TSLA Investor Discussions

[Lloyd]

New article: Elon is considering a "Holding company for Tesla and Space X shares"

What will that do to stock prices?? What is the benefit?


http://www.businessweek.com/news/2012-08-30/elon-musk-says-he-may-form-holding-company-for-tesla-spacex

 

[mnx]

He mentioned that today on the Jalopnik Q&A...

The benefit he mentioned is that funds could be moved between companies with much less effort.

New article: Elon is considering a "Holding company for Tesla and Space X shares"

What will that do to stock prices?? What is the benefit?


http://www.businessweek.com/news/2012-08-30/elon-musk-says-he-may-form-holding-company-for-tesla-spacex

 

[Citizen-T]

New article: Elon is considering a "Holding company for Tesla and Space X shares"

What will that do to stock prices?? What is the benefit?


http://www.businessweek.com/news/2012-08-30/elon-musk-says-he-may-form-holding-company-for-tesla-spacex

Electric planes!

 

[Arnold Panz]

He mentioned that today on the Jalopnik Q&A...

The benefit he mentioned is that funds could be moved between companies with much less effort.

There are potentially a lot of other benefits, particularly with respect to taxes. For example, if Tesla has lots of past losses and SpaceX doesn't, with a holding company SpaceX can use Tesla's tax credits and thereby lower the overall tax bill for Elon's companies. There are other various tax strategies that can be pursued with this type of corporate structure depending on profits and losses in the future, so it's a good idea to try to get them under one corporate roof.

 

[dsm363]

There are potentially a lot of other benefits, particularly with respect to taxes. For example, if Tesla has lots of past losses and SpaceX doesn't, with a holding company SpaceX can use Tesla's tax credits and thereby lower the overall tax bill for Elon's companies. There are other various tax strategies that can be pursued with this type of corporate structure depending on profits and losses in the future, so it's a good idea to try to get them under one corporate roof.

Wouldn't sharing technology be easier as well (less need to lengthly agreements..etc)?

 

[CapitalistOppressor]

Electric planes!

+1

I actually think that's a realistic possibility. Nobody seems to take him seriously when he talks about his supersonic electric VTOL passenger plane (I can't imagine the reason for skepticism :smile , and even serious engineering forums just sort of move past the concept and start discussing other possibilities.

But Elon seems to think it will work, and he has made comments to the effect of "when" he starts the electric plane venture, such and such will happen. And when you consider that his various ventures are now on the cusp of generating billions in returns for him, while also lowering his personal workload, he looks set to be able to begin a multi-billion development of his e-plane pipe-dream.

Whether you think it will work or not, there are undeniable synergies between SpaceX and Tesla if you are wanting to create a new aerospace company based on electric propulsion. Even if he isn't able to get it in the air, most of the R&D spent on battery development and high performance electronics will likely redound to the benefit of Tesla in the long run.

 

[Arnold Panz]

Wouldn't sharing technology be easier as well (less need to lengthly agreements..etc)?

Yes, and back office functions (payroll, accounts payable, treasury, legal etc.). These are the "synergies" that drive many corporate deals, but in this case with no debt from an acquisition, it could actually be a real benefit to both companies to come together this way. There are complications also, particularly because it essentially makes SpaceX related to a public company, so I'm sure Elon is considering how to protect it from the prying eyes of Wall Street investors.

 

[dsm363]

Yes, and back office functions (payroll, accounts payable, treasury, legal etc.). These are the "synergies" that drive many corporate deals, but in this case with no debt from an acquisition, it could actually be a real benefit to both companies to come together this way. There are complications also, particularly because it essentially makes SpaceX related to a public company, so I'm sure Elon is considering how to protect it from the prying eyes of Wall Street investors.

Thanks. I thought he planned to take Space X public too soon (once all initial launch missions were successful) so that might help the situation.

 

[JRP3]

The Tesla Supercharger, to be unveiled in a few months, will do a lot more than anyone expects.

Heee, this makes me giddy :smile:

 

[joefee]

EM "The Tesla Supercharger, to be unveiled in a few months” I thought it was within 30 days … i.e. September ??? Say it isn’t so!

 

[Todd Burch]

The Tesla Supercharger, to be unveiled in a few months, will do a lot more than anyone expects.

Since some are expecting battery swapping, I wonder what that means?

 

[Norbert]

Since some are expecting battery swapping, I wonder what that means?

That the stations will offer WiFi.

 

[JRP3]

EM "The Tesla Supercharger, to be unveiled in a few months” I thought it was within 30 days … i.e. September ??? Say it isn’t so!

Hmm, yeah good point, I was focused on "do a lot more than anyone suspects".

 

[NigelM]

New article: Elon is considering a "Holding company for Tesla and Space X shares"

What will that do to stock prices?? What is the benefit?

elon-musk-says-he-may-form-holding-company-for-tesla-spacex

Good question. IMHO, putting two inherently risky enterprises into one corporation actually makes the investment less risky; and there's also some great marketing opportunities. I was answering some questions about my Roadster last night and went through the usual:

Q: What is it?
A. It's a Tesla.
Q: Who makes it?

Imagine if you could answer that second question "SpaceX"...you'd add a wow factor.

 

[bonnie]

Good question. IMHO, putting two inherently risky enterprises into one corporation actually makes the investment less risky; and there's also some great marketing opportunities. I was answering some questions about my Roadster last night and went through the usual:

Q: What is it?
A. It's a Tesla.
Q: Who makes it?

Imagine if you could answer that second question "SpaceX"...you'd add a wow factor.

Laughing. I have that conversation a LOT.

 

[Doug_G]

Laughing. I have that conversation a LOT.

No kidding.

 

[gg_got_a_tesla]

What are the obstacles to this parent holding company approach?

- Will TSLA shareholders approve it? They may be happy if the SpaceX magic of late rubs off on the TSLA stock, I suppose.

- Will SpaceX investors like it? Could any missteps on the Tesla front in the near future impact SpaceX's prospects?

- And, vice versa for that matter; what if SpaceX's future rocket launches fail?

- Where's the synergy? In terms of technology sharing, employee cross-pollination and such? Does that need to be justified to anyone?

- Is this the first step towards selling both companies out to Apple?! (as has been discussed rather passionately in the past) I'm only half-joking, of course

 

[Thumper]

Tesla can never be sold to anyone unless Mercedes declines to buy it first. Remember they got right of first refusal when they put money into TM.

 

[joefee]

What are the obstacles to this parent holding company approach?

- Will TSLA shareholders approve it? They may be happy if the SpaceX magic of late rubs off on the TSLA stock, I suppose.

- Will SpaceX investors like it? Could any missteps on the Tesla front in the near future impact SpaceX's prospects?

- And, vice versa for that matter; what if SpaceX's future rocket launches fail?

- Where's the synergy? In terms of technology sharing, employee cross-pollination and such? Does that need to be justified to anyone?

- Is this the first step towards selling both companies out to Apple?! (as has been discussed rather passionately in the past) I'm only half-joking, of course

Apple is my next largest holding, so I would still own TSLA …. but instead of becoming TSLX it would be called APLX !

 

[brian45011]

Tesla can never be sold to anyone unless Mercedes declines to buy it first.

IIRC, that right lapses in June, 2013.