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

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What's with the pre-market "mega" dump?
Elon needing to sell $43B of TSLA to fund his purchase of Twitter?

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Here is a thoughtful article some might want to consider.


At least Jack is happy and this was likely all his idea in the first place.
 
Could he purchase on margin? He’s got plenty of TSLA for a securities backed loan etc.
Elon can do a lot of things, doesn't mean he wouldn't pick the worst option like how he sold Tesla stocks. Preannoucing the sell and doing it in chunks on the open market while pre determined sell was happening was perhaps every worst option combined.
 

I invested in Twitter as I believe in its potential to be the platform for free speech around the globe, and I believe free speech is a societal imperative for a functioning democracy.

However, since making my investment I now realize the company will neither thrive nor serve this societal imperative in its current form. Twitter needs to be transformed as a private company.

As a result, I am offering to buy 100% of Twitter for $54.20 per share in cash, a 54% premium over the day before I began investing in Twitter and a 38% premium over the day before my investment was publicly announced. My offer is my best and final offer and if it is not accepted, I would need to reconsider my position as a shareholder.

Twitter has extraordinary potential. I will unlock it.

…..
1.Best and Final:
a.I am not playing the back-and-forth game.
b.I have moved straight to the end.
c.It's a high price and your shareholders will love it.
d.If the deal doesn’t work, given that I don’t have confidence in management nor do I believe I can drive the necessary change in the public market, I would need to reconsider my position as a shareholder.
i.This is not a threat, it's simply not a good investment without the changes that need to be made.
ii.And those changes won't happen without taking the company private.

2.My advisors and my team are available after you get the letter to answer any questions
a.There will be more detail in our public filings. After you receive the letter and review the public filings, your team can call my family office with any questions.
 
Just to confirm…Elon has offered to buy Twitter for more than Tesla was worth less than three years ago?!? What an interesting time to be alive. lol

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.
 
He better do some borrowing

That's one of the conditions in the Offer, per the Apr 13, 2022 SEC filing:

"The Proposal is non-binding and, once structured and agreed upon, would be conditioned upon, among other things, the​
  1. receipt of any required governmental approvals;
  2. confirmatory legal, business, regulatory, accounting and tax due diligence;
  3. the negotiation and execution of definitive agreements providing for the Proposed Transaction; and
  4. completion of anticipated financing."
Elon would need to borrow less than $40B given his Offer amnt and his current stake. Given that he currently owns ~$220B in TSLA and ~$55B in SpaceX, that's less than 15% of Elon's equity in Mkt Cap. Even less, given that Elon has another ~10% of Telsa due in stock options before 2028 (that's an addtional $100B equity, even at today's SP).

Not a problem for the big banks on Wall St. Maybe $10B each for 4 banks? ;)

Cheers!
 
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Just to confirm…Elon has offered to buy Twitter for more than Tesla was worth valued at less than three years ago*?!? What an interesting time to be alive. lol
IYKYK
*(Excluding C19, Tesla market cap wasn't consistantly below $43B after June 2017)

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.
1. Existing user base (including followers)
2. Removes Twitter as competition
3. Address crypto-scams
4. Elon & Twitter
 
Makes me wonder what happens if there is a fender bender and the front or rear section has minor damage?
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.