StealthP3D
Well-Known Member
Thoughts re: SpaceX/Starlink:
If Starlink turns into a cash machine... is there anything that could stop Elon from just using SpaceX to buy up Tesla, bit by bit on the open market? Not that they would want to, but could any SpaceX investors stop him if they did?
It's very difficult to buy up a company on the open market, even more difficult if the company has a promising future and the person doing the buying is intimately familiar with the financials and future outlook. Musk would have to disclose his increasing stake (or SpaceX's stake) via SEC filings. The price would shoot through the roof before he could acquire a controlling stake.
That's why buyouts are almost exclusively for a nice premium over the current market price - to avoid the inevitable bid-up. SpaceX investors could certainly stop any attempt by Musk of a SpaceX buyout attempt but I'm not sure why they would want to. Perhaps because individual SpaceX shareholders could by TSLA on the open market if they wanted an increased stake in TSLA. But there would be certain advantages to a private TSLA (it could easily be taken private with a large enough base of agreeable shareholders).