Tesla, TSLA & the Investment World: the Perpetual Investors' Roundtable

[CHGolferJim]

Elon pissing me off. This is just an unnecessary distraction.

Tend to agree, but take-it-or-leave-it hostile takeover offers are rarely accomplished, so his real intentions are ?????. There are interesting G. Black tweets this AM about the prospects. Also, other “experts” are saying this puts Twitter in play for major tech companies outbidding Elon, but regulatory approval for such acquisitions questionable.

 

[OrthoSurg]

Tend to agree, but take-it-or-leave-it hostile takeover offers are rarely accomplished, so his real intentions are ?????.

Twitter users won’t complain that Elon should have bought Twitter instead of finding and programming his own social media afterwards. I wonder what is the probability of that deal to go through. Depends if the Twitter board and investors expects Twttier to 10x in the next decade.

 

[Hock1]

Could Elon offer to pay existing Twitter shareholders with his Tesla stocks (a swap) and avoid a large sale of TSLA? Is it legally possible?

No.

 

[jamaatta]

The answer I've heard to this question is that for any crash strong enough to damage the casting, you would have to total the car anyway.

I'm not sure if I believe that is always true, but I think it's reasonable to believe that it's usually true. It doesn't take much to total a car these days.

https://twitter.com/x/status/1313874241134063616

 

[MD70]

Never a dull moment but with that kind of money he could do something else to speed up the mission that would compliment Tesla. I wish he would buy out some utilities and transition them to renewables and work it out so that people with home Solar are not disadvantaged.

 

[Sancho]

For those not familiar with US corporate takeover procedure, this post by Elon is the classic “bear hug letter”, in electronic form. If the Twitter board rejects the offer, the most likely next move by Musk is a hostile tender offer directly to Twitter shareholders to buy their shares. Every move in a hostile tender offer, including duration of offer, is governed by specific regulations.

Elon likes to make his actions appear spontaneous in his Twitter posts, but something like this has been carefully orchestrated by lawyers and financial advisors for months, including his plans to pay for this.

 

[slacker775]

So if this Twitter thing goes through, does that mean that Tesla finally has an official PR department again?

 

[heltok]

Hmm... He owns 10%, wants to buy 90%. It will be valued around $43B(correct me if I am wrong). So basically he will have to pay $40B. With 52% taxes that’s $80B. If he sells that much will he crash TSLA to the point that he won’t even be able to afford to complete the deal? Can he buy Twitter and pay with his shares without paying taxes? The idea is not that Tesla shall own Twitter, but that Elon as a private person shall own Twitter, so I assume he must realize the gains…

 

[Drezil]

Yes, he’s offering over 50B while his team of programmers and him could manage to program a social media platform with free speech for under 100M. He should be reasoning with first principles like that moment he went to Russia to buy ICBMs and they quoted him over 30M for the rockets and he put on a napkin how much was the raw materials of this rockets and found out it was bellow 200k and decided to find SoaceX.

The world of a network comes from the users and the networking-effect.
Less will leave Twitter die to it than sign up to an Elon-run Twitter clone.

Even German civil infrastructure is on Twitter (like politicians, police, cities, ...) .. you know how long it takes until you switch platform with those?

 

[SmokyPeat]

As disinterested as I am in social media, if buying Twitter helps to keep Elon on an even keel, I'm all for it. His mental health and general well being are key to keeping Tesla performing well.

 

[Singuy]

Hmm... He owns 10%, wants to buy 90%. It will be valued around $43B(correct me if I am wrong). So basically he will have to pay $40B. With 52% taxes that’s $80B. If he sells that much will he crash TSLA to the point that he won’t even be able to afford to complete the deal? Can he buy Twitter and pay with his shares without paying taxes? The idea is not that Tesla shall own Twitter, but that Elon as a private person shall own Twitter, so I assume he must realize the gains…

53% tax only applies to exercised options because they are counted as short term capital gains. The majority of elons wealth is from long term cap gain Tesla shares.

 

[Krugerrand]

Elon pissing me off. This is just an unnecessary distraction.

