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TSLA Market Action: 2018 Investor Roundtable

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Interesting statement by the board. Torpedoes one short FUD, that the board didn’t know about it. Also the reference about financing was also good.

Btw, won’t the Board have to form a special committee composed of non executive members to evaluate any and all offers going forward? They can’t just take Elon’s proposal, they have a fiduciary duty to look at all potential buy out offers now. This will soon be taken out of Elon’s hands, won’t it?
 
edit:
  • Note the past tense for "addressed the funding", i.e. I believe this means that the board sees funding as secured.
  • Also note that the board confirms that the offer is legit and is being considered. It's not a Twitter joke or bluff by Elon.
  • Obviously the board is an independent entity separate from the buyout consortium of the buyers, and board approval has to be in the interest of shareholders - so Tesla board approval could not be given yet (nor expected), but this is giving Elon's announcement plenty of legitimacy: those who do not trust Elon's word might trust the word of a certain James Murdoch.
Are you joking? Do you understand what "addressed" means? It means Elon mentioned funding. It means absolutely nothing. This statement was designed to say absolutely nothing substantive about funding.
 
I’m in kind of a funny situation: My regular stocks are soaring, while my leaps are crashing. I’m holding leaps with strike prices well above $420. I assume they are tumbling because $420 is regarded not only as a floor, but also as the ceiling.

Anybody has any great advice for those holding options with strike prices above $420? Thanks
 
A consortium with ~ 50% of the shares would beg to differ.. (though they did get in <420)

Huh...
If you were a consortium and planned to take Tesla private, and needed to buy out people at $420, but the stock was currently in the $300's, would you not buy up as much as possible to reduce the amount you would need to pay later? If so, could it be they have cornered 100% of the float, and the only trading that has been occurring has been with borrowed shares?

Have to make an announcement if one person *or an organized group* corners 5% of the shares outstanding. That SEC rule is still enforced.

That said... I calculated a while ago that the number of shares held by "weak institutional longs" was roughly equal to the number of shares sold short (maybe 1 to 10 million shares larger). Since then the Saudis have bought 3%, and an unknown consortium could have bought any amount less than 5%.

Um... I don't think there are going to be enough shares for the shorts to buy, not unless the price goes up further.

Is there any reason for the consortium to NOT have already acquired 100% of share count?
That's the reason.
 
I think whoever does bid on the company will probably also see the value in Tesla going private. Definitely could be wrong here. You raise a very interesting point that I haven’t seen mentioned yet. I honestly wouldn’t be opposed to Apple buying Tesla though. I’ve thought it seemed like a logical move for Apple for years now.
A Tesla is the closest thing to an iPhone there is in the auto world.

from ROI perspective
good for apple good for tesla

from innovation at speed perspective
good for apple bad for tesla

long view for me is, i’m not really a fan of aapl (or anyone really) consuming tsla, despite the roi i’d get

i may be able to be persuaded, depending on circumstances. tesla has the ‘it’ factor that NOBODY else has, or has had in a looonnggg time. that still means something. and yes, everyone has an iphone, but apple doesn’t have the same mojo since jobs, even though they are a seemingly unstoppable beast. even tesla, once mainstream, may lose that ‘juice’ that we (early adopters) all recognize now.
going private may preserve that, along with the explosive growth.

without knowing all the details yet, i’m leaning towards taking chances with private stock and the growth without the same BS obstacles to overcome, with less liquidity...
the only obstacles are the business, operations, and production challenges, not the schemers and media nonsense.

i think being taken over is kind of a compromise between current situation and being private. they’re still out of the limelight somewhat, but are subject to the speed of the company that consumed them. if a takeover was handled successfully, that company would give tesla the same, or at least as similar as can be, autonomy that it has now. i don’t think apple would be best at providing that. some people think google would be. or maybe it’s an investment consortium that would? we’ll see
 
If you are one of the parties that have entered an initial agreement with Leon for privatization buyout, that would make you an insider who are subject to insider trading rules I assume.


A consortium with ~ 50% of the shares would beg to differ.. (though they did get in <420)

Huh...
If you were a consortium and planned to take Tesla private, and needed to buy out people at $420, but the stock was currently in the $300's, would you not buy up as much as possible to reduce the amount you would need to pay later? If so, could it be they have cornered 100% of the float, and the only trading that has been occurring has been with borrowed shares?

So:
Announce $420
Price goes up
Shorts forced to cover above $420, those that want out of TSLA sell to the shorts, eliminating a position that need to be absorbed.
Final tally: if there are more short shares than shares of people who want out, there is high cost problem for shorts. If there are more getting out shares than short shares, the consortium only needs to buy the difference...

Is there any reason for the consortium to NOT have already acquired 100% of share count?

Not an advice, but this makes me either very worried (for shorts), or very impressed.
 
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