and I have no margin. But at this point we have no idea what the option/requirements will be for people who want to go private. I trust that Elon and Tesla will do everything they can to make this happen and be as fair to as many longs as possible. But there is a chance that not all people will be happy. I just think it is premature to be all doom and gloom about it until we hear the actual plan.

 

[Jahtimackara]

Hi!

I've been following this discussion here since Elon's proposal of taking Tesla private. I've own Tesla shares only indirectly through funds. De-listing Tesla would force the funds to sell Tesla's shares because of the funds' rules. So I've now tried to figure out how I could safely own shares as and US-foreigner even after the de-listing, if it happens. I asked about buying and holding Tesla shares at my bank and got an assuring reply from them (a Finnish bank).

About voting rights: They said that if I bought Tesla shares through their bank the shares would be registered to my name, so I would have all the same shareholder's rights as an US-citizen would. I could for example vote in shareholders' meetings. They said, however, that only sometimes the sub-custodians of the USA-based shares notify my bank about the matters voted on in a shareholder's meeting. When they do notify, I could vote without cost. But generally I would have to personally inform my bank about the shareholders' meeting well beforehand so they can sign me up for it. My bank might then collect a payment from me depended upon the amount of work they had to do for that.

About holding de-listed's Tesla's shares: If the deal comes through as Elon first explained it, I would get a query for a buying offer on the shares I own and could sell them in exchange for cash. If indeed minority-share holders aren't forced to cash out, I could stay as a shareholder in unlisted Tesla. Shares of unlisted companies can be held in my bank just as shares of listed companies.

To me this feels like I'd be good, from behalf of my bank at least, no matter if Tesla will go private or stay public.

 

[mrdoubleb]

Phew. Ok. So staying public certainly makes our situation a lot easier. No more uncertainty whether we can stay on as shareholders! Yay!

 

[avoigt]

True, this thread can be closed.

For whom it did not read it jet:

Statement from Independent Members of Tesla’s Board of Directors (Brad Buss, Robyn Denholm, Ira Ehrenpreis, Antonio Gracias, Linda Johnson Rice, and James Murdoch): | Tesla, Inc.

 

[Tslynk67]

I have to say that from a purely selfish stand-point, I'm extremely relieved. The stress of the last few weeks has been immense.

Now to get back to the FUD fighting!

 

[mrdoubleb]

I have to say that from a purely selfish stand-point, I'm extremely relieved. The stress of the last few weeks has been immense.

Now to get back to the FUD fighting!

Wow! Nice feedback from Elon to your tweet!

 

[jbih]

Thanks Lycanthrope for being our voice. I'm a bit sad that we can't put a lid on the FUD yet though. I had hoped Elon could find a solution that everyone can stay in.

 

[aubreymcfato]

Thanks Lycanthrope for being our voice. I'm a bit sad that we can't put a lid on the FUD yet though. I had hoped Elon could find a solution that everyone can stay in.

Well, in the end, kudos to @neroden, who was right all along (as always? :-D)

 

[eepic]

Glad this worked out as status quo, big sigh of relief. Back to building cars for Elon!