Shareholder Loyalty Program Idea

[longtrader]

I dawned on me last night that a ton of investors here are saying that they hope to use the profits from the sale of their Tesla stock to actually buy one. What would happen if Tesla came up with some sort of program that allowed those people to sell their stocks directly to Tesla in return for a car. It would prevent shares from being sold on the open market at worst and at best, it could be used as reserves on Tesla's balance sheet to offset the resale guarantee or help offset the bonds that I imagine will be converted. Another idea is to give preferential treatment in lines for reservations on new models, etc. to long term investors. I know it is all about cashflow right now, but at the same time, I just keep thinking of that old electric razor commercial (I think) where the spokesperson said that he liked the product so much he bought the company. Why not do something using product as a minor incentive to continue long term investing?

 

[TSLAopt]

This is a great idea if it is practical from a legal/tax/administrative perspective

 

[marvinat0rz]

Completely pointless and infeasible. Won't happen. From Tesla's perspective there is no difference between buying from you or buying from the open market. If the company wants to realize profits for a car, it needs to be paid in cash, and then it would need to sell the shares on the open market regardless. This would be equivalent to a very administratively inefficient stock buyback program, which is in itself equivalent with paying a dividend.

Read up a bit on how the stock market works. It's very easy to come up with ideas that maybe sound good at first glance but in fact are identical to a mechanism that already exists.

 

[mitch672]

I just keep thinking of that old electric razor commercial (I think) where the spokesperson said that he liked the product so much he bought the company.

Victor Kiam, Remington. He owned the New England Patriots, at one point.

Victor Kiam - Wikipedia, the free encyclopedia