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Tesla going Private @ $420?

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#6
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#10
dgpcolorado said:
Isn't tweet like that from a CEO seriously illegal?
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It depends. If Musk's tweet was serious and he is really going through with it, it is legal. But if Musk's tweet was a joke, taunt or any type of psychological game then it is definitely illegal. CEOs are not allowed to just say stuff to manipulate their stock price.
 
#11
diplomat33 said:
It depends. If Musk's tweet was serious and he is really going through with it, it is legal. But if Musk's tweet was a joke, taunt or any type of psychological game then it is definitely illegal. CEOs are not allowed to just say stuff to manipulate their stock price.
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Wish the same was true for short sellers and their lackeys. Well... it is, but it happens anyway.
 
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#13
dgpcolorado said:
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... :D
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Well, when you gamble like the shorts did, sometimes you lose.
 
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#15
Wow. Just saw the Musk email post. I came here to post before that to say I'm sure Elon was serious about taking Tesla private again. I think he believes in the company, his employees and the long term goals of the company; plus he's sick of the mentality of the short sellers, Wall Street and how the press continues to find any weakness, real or perceived, and make that the lead/headline for the article and have it affect the stock price.

I just wonder how long-term investors and employees (who also get stock) feel about this. They are the ones that have always believed in the company, it's employees and the goals. Sure getting a guaranteed higher price for each share of stock would be nice, just not sure that's been everyone's goal in their stock purchase and at least Elon would give all shareholders the choice of staying shareholders in a private company with option to sell every six months or so or just cash out.

Personally I think he's making good on his promise to the short sellers. Think it's something he's thought of doing for a while and warned them it was coming. I do agree that having to try to run a company with all that Tesla has had to from outside of the company is a huge distraction. Feel for employees or shareholders who have no idea where their shares will be day to day, more so than any other company's shareholders.
 
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#16
SMAlset said:
Wow. Just saw the Musk email post. I came here to post before that thatI'm sure Elon was serious about taking Tesla private again. I think he believes in the company and the long term goals of the company and he's sick of the mentality of the short sellers, Wall Street and how the press continues to find any weakness, perceived real or not, and make that the lead/headline for the article and have it affect the stock price.

I just wonder how long-term investors and employees (who I believe also get stock) feel about being taken out of the equation. They are the ones that have always believed in the company, it's employees and the goals. Sure getting a guaranteed higher price for each share of stock would be nice, just not sure that's been everyone's goal in their stock purchase.

Personally I think he's making good on his promise to the short sellers. Think it's something he's thought of doing for a while and warned them it was coming.
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If you read that letter that @diplomat33 linked to, employees and current shareholders can continue to hold stock and will have opportunities to buy or sell every six months or so.

...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, which is a 20% premium over the stock price following our Q2 earnings call (which had already increased by 16%). 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.

Second, my intention is for all Tesla employees to remain shareholders of the company, just as is the case at SpaceX. If we were to go private, employees would still be able to periodically sell their shares and exercise their options. This would enable you to still share in the growing value of the company that you have all worked so hard to build over time.

Third, the intention is not to merge SpaceX and Tesla. They would continue to have separate ownership and governance structures. However, the structure envisioned for Tesla is similar in many ways to the SpaceX structure: external shareholders and employee shareholders have an opportunity to sell or buy approximately every six months...
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#17
dgpcolorado said:
If you read that letter that @diplomat33 linked to, employees and current shareholders can continue to hold stock and will have opportunities to buy or sell every six months or so.
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Yes I saw it but hadn't had the opportunity to read it before posting and modified my post while I guess you were quoting and commenting on my post after I got a chance to read it. Had my original comments ready to go before seeing the previous post that was made while I was typing mine. Anyway, yes was happy to read that in his memo. Interesting days ahead and would love to see Tesla not manipulated like it has been.

I have always seen Elon as being an altruistic person so reading his memo doesn't really surprise me.
 
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#18
See Elon Musk elaborates on plans for Tesla to go private in email to employees: says structure would be much like SpaceX

Very smart move by Elon. Price is attractive for those who want to sell (not me, I’m holding my TSLA) or current shareholders can keep their shares. Going private frees management to focus on the long term strategy and will reduce the negative publicity that is often generated by the shorts and skeptics and agents of the fossil fuel industry.

I hope the shareholders vote to approve taking the company private. Elon has my vote.
 
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#19
The stock went from $340 to $370 today! Fantastic! Thanks, Elon!
Tesla Stock.png
 
#20
Actually it closed at 379.57 and after hours it's at 377.80. Will be interesting to see how it reacts tomorrow and later this week. Didn't the shorts have something like 3 days to cover their positions? Guess it's been getting more expensive for them to do that.
 
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