Yes, except he won't (and can't) tell anyone how to deal. But many will figure this out themselves, I think, with the same result. IMO.
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So tempting to sell 1/2 of my position. Greed is telling me to hold. Normally never work for me. I don't know what to do.
Then do nothing and wait for a while until your situation becomes clearer.
"When in trouble, when in doubt
Run in circles, scream and shout"
Then do nothing and wait for a while until your situation becomes clearer.
"When in trouble, when in doubt
Run in circles, scream and shout"
Going into private with Elon, how will the company be evaluated and will it be more than 420.00 a shares. That's the unknown. Gut feeling tells me it will be 10X or more. I just don't know how independent company evaluate tesla. As book value or do they factor in the growth story.
What's your position. TSLA shares? I think you are the only person on this board trying to cash out right now. What makes you think now is a good time to sell? We are like $30+ off all time high? Do you think Elon is lying he has offers to buy TSLA at $420?
Private Company Valuation - 3 Methods to Value a Private Company
Google is your friend.
Edit: And to answer one of your questions. Yes, they will evaluate projected growth in future valuations.
Yes, as you say many factors are still unknown.
Future valuation of TESLAP is one, future liquidity another, and as yet unknown is how the multitude of us here who are non-accredited investors will be handled.
For my own part I may divest maybe half (I hold only common stock) at different price tranches over the coming months or whatever the transition will take, provided it will be possible for me to acquire TESLAP. Will have use for cash if/when buying the M3 reserved before unveil, depending on what my MS is worth then.
Things might become clearer soon, let's hope.
Same here ... I am taking 420 on the day I am forced out of Tesla.
One day before that I am not letting go of single one under 4000.
One day before that I am not letting go of single one under 4000.
Mod: reiterating my move order... if there's a special thread for it, take the discussion there. Bunch moved to Go private options strategies --ggr.
I wonder if this will end up looking similar to the Nevada deal, where much of the (literal) ground work for the factory construction gets done before Tesla has to do any real investment. Even if they're not 100% sure what the building layout is going to be, China can start with flattening terrain and prepping it for foundation pours before Tesla takes over any responsibilities/costs.
Let just say when I place my Model 3 reservation, I bought 200 shares. Special thanks to shorts. Not a small amount. I have a chance to sell 1/2 and take some profit. This is my gamble. Lots of decision.
FMR held 24,450,435 common shares on 3/31/17 so it has halved its common share position over the last 5 quarters.
HOWEVER, FMR held 6,515,000 TSLA CVs at 12/31/17 and 29,620,000 at 6/30/18. (Free registrations on Whalewisdom do not detail the CV maturity dates)
Johan
Ex got M3 in the divorce, waiting for EU Model Y!
I agree with all the substance of your post. The quoted part is easy what most peaks my curiosity. I suspect that even though outright naked shirt selling is illegal there must be a not-insignificant number of shares sold short through mechanisms that amount to more or less naked shorting, or any least partially. Most straightforward example being ITM/ATM calls sold by shorts; the holder of a call option can choose to exercise the call option rather than sell it [back to whoever issued it]. We might actually run in to a situation where there just isn't enough shares for sale, at least anywhere near $420 or whatever the buy-out price ends up at. Would anything, in principle, prevent TSLA from doing a follow-up offering at that point? For example issue an additional 3-4% of TSLA at say for example $600 or higher? As a shareholder I'd be OK with that, that way shorts can give Tesla some value back before the retire from NASDAQ?
Fact Checking
Well-Known Member
I think 29.6m of CVs give them less than 100k shares if they convert - and linearly more if SP goes beyond $360.
I.e. peanuts compared to their share holdings.
They are reducing their stake in the worst possible moment, potentially missing a lot of upside from the events to come.
Mike Smith
Active Member
Elon Musk’s Pitch to Take Tesla Private Has Wall Street Salivating
One structure being studied by banks and Tesla, according to people familiar with the matter, is a transaction that would reduce the number of shareholders to such a degree that Tesla’s shares could be delisted from the Nasdaq stock exchange and the company no longer would be required to make quarterly filings with the S.E.C.
That would be expensive — it could cost $10 billion to $20 billion — but much less so than a full leveraged buyout, these people said.
How might such a transaction work?
One possibility is a maneuver called “going dark.” In this situation, Tesla could buy out many but not all of its shareholders to reduce the total number of investors who hold Tesla stock. One way to make that math work would be to persuade as many small shareholders as possible to sell their holdings.
The largest shareholders of the company — including Mr. Musk, Fidelity, T. Rowe Price and Scotland’s Baillie Gifford, who collectively own about 45 percent of Tesla shares — would not need to sell their stakes under that arrangement.
One structure being studied by banks and Tesla, according to people familiar with the matter, is a transaction that would reduce the number of shareholders to such a degree that Tesla’s shares could be delisted from the Nasdaq stock exchange and the company no longer would be required to make quarterly filings with the S.E.C.
That would be expensive — it could cost $10 billion to $20 billion — but much less so than a full leveraged buyout, these people said.
How might such a transaction work?
One possibility is a maneuver called “going dark.” In this situation, Tesla could buy out many but not all of its shareholders to reduce the total number of investors who hold Tesla stock. One way to make that math work would be to persuade as many small shareholders as possible to sell their holdings.
The largest shareholders of the company — including Mr. Musk, Fidelity, T. Rowe Price and Scotland’s Baillie Gifford, who collectively own about 45 percent of Tesla shares — would not need to sell their stakes under that arrangement.
I honestly don't think you can thank the shorts for any major appreciation in share price since model 3 reveal. If anything the shorts are artificially holding TSLA down. Now if this deal goes through 30+ million shares are going to have to buy, what happens to the SP as a result I'll leave to you.
Johan
Ex got M3 in the divorce, waiting for EU Model Y!
Fact Checking
Well-Known Member
Yeah, in most western jurisdictions it is probably illegal to do that, except at nude beaches.
(Sorry, couldn't resist on this beautiful Sunday. Will show myself out the door.)
Mod: leaving the joke here even though the post itself got moved. --ggr.
Last edited by a moderator:
cheshire cat
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