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bhtooefr
Active Member
But there'd still be >300 shareholders of record, even if the right of first purchase is somehow implemented, meaning TSLA would still be considered a public company under SEC terms (due to being a widely held security), no?
That said, that would kill any OTC market action.
Thanks for digging up this info!
I guess, that settles the question for me...
I am going to have to vote NO to the deal, not that it matters with my measly ownership of barely over a thousand shares.
Sad to be forced out, was hoping to enjoy this ride much longer into my retirement.
ps: my best hope is that the short squeeze will push the SP high enough, and it stays high enough to make the deal fail (i.e. the finance Elon lined up is not sufficient / cannot be stretched enough to match).
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HG Wells
Martian Embassy
HEADLINE: Shortsville Times
Private Tesla to be renamed Elonco
Private Tesla to be renamed Elonco
HG Wells
Martian Embassy
Everyone in the media is trying to blow this off as Musk madness. They are all skeptical of the financing to the point that they consider it a fairy tale. Of course, the usual suspects are running with this and screaming fraud and bankruptcy time.
Until Musk reveals the financing there is going to be serious volatility. Even then there will be huge pushback. At this point this has to happen for TSLA to prosper and hit targets.
I personally like the idea of SP blowing thru 420 in squeeze. We will see...
Until Musk reveals the financing there is going to be serious volatility. Even then there will be huge pushback. At this point this has to happen for TSLA to prosper and hit targets.
I personally like the idea of SP blowing thru 420 in squeeze. We will see...
BTW, I wonder why the GOD gone so quite on twitter for so long, after creating this storm.
Musk also said they'd have full self driving completed several years ago.
Musk is *honest* in that he says what he believes is true and he attempts to do what he says. However, he is *not always correct*.
In his letter to employees, he said the way he *envisioned* Tesla going private, but from what I know of the legalities? I don't believe it's actually possible. Musk is not going to convince hundreds of 401(k)-operating employers to change their regulations; he is not going to get Canadian law changed on whether RRSPs can hold foreign private equity; etc.
In saying "definitely no forced sales" in combination with going private, he is promising the *impossible*. Just like promsing full-self-driving on too short a timeline.
I'm pretty sure he can make sure investors who *own their shares outright* will be able to keep them... I am sure Musk will do his best to design a deal with the minimum number of forced sales... but he doesn't have control over dozens of governments and thousands of retirement plan administrators. There are a lot of plans which simply don't allow for holding non-listed shares.
Runarbt
Active Member
shorts going all in premarket? or profit taking??
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Ah, you see, the rules for RRSPs have changed -- apparently a while back you COULD have held private equity, but not any more :-(
that in my self directed accounts, I can hold anything securitized, whether that's a right to the royalties of the song, or a mortgage to myself (that one may have been specifically excluded recently).
Shares of TSLA will be securitized, whether private or public, basically the way I understand it, that's the whole concept of the share.
Having said that, document you produced seems to say otherwise... I'll look into this further...
EDIT: YOU SEEM TO BE RIGHT90% of my TSLA is in tax free vehicles
Suspended from trading or de-listed
1.21 Shares of a corporation resident in Canada that were listed on a designated stock exchange in Canada but that have been suspended from trading or delisted will generally retain their qualified investment status on the basis that such a corporation continues to be a public corporation. As discussed in ¶1.23, shares of a public corporation are qualified investments. Qualified investment status could be lost, however, if the corporation elected (or was designated) not to be a public corporation. In most other situations, the suspension or delisting of a security will result in loss of qualified investment status, unless the security also qualifies under another provision.
The least he can do a good morning, tweet ?
bhtooefr
Active Member
What is the Canadian definition of a public corporation, though?
Because I think Tesla even after delisting will still count as one in the US, due to the widely held shares rule.
Because I think Tesla even after delisting will still count as one in the US, due to the widely held shares rule.
From my knowledge of corporate deals, I predict this will occur much slower. SCTY was a pretty standard stock-for-stock merger and I've seen those go through in as little as two months!
This, with the attempt to allow existing shareholders to remain as private shareholders, is NOT a standard deal, and even if they've been lining it up for a while, it'll take a long time to work out the details. I wouldn't be surprised to see it divided into stages; things involving tender offers can have several rounds, and that's a possibility here. (Tesla probably benefits from removing a large section of the float from the market at $420 anyway, even if they don't go private, just by chasing out short-termers and people who lend to short-sellers.) If a rising stock price renders the full go-private deal impossible before the process is finished, then that's what happens.
If Musk decides to cash out the existing shareholders, it would go much faster, but I hope he doesn't.
(Actually, my *ideal* outcome is that the deal takes so long that Q3 and Q4 earnings are reported, the stock skyrockets, and the deal is abandoned for being insufficient compensation... but the tender offer for shares happens early and a lot of short-termers/weak longs are bought out at $420 before that, leaving the company with much more stable stockholders.)
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I just caught a Fox News clip in which one of the guests said that they see Tesla shares valued at $2,000, when factoring in self driving. Where were these people when the stock was falling on its face at under $300?
Did they make you an honorary Canadan yet? The moderator should move these posts to their own thread, maybe after he stops trading.
Yep yep. They just found out about the Saudi money, and released the "considering taking it private" news the *same day*. I think the timing is NOT coincidental. I think the going-private plan has been in progress for a while but it had to be revealed early, because he wants to lock the Saudis out of increasing their share further, and prevent them from gaining control.
I suspect his buddies who are providing funding don't like the Saudis much either.
Putting the company into "tender offer" play may be the best move to lock out the Saudis, though if the Saudis make their own tender offer... things would get sticky. I wouldn't tender my shares to the Saudis even if their offer was much higher, though; that government has been so evil that my rather minimal "ethical investing" filter kicks in.
Heh. Just a lot of Google-fu. My father actually taught me how to effectively dig up information on the web -- first he taught me how to do it the old fashioned way in a library (something he is very very good at) then he taught me how to apply all his tricks on the web. I've apparently gone a bit beyond his skills now through practice.
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