Welcome to Tesla Motors Club
Discuss Tesla's Model S, Model 3, Model X, Model Y, Cybertruck, Roadster and More.
Register

TSLA Market Action: 2018 Investor Roundtable

This site may earn commission on affiliate links.
Status
Not open for further replies.
That brings up a good point. Will there be an opportunity for new investors to buy in at any point if they go private? If not, I may just do what you suggest. I assume I could add to my position periodically if I was already in?

Dan

I'd rather be in the door than to try down the road considering what was mentioned earlier about SpaceX.
I delayed putting in a pool and using that cash to buy shares. I'd rather sit in the hot dirt now without one, knowing I'll be sipping cool drinks by it later on with a few shares tucked away..
 
All in all I think Tesla would have been just fine if it stayed public. It's a disappointment. IMO it's more for ease of life that Tesla leaders are doing it. They'll have less public stress to constantly counter attack FUD, Wall Street BS analysis etc. but fundamentally I don't think it changes a lot in terms of execution.
But that's just the way it is. On a 10 year period the outcome will likely be the same.

I kind of feel the same. Tesla's in a good place right now, everything is getting on track, the SP was climbing quite nicely and we were all looking forward to profitable Q3 results.

But indeed, the constant BS from the media and the shorts must be very tiresome, hell it drives me nuts and I only own 0.0003% of the company.

But I think also being in the public eye is somewhat of an asset - "there's only one thing in the world worse than being talked about, and that is not being talked about".

Assuming, as an overseas investor, that I'll be able to join $TSLAP then I'll be a little concerned about the lack of liquidity, but I accept that it will also bring stability and absolutely stop me from any trading...
 
Point taken, except Elon isn’t the truck driver in this case. (And you know that). Elon has the funding all day long, every day for the $420/share. I’d bet my own money (which of course I have for 6+years, that he has funding for a price greater than $420/share - and I don’t mean 420.01/share so don’t be a smarty pants.

He’s probably been ‘thinking’ of taking Tesla private since the day after the IPO. And now he’s found the way and means. I’m super excited to find out the details in the coming days, weeks and months. I’m even excited to hear the whole story a few years from now at a shareholder’s meeting. Maybe this is another shoot out at the Mexican border story.

Totally agree. Elon has a lot of very rich friends.
 
Well, actually it isn’t floor for sellers. When I write this, they’re selling at 361.86.

I think there's no more point talking any more about this, and also I'm expecting @Realist to point out the flaw(s) in my reasoning, but all of what I wrote and which relates to what you quoted is naturally all hinging on the deal going through. In other words, so long as it is true that there is a comittment from financers to buy shares at $420 on a particular date, which will coincide with the date where TSLA is delisted fra NASDAQ, and contingent on approval of the board and a shareholder vote to approve the deal then yes there is a guarantee that you will be able to sell your shares for $420, but there is no guarantee that someone with a short position will be able to buy shares for no more than $420 neither before that day nor on that day. That is all.
 
If the LBO went through there would not be borrow out to allow for shorting. The shorts would be forced to close and the holders of the shares would be required to call all the borrow forcing the shorts to liquidate at the price at that time (which would be $420).

OK, but wouldn't the sudden spike in demand caused by the shorts being forced to cover increase the price? Given the rules of supply & demand apply
 
  • Like
Reactions: Runarbt
If the LBO went through there would not be borrow out to allow for shorting. The shorts would be forced to close and the holders of the shares would be required to call all the borrow forcing the shorts to liquidate at the price at that time (which would be $420).

If all shares are recalled pre-vote, there is no 420 in play at all.
If all shares are not recalled pre-vote and it takes effect on the vote date, there are mno shares for shorts to cover with.
If all shares are not recalled pre-vote and the conversion date is after the vote, there is a n infinite buy order at 420 in play untill the coversion.
So shorts will need to buy on the open market, have no way to cover, or buy on the 420 floored open market.

Well, actually it isn’t floor for sellers. When I write this, they’re selling at 361.86.

It is following a yes vote. That has not happened yet, so there is opportunity/ risk.
 
  • Like
  • Funny
Reactions: Drax7 and Boomer19
If the LBO went through there would not be borrow out to allow for shorting. The shorts would be forced to close and the holders of the shares would be required to call all the borrow forcing the shorts to liquidate at the price at that time (which would be $420).

it’s unlikely it will be an LBO
more likely it will be equity investors as bob pisanis article pointed out, along with morningstar and evercore isi, and loup ventures thoughts on the matter. which assumes a portion of the holders will convert to private equity, therefore 70-80bb won’t be needed in funding.

still, 20-40bb is a lot! does silicon venture cap and sovereign wealth have that appetite? maybe.

but it’s hard to keep speculating further until we see the S-4
 
Status
Not open for further replies.