Elon taking Tesla private?

[Monkeybiz0985]

So this isn’t an article but just came across it on Twitter. Apparently Elon is considering taking Tesla private.  

 

I in my infinite business ness knowledge feel that it would probably be best for Tesla. If they have indeed secured all the funding they need I think it would protect them in the long run, at least until they become more consistent in their production.

[Deus Voltage]

From what I've read and seen, it seems to be the right move forward as long as investors are properly informed about the minutia. It's somewhat of a risk, but Elon is all about risk vs reward. 

 

PS: forgot to add that bears will be the biggest losers if the deal comes through. Serves the short sellers right if you ask me, should have seen it coming from a mile away.

[EPPHO]

What does it mean? I don't really understand these things. 

[GumpyWills]

Elon Musk is overrated. His businesses are slowly crumbling while they are kept afloat by false promisehoods and engineering fantasies. Like his Hyperloop for example, never ever going to work.

[Taf the Ghost]

Elon is many things, but he'd never tweet this if it wasn't serious. Actually, he most likely tweeted it because of the "funding secured" part. If anyone got wind, they could make some pretty solid money if TSLA dropped any before an announcement. He was actually being financially responsible by announcing it on Twitter, amazingly enough.

 

Not quite sure who is dropping ~72 Billion USD for the company, though a move to going Private isn't going to be a pure conversion play.

 

https://www.nasdaq.com/symbol/tsla/ownership-summary

 

Almost 62% institutional holding, so they probably hold onto most of that. Given Tesla's outstanding debt, if they convert that into different type of liability, it'll give them time to expand & reach the production capacity that'd be necessary to be a real going concern.

[Taf the Ghost]

Just now, GumpyWills said:

Elon Musk is overrated. His businesses are slowly crumbling while they are kept afloat by false promisehoods and engineering fantasies. Like his Hyperloop for example, never ever going to work.

TSLA Short Bot?

[Taf the Ghost]

3 minutes ago, frozeNNN said:

What does it mean? I don't really understand these things. 

Public Companies have traded stocks & reporting requirements. Some Investor(s) want to make it a non-traded, private company. If it was just outright bought at $420 per share, it'd be around a 75 Billion USD purchase.

 

What Musk is talking about is a bit more technical. Someone is going to offer to buy every share anyone wants to sell at $420, but, after a certain date, the company is no longer publicly traded on a stock exchange. Reporting requirements change a lot and it opens up different avenues. 

[GumpyWills]

4 minutes ago, Taf the Ghost said:

TSLA Short Bot?

Pretty much. In the next five years, his grand visions will be pulled back another five years and will promise it "soon", while the same suckers give him their money.

[Taf the Ghost]

Just now, GumpyWills said:

Pretty much. In the next five years, his grand visions will be pulled back another five years and will promise it "soon", while the same suckers give him their money.

So, Amazon, then?

[GumpyWills]

1 minute ago, Taf the Ghost said:

So, Amazon, then?

Not in the loop as far as Amazon is concerned, but Bezos does look a little bit like Dr Evil. Coincidence?

[MoonSpot]

Going private would stop a lot of people from seeing the books.  Interesting development.  Will be interesting to see what analysts following tesla stock think.

[Taf the Ghost]

Just now, GumpyWills said:

Not in the loop as far as Amazon is concerned, but Bezos does look a little bit like Dr Evil. Coincidence?

Musk understands the game, and Amazon is actually the biggest abuser of never making money for nearly 2 decades but still having access to funding. The Silicon Valley model is broken & pretty evil, but there are factions that want to play that game & Musk will play along. 

 

Car Manufacturing requires a certain level of production capacity before you can ever pay off your cost base. Elon's job is to get from point A to that point. It's pretty ugly, but Elon has the connections to keep the funding coming. That's the thing the Shorts Faction didn't want to deal with.

[EPPHO]

6 minutes ago, Taf the Ghost said:

Public Companies have traded stocks & reporting requirements. Some Investor(s) want to make it a non-traded, private company. If it was just outright bought at $420 per share, it'd be around a 75 Billion USD purchase.

 

What Musk is talking about is a bit more technical. Someone is going to offer to buy every share anyone wants to sell at $420, but, after a certain date, the company is no longer publicly traded on a stock exchange. Reporting requirements change a lot and it opens up different avenues. 

So it means that after their stocks go private they won't be available to "normal" people? 