Be prepared to spend a lot of time pissed off then. In case you hadn’t noticed, he does stuff all the time that’s not in the ‘CEOs Should Follow These Rules And Only These Rules’ guidebook.

Additionally, he has a plan, a goal, a mission for humanity that extends beyond your little TSLA shares bubble.

And lastly, everything he does or will do, adds or will add value to your life whether you see it or not.

Honestly, he’s the last person in this universe that you should be pissed at and it’s rather disappointing you don’t realize that.

 

[mongo]

Hmm... He owns 10%, wants to buy 90%. It will be valued around $43B(correct me if I am wrong). So basically he will have to pay $40B. With 52% taxes that’s $80B. If he sells that much will he crash TSLA to the point that he won’t even be able to afford to complete the deal? Can he buy Twitter and pay with his shares without paying taxes? The idea is not that Tesla shall own Twitter, but that Elon as a private person shall own Twitter, so I assume he must realize the gains…

Along with @Singuy's point:
You assume he has no cash nor access to financing nor that others (Jack, other billionaire pals), would go along.

The Proposal is non-binding and, once structured and agreed upon, would be conditioned upon, among other things, the (i) receipt of any required governmental approvals; (ii) confirmatory legal, business, regulatory, accounting and tax due diligence; (iii) the negotiation and execution of definitive agreements providing for the Proposed Transaction; and (iv) completion of anticipated financing.

 

[Krugerrand]

Never a dull moment but with that kind of money he could do something else to speed up the mission that would compliment Tesla. I wish he would buy out some utilities and transition them to renewables and work it out so that people with home Solar are not disadvantaged.

Who says he hasn’t thought about that already or won’t in the future?

 

[Nocturnal]

I don't worry about Elon's time or distractions, for me it's about politics. This is already being used by the right as a political football, which means the left will follow suit. That's what worries me a bit.

Oh well. Time to sit back and watch the fireworks.

Never a dull moment but with that kind of money he could do something else to speed up the mission that would compliment Tesla. I wish he would buy out some utilities and transition them to renewables and work it out so that people with home Solar are not disadvantaged.

He would lose his mind in that business. I've worked with utilities my entire career. Even the public companies operate like government agencies.

Although if he did then I could wind up working for Elon indirectly at some point. That's both amusing and terrifying.

 

[StapleGun]

Yes, he’s offering over 50B while his team of programmers and him could manage to program a social media platform with free speech for under 100M. He should be reasoning with first principles like that moment he went to Russia to buy ICBMs and they quoted him over 30M for the rockets and he put on a napkin how much was the raw materials of this rockets and found out it was bellow 200k and decided to find SoaceX.

The value is in the existing community. Not the code.

 

[TheTalkingMule]

I'm sure private equity and several individual whales will be very interested in getting a piece of an Elon enterprise if this sale ever actually happens. Seems unlikely to happen tho.

 

[Artful Dodger]

IYKYK
*(Excluding C19, Tesla market cap wasn't consistantly below $43B after June 2017)


1. Existing user base (including followers)
2. Removes Twitter as competition
3. Address crypto-scams
4. Elon & Twitter

... and if Twitter's Board says 'No', then Elon buys the remaining 41% of shares he needs on the open market at firesale prices and becomes majority shareholder.

Good move. I like it.

Cheers!

 

[JRP3]

Only if you call thermodynmic analysis "speculation". What you have ignored is how heat is removed from the copper electrode, which is the best heat conductor in the cell. That was the entire point of this slide on Battery Day:

No it wasn't. I realize you'll continue to ignore all the physical evidence which shows Tesla is not bottom cooling the cells but I'll persist in pointing it out for the benefit of others who might consider your posts to be valid.

 

[UncaNed]

Never a dull moment but with that kind of money he could do something else to speed up the mission that would compliment Tesla. I wish he would buy out some utilities and transition them to renewables and work it out so that people with home Solar are not disadvantaged.

Twitter could give him enormous leverage to accomplish more of everything.