Goldman Sachs is Elon’s personal banker. It’s the firm he’s been borrowing money from to fund his living expenses and investments like $90M for the Boring Company. His loans, Btw, are collaterized by Tesla stock.
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Goldman Sachs is Elon’s personal banker. It’s the firm he’s been borrowing money from to fund his living expenses and investments like $90M for the Boring Company. His loans, Btw, are collaterized by Tesla stock.
correction: Looks like:
Tesla legal counsel: Wilson Sonsini
Tesla special committee (Brad Buss, Robyn Denholm and Linda Johnson Rice.) counsel: Latham Watkins
And Musk and perhaps other investors are represented by Wachtell (probably for the deal) and Munger (perhaps for the securities litigation)
Not sure yet who is financial advisor to whom but it looks like GS is with Musk.
So what's kind of scenario do shorts expect, and what's the most credible one?
We might want to play with them a bit, not so much to evaluate them but to understand how things might evolves as their hypotheses get slowly proven groundless.
Edit: there are very few things longs can do, now that the buyout is in full motion (AFAIK), so it might be a good time to take them as seriously as possible... before they go bankwupt.
I remember the SCTY thread used for this, right after Elon announced the merger and we learned a lot from it.
We might want to play with them a bit, not so much to evaluate them but to understand how things might evolves as their hypotheses get slowly proven groundless.
Edit: there are very few things longs can do, now that the buyout is in full motion (AFAIK), so it might be a good time to take them as seriously as possible... before they go bankwupt.
I remember the SCTY thread used for this, right after Elon announced the merger and we learned a lot from it.
I wonder how much money Elon makes for 23 Spacex launches this year? 100m-200m?
Elon's tweet clearly describes his team: Silver Lake and Goldman as financial advisors and Wachtell and Munger Tolles as legal advisors:
Elon MuskVerified account @elonmusk 13h13 hours ago
Replying to @Tesla
I’m excited to work with Silver Lake and Goldman Sachs as financial advisors, plus Wachtell, Lipton, Rosen & Katz and Munger, Tolles & Olson as legal advisors, on the proposal to take Tesla private
Replying to @Tesla
I’m excited to work with Silver Lake and Goldman Sachs as financial advisors, plus Wachtell, Lipton, Rosen & Katz and Munger, Tolles & Olson as legal advisors, on the proposal to take Tesla private
CNBC has a NUT reporter with negative slant. Floated the Banks accusations. Suggested PIF may not have ready funds for this as their funds may be previously committed. Said involvement of GS, SL and law firms can’t be confirmed. Very anti-Elon skew.
The only way I know how Elon could take money out of SpaceX is by declaring a dividend, which would have to be paid to all shareholders. I think he takes only a nominal salary from SpaceX. At any rate, I doubt SpaceX is throwing off cash even now. They are ramping up investment for a 6,000 satellite constellation, and financing the R&D for their BFR/BFS rocket/spaceship. Not cheap.
It is clearly not about the money to Elon. If it was we would not be chatting on this web forum. Or marveling at how those smart people land rockets.
If it was about the money to Elon he would be off somewhere spending his money. Instead he is driven by something to press the forward button at all cost's.
We should be thankful for that.
I thought "work with" was ambiguous between "work on my behalf as an individual, or as part of a buyer group" or "working with the advisors to the company that I am CEO of." Musk has different hats to wear and not always clear what hat he is wearing when he tweets. Musk will have to "work with" the lawyers and advisors to Tesla and the committee as well as the other buyers. But I think the press release supports your interpretation.
Ulmo
Active Member
In my estimation, the recent announcement (Tesla Announces Formation of Special Committee to Evaluate Potential Going Private Transaction | Tesla, Inc.) doesn't tell us closely watching investors much new we didn't already know about the go-private proposal; we knew the board review was going to happen last week when we found out the Board wasn't in on the deal yet, and we knew the deal negotiation was going forward. However, that announcement does make Tesla's Board of Directors seem like a distant seperate entity from Tesla, nearly unaware of what goes on at the company, unlike back when they didn't have a flooding of "Independent" Directors that each serve on a dozen other companies' boards (which makes the new Directors not independent at all). Also, anybody familiar with the committee members could tell us what they know of their past deals.
You were right first time!
I have to admit that I'm currently feeling a lot less enthusiastic about holding a significant fraction of my portfolio in TSLA. One reason that I've tried to support Tesla and EVs, and buy TSLA shares, is to help reduce the world's dependence on Middle East energy that's controlled by a combination of despotic regimes and Islamic fundamentalists. My primary reason to support Tesla and EVs is to address climate change. However, the prospect of significant Saudi ownership of Tesla just makes me feel icky. If I personally had tens of billions of dollars ready to invest, I'd like to think that I would step forward and eliminate the need for Tesla to take a large amount of Saudi money. But I don't, and I'm now questioning whether I really want to continue over-weighting TSLA.
I mean, if Elon is prepared to tap the Saudis for many billions of dollars, do I really need to "sacrificially" invest in TSLA? I'm now thinking it'd be better to limit TSLA exposure to maybe a few percent of my portfolio (as I would normally do with any individual stock).
I'm also a bit worried about Elon's premature "funding secured" tweet. It sort of reminds me of former President George W. Bush's "mission accomplished" banner early in the Iraq war. I feel that, while Elon was sincere in his intentions, he would have achieved better credibility by simply stating that he was talking to large investors about taking Tesla private.
At the same time, I don't want to just give my "excess" shares to shorts right now, and it would be nice to at least fetch $420 per share. But I don't know. If I sell half of my shares at $357, that's a sure thing and I'll have made money overall. It's sad to have turned into a "weak long"! At least that's my state of mind today.
jelloslug
Active Member
Mixing emotion with investing usually works out poorly.
He claims to be an expert at evaluating whether a company's shares are under/overvalued, not at assessing the probability of whether it gets bought out or taken private. So what would be his rationale for holding a short position right now?
Ulmo
Active Member
I agree. The reason I'm in support is this is the same thing in my opinion; KSA is on a path of improvement, with some improvements already made, and the futher I look into it, they weren't as bad as everyone said to begin with, but yes, they have improvement to do, almost as much as USA does today.
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