[Sakkura]

12 minutes ago, Taf the Ghost said:

Elon is many things, but he'd never tweet this if it was serious. Actually, he most likely tweeted it because of the "funding secured" part. If anyone got wind, they could make some pretty solid money if TSLA dropped any before an announcement. He was actually being financially responsible by announcing it on Twitter, amazingly enough.

It's not that responsible to tweet about this before notifying investors. Trading in Tesla stock had to be suspended because (obviously) this has a dramatic effect on the share price. And if it doesn't go through, some people will have gotten screwed.

[Taf the Ghost]

1 minute ago, frozeNNN said:

So it means that after their stocks go private they won't be available to "normal" people? 

Yes. Though that's not actually why. It's the 3-month reporting period that gets annoying. 

 

Also, Tesla needs to re-work a bunch of its debt. That's really their huge problem, given the realities of making cars. (They need to be producing probably 15k per week to be a long-term manufacturer.)  This is actually a very good idea for Tesla, but the fact someone wants to put up that level of money is interesting.

 

The computer company Dell did this a few years ago, and they're about to go Public again (likely next year). 

[Taf the Ghost]

2 minutes ago, Sakkura said:

It's not that responsible to tweet about this before notifying investors. Trading in Tesla stock had to be suspended because (obviously) this has a dramatic effect on the share price. And if it doesn't go through, some people will have gotten screwed.

Helps if I don't botch up a double negative. This is actually a serious move and not some stunt. The big players all know, but he's informing the rest of the market before people start buying up on a rumor. Other detail is that if someone got wind, they could drive the price through $420 to either make the deal break or to force the price up. 

 

It's a shrewd and smart move by Elon. There's also the issue that Tesla has had with massive information leaks/IP Theft. 

[MyName13]

420? So who is going to buy all these shares and why?Since english isn't my mother tongue, is "taking tesla private" correct (did he mean making private and what does it mean?)?

 

45 minutes ago, Taf the Ghost said:

and Amazon is actually the biggest abuser of never making money for nearly 2 decades but still having access to funding.

Who is funding Amazon?

[Taf the Ghost]

20 minutes ago, MyName13 said:

420? So who is going to buy all these shares and why?Since english isn't my mother tongue, is "taking tesla private" correct (did he mean making private and what does it mean?)?

 

Who is funding Amazon?

"Taking Private" is to change a company from a Publicly-traded Stock Company to a Privately-owned Company. They'd leave the NASDAQ and they would not have to report all of the filings that go along with "Public" companies.  (When a company lists on a stock exchange, it is called an IPO: "Initial Public Offering".)

 

On Amazon, mostly the large banks that were underwriting the Bond offerings.

[ItsMitch]

Ahahhahah all the people betting on Tesla crashing and burning (short sellers) lost another billion off about 71 characters ahhahahahha 

[Taf the Ghost]

22 minutes ago, SC2Mitch said:

Ahahhahah all the people better on Tesla crashing and burning (short sellers) lost another billion off about 71 characters ahhahahahha 

Short Selling Equities is doable, but the "Short Sellers" are propped up because you can fleece them like mad. You only Short ranges unless you have inside information about a company about to collapse. Stocks almost never just grind lower. They Grind Up and Pop Down. So there are reasons to Short a stock, but if you're sitting in a Short position, you better know exactly what you're doing.

 

But we do know why Elon bought a whole bunch of shares recently.

[JCBiggs]

it means that the big investors in the company dont think elon knows wtf hes doing   and want more control over the company to STOP losing money.

 

 

[JCBiggs]

2 hours ago, SC2Mitch said:

Ahahhahah all the people betting on Tesla crashing and burning (short sellers) lost another billion off about 71 characters ahhahahahha 

and?  i made almost 200% a few months ago when they crashed.   (leverage is beautiful)

[S w a t s o n]

I'm a little salty because I just sold my little bit a tsla during that slump last week and now I'm suddenly out like $100/share. Within a week...

[Taf the Ghost]

16 minutes ago, Swatson said:

I'm a little salty because I just sold my little bit a tsla during that slump last week and now I'm suddenly out like $100/share. Within a week...

Doh. But, if you made a profit, that's what matters. 

[S w a t s o n]

3 minutes ago, Taf the Ghost said:

Doh. But, if you made a profit, that's what matters. 

Yea but I only sold because I needed some financial liquidity for a short time and now I'm getting fucked. I was in long and planned to stay in until just before I sold