Boom - short squeeze is definitely on now... buckle up everyone
"Am considering taking Tesla private at $420. Funding secured."
I don't want to sell my shores for $420. A short term gain but current shareholders will be much better off long term if Tesla remains publicly held.
@sroh: Same here. I've been holding and accumulating for a long time, don't want to exit at 420. I have my sight at 3000 in ten years so I can buy an island somewhere in South Pacific and retire.
Interesting that "420" is also code for weed smokers. Is someone having some fun???
This gain will be lost when people start to realize that this electric car company just got bought by oil-families in the Middle East.
Holy crap he is a cowboy. Not sure if that is a scare tactic or if he is serious. Doesn’t that cut him out of any possibility of his absurd compensation package where he has to tenfold market capitalization in ten years (or something like that)
I think this is a good way to squeeze out all the shorts. While retaining an option to keep it public after all.
Could it be a brilliant strategy? What ya'll think?
@Magic 8 Ball: Hope its not just a simple "420", but who knows... I'm gonna stick w/ brilliant strategy for now...
Elon frequently makes radical claims on Twitter, and almost ALWAYS follows through with them. I got my popcorn out...
@dmitryM3 I will definitely not go against putting Elon Musk and brilliant in the same thought. I will say this has been very entertaining and I don't think we are at the first intermission yet.
Waiting for him to say China will finance the plant over there for him as his next tweet to the shorters.
Wall street wont be making any money off of him from issuing bonds.
@VLTWGGN - Don't waste your money on pop corn. Put everything in TSLA instead! :^)
I, as others above, am hoping he doesn't do it, so I can directly participate in the Tesla story longer. I like having some skin in the game with TSLA. It has been good for me. I've never had a car company buy me a car before..
Then again: If he does take it private, and later they go public again, Musk might apply his customer loyalty philosophy again: He might make sure that we current stock and car owners get a shot at the new IPO.
As a fan I think private is better for the long run. You can focus more on innovation than appeasing investors.
Nasdaq halts trading in $TSLA shares. Says 'News pending', it might actually be happening!!!
I agree with @PhillyGal, private is better for Tesla-Energy innovation going forward. I am long on Tesla (TSLA) and want them to succeed.
Nah, I just put in an order to sell at $700 a share. If everyone already had orders to sell at twice the market price as suggested a while ago since it doesn't allow brokerages to "borrow" them to sell to the shorters, then they might not have enough shares available.
Trading halted. It is official. It is possible he tweeted to halt the trading to avoid giving time for shorts to cover their bets. 2.5 billion loss to the shorts, on top of 1.1 billion at 350$ at the end of Q2 conf call. Total short loss since 2016 will be 6.5 billion.
Couldn't happen to a more deserving group as far as I'm concerned.
You mess with the bull.......
Looks like people can continue their investment in private tesla through some kind of private mutual fund managed by Fidelity, like SpaceX they say.
This is wild! I don't even know much about stocks but it's super fun to follow.
I still have all my shares on offer at $2666.00. :-)
@Magic 8 Ball - it's also Hitler's birthday. Maybe tying into the retweet of that parody video?
It is a totally stupid idea: Loading Tesla up with billions of dollars in debt just to punish the shorts.
You know - Elon did warn the shorts a not too long ago that something big was coming :)
Closest I ever came to buying or shorting TSLA was last year when it was around $315 I was going to buy a little, but I am a terrible stock picker so never did.
Must be rather alarming to be short tsla at this time.
the saudis won't shut down Tesla. Elon will remain CEO and the leaders on the Arabian Peninsula are exploring other rnd he his tweets wouldn't affect the price. the price may be a bit low as many think the company's value is closer to $530. This is a win all the way round if true. evenue streams and they can see what the future along with everyone else. Since the oil reserves are finite, Abu Dhabi and Dubai are going to tourism. It seems Elon will allow current shareholders to remain private investors if this goes through a
Elon is beyond amazing, he won't need all the money to buy it for long, he will let stock owners keep their shares but no voting rights. Never been done at this magnitude, go Elon.
Shorts and stupid payed off analysts can kiss his ass.
ROTFLMAO That is now my favorite Hitler parody yet! "Goddam cheat devices" what a line LOL.
You're all welcome, I sold on the pop last week. Ever want to know which way a stock is going to move? Do the opposite of me holding or selling on big spikes!
@Jayme - I've long toyed with the idea of creating a business model wherein subscribers to my company get to know what I'm about to buy or sell so they can do the opposite. Not sure it's legal, but... yeah. I'm sitting on 4 shares of TSLA (it's all I can afford) at an average price of just below $320.
I bought at the 210 range, sold at 300. No regrets on selling as I kept two shares for nostalgia.
I figured it was only a matter of time before Elon tweeted something stupid and I could get back in lower.
Love the idea of them going private but if this isn't something that's real he's going to be in big trouble with the SEC.
I had a stop order @$340 in and it hit this morning at 8:30... Whoops.
Yeah that is a real possibility @centurionusa. This does go perhaps beyond established SEC precedent and I don’t know if this was brilliant or batshit insane.
I think it goes to whether Elon’s personal Twitter can be considered an official statement by the company, and that is a really interesting question.
There may be serious repercussions depending how this plays out, and as a Tesla shareholder I am nearly aghast at the statement.
Everything might turn out Ok or this may end badly
LOL @sroh -
Looks pretty legit to me:https://t.co/kw4eHOJfBh
"Ends negative propaganda from shorts", *and* whatever mischief the 'sovereign wealth fund' was up to. "Hope all shareholders remain" ... we're in.
And NASDAQ has the hold lifting at 3:45
Shares resuming trading at 3:45
Ah. Thanks for the link, djharrington.
@jamey - Don't feel bad, my first stock attempt was buying Fitbit at $30... and subsequently chasing it with more shares at 25, 20, 15... it's been $5 ever since.
I wonder if the "[f]unding secured" for the buy out is from MBS -- Mohammed bin Salman (not mortgage-backed securities).
Based on the letter to employees, we the private investors will get the best option: sell at $420 or remain an investor of the private company. I also like to option that "external shareholders and employee shareholders have an opportunity to sell or buy approximately every six months" - this will give some room for liquidity in case the fund is needed.
I don't play chess, but I think this move is "check mate" for the shorts.
ravisundaramam | August 7, 2018
Looks like people can continue their investment in private tesla through some kind of private mutual fund managed by Fidelity
Many companies 401k's are in Fidelity - I'll bet many MANY people are already in the FSEVX Index fund. Below are the top 10 holdings of FSEVX
Top 10 Holdings
4.62% of Total Portfolio
LAS VEGAS SANDS CORP
PALO ALTO NETWORKS INC
SQUARE INC CL A
T-MOBILE US INC
WORKDAY INC CL A
DELL TECHNOLOGIES INC CL V
BIOMARIN PHARMACEUTICAL INC
@KP, thanks for that. LOL is right.
I haven't been this gleeful since taking delivery of our Model 3. :-)
I hope Jim Chanos gives an interview real soon - should be interesting to see what he says now. That is, if he doesn't jump out of a 10 story window first.
Chanos always says TSLA is worth zero. Maybe he will advocate now for Elon to get all outstanding shares for nothing?
Who says Saudis arent buying to close it down?
Totally irresponsible of EM. Stock going down. Best thing he could of done for the short sellers.