Did you read the blogpost? Elon Musk mentions that talks took place on several different occasions. I'm stunned that you don't think their intent is serious and that if shareholders approve a deal gets done.
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Did you read the blogpost? Elon Musk mentions that talks took place on several different occasions. I'm stunned that you don't think their intent is serious and that if shareholders approve a deal gets done.
And you think he would risk his reputation on saying this to Tesla? I mean if there is no support for it with the family then he will be out of a job and worse. It obviously wasn't an off-hand comment. They have been talking to Tesla for almost 2 years. Wow...
Runarbt
Active Member
should be enough to remove doubt about money backing up the deal. Funding is absolutely present. Elon does not lie. Should see 375 very soon at least. Just lets shorts empty their pockets of fresh short shares first.
TrendTrader007
Active Member
I doubt we'd drop that low, but I think we'll be significantly below today's open. I took the news as positive since it was clear that there is a funding source with nearly unlimited capital... The market seems to disagree with me.
Mike Smith
Active Member
Trading exactly where it was when Musk made his first tweet - so the market is giving this 0% chance of success? Shorts must be adding heavily to achieve this. Seems like a dangerous game.
Runarbt
Active Member
agree. Only question is when. My stock is fine. However trying to get some leverange with options. damn difficult imho.
Would you care speculate about how will the SEC react to: ?
He has expressed support for proceeding subject to financial and other due diligence and their internal review process for obtaining approvals. He has also asked for additional details on how the company would be taken private, including any required percentages and any regulatory requirements.
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Dan Detweiler
Active Member
Those posting about disappointment that the stock hasn't risen significantly should not really be surprised in my opinion. This historically volatile stock isn't going to change in any significant way until a deal is finalized or dropped for sure. Until then, those with a dog in the race...and dog, short or long...will continue to interpret news in a manner that suits their cause. Nothing new there. This idea of a dramatic and sudden squeeze just isn't going to happen in my opinion. Perhaps a long slow nudge until the details are finalized, one way or another. Until then I think we will continue to see swings of $10-20 in both directions.
Dan
Dan
Track record for my posts have not been good. But at least I got this one right regarding the timing of the tweet.
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What's confusing about it?
* Funding is secure: if the Saudis want to buy Tesla, and if they have the money (they sure the heck do), then of course funding is secure.
* Investor support is confirmed: again, according to this, they've been trying to for years to buy Tesla. If that's not support, what is?
* The only reason it's not certain is that shareholders have to vote on it: Duh. No deal will be certain until approved
It sounds like you're trying to make an argument that Musk's tweet about "Deal ready to present to shareholders" was a lie. And indeed, except for one problem: Musk never tweeted that there was a deal ready to present to shareholders, or anything even similar.
What's confusing about it?
* Funding is secure: if the Saudis want to buy Tesla, and if they have the money (they sure the heck do), then of course funding is secure.
* Investor support is confirmed: again, according to this, they've been trying to for years to buy Tesla. If that's not support, what is?
* The only reason it's not certain is that shareholders have to vote on it: Duh. No deal will be certain until approved
It sounds like you're trying to make an argument that Musk's tweet about "Deal ready to present to shareholders" was a lie. And indeed, except for one problem: Musk never tweeted that there was a deal ready to present to shareholders, or anything even similar.
Toolsmack
Member
I was just hoping that the explanation for funding that had already been secured would come from 4-5 different sources. All your eggs in one basket type risk with only one source. If anything bad happens with 4-5 sources, there’s opportunity for others to raise %. A homerun announcement would be a follow up to this blogpost that an additional set of investors are also on board to go private.
The way I understand the letter, EM wants to make sure there are ways to retain the majority of current shareholders that want to stay onboard (i.e. no forced sale). If that is legally possible, the sale would amount to at most one third of the current ownership, and so the Saudis would not get a controlling share even if they wanted.
If, on the other hand, taking Tesla private would involve a large number of the current shareholders exiting and the Saudis taking a majority stake in the company, the deal would get killed by Elon.
If, on the other hand, taking Tesla private would involve a large number of the current shareholders exiting and the Saudis taking a majority stake in the company, the deal would get killed by Elon.
Only because "the market" is composed of manipulators, FUDsters and shorts with half a brain. Really this just reinforces why Musk wants to take Tesla private.
Wipe out the news about the Saudi investment and the buy-out news and go back to where we were before those less some additional discount for loss of Musk credibility and increased legal risk.
I think there is a mix of retail buying and institutional selling by funds who can’t or don’t want to go private. So actually, price action makes sense..... shorts are gonna try to time bottom of institutional selling and so the buys may come later....
My guess obviously ...
My guess obviously ...
The tweet points to a posting on "ir.tesla.com", which is INVESTOR RELATIONS. It is not a "blog" post. It is official communication from Tesla, as represented by its CEO and Chairman. The take private offer is headed by Elon as an individual. Let's all try to get that straight.
TrendTrader007
Active Member
Krugerrand
Meow
Nevermind multiple talks for almost a two year period but then they went and purchased a bunch of stock to prove they are serious.
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Should Motorola Nokia and blackberry have bought an Apple stock position back in 2008
After the release of the first iPhone?
Gotta give credit to the Saudis, the king visited Fremont and
Instructued their fund to buy in no uncertain terms.
After the release of the first iPhone?
Gotta give credit to the Saudis, the king visited Fremont and
Instructued their fund to buy in no uncertain terms.
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