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Tesla going Private @ $420?
- Thread starter TexasTeslaRacing
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- Elon Musk Tesla Inc.
Congratulations Elon on your decision,
I will miss fighting for TSLA, but will not miss the distraction that it presented for all of us. Perhaps we all can focus on more important things now like world peace, poverty around the world, addressing climate change and building rockets to go to Mars instead of building missiles and bombs that will destroy all of us. I believe the future is very bright and is getting brighter. I hope that you are starting to agree.
Very best wishes to you and the Tesla Team,
Peter McLean Thomas
I will miss fighting for TSLA, but will not miss the distraction that it presented for all of us. Perhaps we all can focus on more important things now like world peace, poverty around the world, addressing climate change and building rockets to go to Mars instead of building missiles and bombs that will destroy all of us. I believe the future is very bright and is getting brighter. I hope that you are starting to agree.
Very best wishes to you and the Tesla Team,
Peter McLean Thomas
Does that mean there will be no more demand levers and incentives to sell cars by eoq?
You can be sure that the tweet was vetted at a very handsome hourly rate. As long as the tweet is true its fine.
One of many good reasons to take it private.
Well we can still keep the shares in the private fund. Which I plan on doing.
Adm
Active Member
I wonder how many accounts on this forum will go silent once $TSLA is private....
kaiserpathos
Member
I was thinking the same thing. A welcome noise-reduction, to be sure.
dauger
Member
OMG this is so ballsy! I'm okay if they do and I'm okay if they don't, but if they do it'll be yet another way Tesla makes history. It's certainly one way to evict and lock out the short sellers.
I just bought 5000 shares. Either way I win big. If it goes private I make a killing. If he does not take it private and the price is below $420 I sue him for fraud.
Well you should be sympathetic to the current shareholders.Some of the shorts on that twitter thread were peeved. One suggested that Musk is trying to cover up a sales or earnings miss. I can see how this buyout, if it were to happen, would be really bad news for the shorts. However, I am not sympathetic to their plight, to put it mildly...
Companies go public in order to grow and raise money from armies of investors. But the process is rigorous and costly. But the reason they do it is to attract big investments and growth. This is exactly why Tesla went through this in 2008. In return, companies must be transparent, accountable with quarterly financial reporting, and are subject to civil and criminal penalties for false or misleading information. Investors also benefit from great liquidity. Investors in TSLA can sell their shares five days a week almost instantly. In a move to privatize Tesla most of that goes away. When have you ever seen a financial report for SpaceX? Are they profitable? How many shares are outstanding? Who owns the biggest blocks? Those answers are nowhere to be found outside SpaceX.
Based on results so far this quarter, it seems unlikely Tesla will hit a profit in Q3 and Q4. But that is the corner Musk has painted Tesla into with his promises. So what that other writer wrote may be true. To avoid a Q3 stock price bloodbath the best thing Tesla can do is not have to report results to anyone at all and just "focus on the future".
The letter pointing to wanting to hear from and keep as many current investors invested in Tesla points out that Musk does not have funding for $71.3 billion plus debt assumption of about $10 billion. Before any investor signs over to this arrangement, they need to see a full accounting of what they are getting into, and an explanation from a competent corporate law attorney. Many small investors in private companies lose their shirts due to the lack of liquidity and accountability.
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HIs stake will probably change BIG TIME. Whoever puts up the $10's of billions to buy out those who will take the $420 and run for safer stocks will ultimately control a huge piece of Tesla. The more people cash out the more "they" will have to cover. The reason this is not a done deal is there is obviously a limit way under $71 billion they are willing to fund to make this happen. So unless enough shareholders opt to stay the deal will likely fall apart.
This still does not solve Tesla's biggest problem and that is their cash burn. Unless Tesla's buyers are buying fresh shares (while diluting the other current shareholders) this effort is not raising fresh cash. As already reported today the Saudis already acquired their shares since March. So their cash has already changed hands to others who were getting out of shares. Fidelity sold 5 million shares in Q4 and Q1. Some of those shares may have gone to the Saudis.
What fraud? He already said it is not a done deal. If the deal falls apart and the stock drops to $300 again you can only blame yourself. Not Musk. All he did today was outline what he is trying to do in what he thinks is in the best interest of the company. Guys like you ran up the stock price on hopes of profit taking way too soon.
Without the details of his plan, you have nothing so far except 5,000 shares you paid way too much for.
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