All he said is that he is considering taking it private @ $420, there was no promise or guarantee. As far as I have seen there has been no formal offer presented. And even if there was the shareholders could vote it down.
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Tesla going Private @ $420?
- Thread starter TexasTeslaRacing
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- Elon Musk Tesla Inc.
All he said is that he is considering taking it private @ $420, there was no promise or guarantee. As far as I have seen there has been no formal offer presented. And even if there was the shareholders could vote it down.
cdub
OG 2011 Leaf / 2023 Model Y LR
Aaaaand.... This is the best argument for him taking it private. So they don't have to deal with people like you.
While guys like this are indeed...less than great, they are what creates a liquid market for Tesla shares. So everyone, unfortunately, benefits from investors like him.
Mo City
Active Member
Do you mean a self-directed IRA or a Fidelity mutual fund? SDIRA you control the shares. Fidelity mutual fund is controlled by the manager(s).
Mo City
Active Member
If by "self-directed" you mean I make all the decisions and trade at will? Yes. I've lucked out the last 2 months with some selling/buying and increased my amount of Tesla shares by ~15%. Won't be doing that any more.
I also have mutual funds with Fidelity but those are in a 401K.
Going private avoids management's feet from being held to the fire on promises made. Such as 5,000 per week and profitable Q3 and Q4. Kindly remember it was Musk, not analysts, or shorts, who made those promises that boosted the stock. Now it seems he wants to no longer be held accountable. You really think that is a wise move?
If for any reason you change your mind later, how are you going to sell your shares? Craigslist? Ebay?
The shares that you control are yours to decide. I would consult with a CFP or Fidelity IRA specialist to find out if you can place IRA funds in a private company. IRA funds have a lot of restrictions. As far as I know, you can, but just understand the pitfalls. There are no outside governance or disclosure requirements.If by "self-directed" you mean I make all the decisions and trade at will? Yes. I've lucked out the last 2 months with some selling/buying and increased my amount of Tesla shares by ~15%. Won't be doing that any more.
I also have mutual funds with Fidelity but those are in a 401K.
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Asymmetry
Member
Glad he's doing it
Elon works best in a private company like in SpaceX, away from stock price/short seller /investor BS/drama. Waste of his time and mental energy.
Elon works best in a private company like in SpaceX, away from stock price/short seller /investor BS/drama. Waste of his time and mental energy.
Here is my question. If you are someone with enough capital to help Musk do this why pay a $65 premium from where the stock was earlier today? Take a large position first at lower prices and then make a move. In a normal LBO money is borrowed to increase the owners share of the profits and reduce regulatory oversight. The RJR Nabisco LBO of 1988 comes to mind. The borrowed money is used to buy up shares and debt is at a fixed rate. If Musk wanted to do this why did he not make his move in April when the stock dropped well under $300? Why wait until now when the stock was at $355?
The only rationale that makes sense is he does not want to have to report on Q3 or Q4 results. If Tesla goes private there are no reporting requirements at all. Shareholders may no longer get regular financial results even annually. If you decide you want out how are you going to sell your shares?
This just seems like Musk's replacement for the interest-free reservation loans. Now he wants your shares loaned instead.
That's not true. He's still accountable to the shareholders. The stocks just won't be traded on a stock exchange. Private companies have rules which state how shares can be bought and sold.
For example, Publix is a private company. It's the largest employee owned company in the world. The majority of the shares are owned by the employees and ex-employees. About 20% of the shares are owned by the heirs of the founder of the company. There are 3 ways employees can get shares. 1) Employees who work a minimum of 1000 hours/year get ~8.5% of their salary in shares free in their Employee Stock Ownership Plan. 2) They can buy shares through their 401(k). 3) They can buy shares outside of any retirement plan during 4 specific periods throughout the year. Those shares having been gaining about 15%/year for over 40 years. They also earn dividends. The share price is set by an independent body based on the share value of peer companies.
Mo City
Active Member
I just had an online chat with a Fidelity rep. He said the terms of my IRA will not force me to sell.
It's HODL for me.
You left off transparency and accountability. Musk does not like those items either. He likes to spend money at his discretion, not having to account to investors and their analysts. If you are one, take the $420/share and be grateful for the gift.
Riiiight...a little over 1.8 million....go to reddit ya bot.
Great example: Except Tesla will not be an employee-owned and operated company. Tesla will be controlled by those with the largest number of shares who will be making the rules. Who is going to set the share price for Tesla?
You did not mention that Publix shares cannot be sold to the public. Only Publix can buy them back. What happens if Tesla runs out of cash to buy your shares at any given time? Publix and Tesla are apples to oranges in comparison. If Tesla goes into decline how are you going to bail out? Simple answer, you can't.
whitex
Well-Known Member
Who sets this price every 6 months? Is it every employee has to find a buyer for their private stock and negotiate a price? Do they just put their private stocks on ebay?
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