Tesla Motors

[rx7boi]

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At this point, I'm only reading Gesalt thru SP's quotes. It isn't fun (or funny) any more. I hope it's trolling or it could be serious mental issues.

Don't ever forget that internet anonymity and the propensity to double down on idiocy helps some to thrive here.

[Sugarphreak]

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[Gestalt]

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So are the Saudi's actually going to take Tesla private?

I just can't see them being the sole investor, or paying out the stock at 420 a share. Why would they? Or is this just to get him out of hot water with the SEC, and at the last second the deal will fail?

I always thought it would be Fiat that bought them out in the end, but the price is too crazy for regular companies to get involved.

He won't sell to the saudi fund, but its an option im sure he 'considered". SA is all about energy and they know oil is done hence selling theres off and investing in other things.

I can't remember if its 5 or 6 investors that hold 50% of Tesla stock and Musk holds 20% and will no doubt add more.

So the investment isn't as much as being thrown around

Musk is a genius. Remeber when gm and chrsyler went bankrupt tesla survived. Hes here to what.Iy

[Xtrema]

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So are the Saudi's actually going to take Tesla private?

I just can't see them being the sole investor, or paying out the stock at 420 a share. Why would they? Or is this just to get him out of hot water with the SEC, and at the last second the deal will fail?

I always thought it would be Fiat that bought them out in the end, but the price is too crazy for regular companies to get involved.

The fact that Elon want to remain in control of the private company with only 20% stake makes it a tough sell.

Who the hell want to just hand Elon $50B (+ potentially more debt) and have 0 control on how he spend it?

FIAT is only worth $25B. How the hell can they come up with $50B.

I think the board say that going private is to cover Elon's ass on that tweet. They may have pondered it but they are nowhere close to "funding secured".

[Gestalt]

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The fact that Elon want to remain in control of the private company with only 20% stake makes it a tough sell.

Who the hell want to just hand Elon $50B (+ potentially more debt) and have 0 control on how he spend it?

FIAT is only worth $25B. How the hell can they come up with $50B.

I think the board say that going private is to cover Elon's ass on that tweet. They may have pondered it but they are nowhere close to "funding secured".

Anyone would. Tesla is Musk. There is no Tesla without Musks vision.

[Sugarphreak]

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[BerserkerCatSplat]

[rage2]

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I think the board say that going private is to cover Elon's ass on that tweet. They may have pondered it but they are nowhere close to "funding secured".

Tesla released basically a lawyer written statement on behalf of Elon to get him out of trouble.

https://www.tesla.com/en_CA/blog/upd...te?redirect=no

Relevant section:

Recently, after the Saudi fund bought almost 5% of Tesla stock through the public markets, they reached out to ask for another meeting. That meeting took place on July 31st. During the meeting, the Managing Director of the fund expressed regret that I had not moved forward previously on a going private transaction with them, and he strongly expressed his support for funding a going private transaction for Tesla at this time. I understood from him that no other decision makers were needed and that they were eager to proceed.

I left the July 31st meeting with no question that a deal with the Saudi sovereign fund could be closed, and that it was just a matter of getting the process moving. This is why I referred to “funding secured” in the August 7th announcement.

Following the August 7th announcement, I have continued to communicate with the Managing Director of the Saudi fund. 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.

Basically, the excuse is that the MD told him they were eager to proceed, he took that as yup they're good to go because he's the boss and shot caller, which is why he posted funding secured. WTF.

Next meeting he realized that the MD needs due diligence, review, and votes to get approval for spending $40+ billion. Who would've thought?

I guess if that statement is to be believed, Elon is stupid? Well he's either a liar or he's stupid.

[Xtrema]

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I guess if that statement is to be believed, Elon is stupid? Well he's either a liar or he's stupid.

Therefore, reports that more than $70B would be needed to take Tesla private dramatically overstate the actual capital raise needed. The $420 buyout price would only be used for Tesla shareholders who do not remain with our company if it is private. My best estimate right now is that approximately two-thirds of shares owned by all current investors would roll over into a private Tesla.

Interesting assumption.

So out of 80% that isn't owned by Musk, he expects 2/3 stays or 50% to stay. So he expects to only need funding for that 30%, or around $25B.

But of those 30%, he also doesn't want to lose power so it will need to come from as many parties as possible?

EDIT:
https://loupventures.com/musk-fills-...ing-questions/

I guess my numbers are pretty much what everyone else is thinking about as well.

[suntan]

LOL people don't actually think that he's serious about this?

[Buster]

Friend just refused delivery of his Model 3 in the US.

Apparently every panel gap was gapped wrong, or crooked.

I remember when the old joke about the Big 3 was you didn't want a Friday car. With Tesla you want to avoid the Tent Car. What a shit company.

[rage2]

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Interesting assumption.

So out of 80% that isn't owned by Musk, he expects 2/3 stays or 50% to stay. So he expects to only need funding for that 30%, or around $25B.

But of those 30%, he also doesn't want to lose power so it will need to come from as many parties as possible?

EDIT:
https://loupventures.com/musk-fills-...ing-questions/

I guess my numbers are pretty much what everyone else is thinking about as well.

None of those numbers will ever work simply because a private company by law can not have more than 500 shareholders. Anything more you will have to be public. This is to protect shareholders from fraud as the company will not be subject to public disclosures. He talks about current investors staying on board but that’s not exactly truth either. They would have to roll into a fund to act as a single shareholder, and to avoid using that as a loophole, the fund can’t be just Tesla and subject to single company limits. How many private shareholders would actually stay on board if you’re rolling into a fund that’s only partially Tesla?

The ownership numbers are publicly available. https://www.nasdaq.com/symbol/tsla/ownership-summary

Just institutional owners alone are past the 500 number, but that’s not a problem, as many funds simply aren’t allowed to hold private shares without approval from those invested in the fund.

The whole point is moot anyways, way too many variables above to know exactly how much needs to be bought out to actually go private. Clearly investors doesn’t believe any of this shit, since the stock is holding steady at ~350 and not 420.

[msommers]

That's brutal his car didn't come with Elon Goggles.

[rage2]

Just when I thought this story couldn’t possibly get any dumber...

https://gizmodo.com/elon-musk-respon...ing-1828310609

[Sugarphreak]

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[rage2]

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So... I read that, but I don't know what it was about... is Musk in trouble, or is the girl just making shit up? Or both?

No clue if it was true. Just hilarious. Azaelia Banks is kinda crazy herself, but Grimes did tweet she was collaborating with her and waiting for her to come to LA. There was confirmation out there that she was at one of Elon’s properties over the weekend.

[Xtrema]

https://www.reuters.com/article/us-i...-idUSKBN1KY2AI

[Sugarphreak]

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[Gestalt]

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SEC has apparently served a subpoena to Musk, there is also a lot of regulatory scrutiny coming down on Tesla over this privatization announcement. If they have been cooking the books (and they probably have been fudging things), this could be a PR disaster for them.

Stock has taken quite the beating over the past 5 days... seems people are not taking the 420 buyout as a real number anymore.

Just a normal cycle of lies and misinformation from shorters and haters. Business as usual.

[Darell_n]

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Just a normal cycle of lies and misinformation from corporations. Business as usual.

Fixed.