Boom - short squeeze is definitely on now... buckle up everyone
"Am considering taking Tesla private at $420. Funding secured."
Ha ha ha.
GOOD. Im so sick of all the negativity.
Did he make a AM/PM mistake in setting up his tweet? Good morning makes me think it was timed explode overnight with a nice surprise for the shorts.
Anyway no news about who the banker is and who is underwriting it. Looks like it is not any US bank or investment firm. Might be an European bank. Wish he came out with a clean sweep fait acompli.
Anyway if the privatization negotiations are at 420, or 500 suggested by the German bank, the shorts are screwed, the stock will surge past 400, and the call options will be exercised, and they have to fork over the cash.
All I can picture is the end of 'It's A Wonderful Life'. All Elon has to do is ask Tesla owners (and those of us waiting), to help buy the company. I'll bet he can secure funding with that.
@gar1116 : Would someone please check if there is a gofundme page for Elon to buy Tesla?
Hope fanboys are right. Have call options.
If EM made an inaccurate statement about the funding, watch out.
I love the shorts taking it on the chin, but not at all wild about the Saudi's buying Tesla. I don't like that idea AT ALL.
@gballant4570 : If oil loses its effect on world economy, Saudi's are no more dangerous than any of the other unstable regions in the world.
They know it too, so they are diversifying. If Saudi's fortunes are tied to the economic well being of the world, they would behave nicely and they would be tamed.
Let's not jump to conclusions--we have no idea who the backer(s) are at this point. Much more likely they're friends of EM.
I can't get the image of Steve Jobs putting Bill Gates up on the big screen to the shock of the audience.
@ravisundaramam "Did he make a AM/PM mistake in setting up his tweet? Good morning makes me think it was timed explode overnight with a nice surprise for the shorts."
Not sure I follow here. His 'good morning' tweet was sent at 10:28 a.m. PDT.
Further - IMHO this was a very bold, strategic and positive move. Chances are good that EM is playing the long game with a very well thought out plan already in place to benefit ALL stakeholders. Seems like the required capital (in whatever combination) would almost certainly be available from numerous sources.
Sure will be interesting to watch it play out....
The Saudi buying Tesla is the last FUD we will be hearing from shorts before they all got buried alive.
@Kathy Applebaum: I dont know what to say. There is no hard news after the tweet, trading halt, letter to employees,
It is all speculation. We should wait and see.
I'm looking forward to Tesla going private if the net effect is fanbois no longer have their precious boogeyman anymore. So tired of every post her revolving around shorts as if they're goblins hiding under the seat-cushions.
Also so tired of every short post revolving around people who stay positive as some sort of fanboy illusion of total ignorance. Welcome to the club.
I'm curious about how things would work in the event they actually go private. In his email to his employees he said no one would be forced to divest. That they would convert shares to some sort of private fund. Shareholders would have the ability to buy/sell at 6 month intervals, as they do with SpaceX today.
What determines the value of the shares? Is it an internal market where internal supply/demand determines that? With no SEC regulations, or public reporting requirements, how does an internal investor decide how well things are going? Does Tesla only have to come up with enough funding to cover shareholders who decide to divest? Obviously I don't have a corporate finance background so I'm probably oversimplified in my thinking -- maybe there are forum visitors from SpaceX or just knowledgeable, to relate their experiences...
Take the $420 if it goes public. With the cash flow difficulties you could otherwise take a hit.
Spuzz: I think with what is being envisioned they would probably have to do similar reporting as to what they do now, but I am not even worried about that frankly: the big boys will keep them honest and retail investors make up a small percentage of TSLA holders today and that probably doesn’t change if Musk can get what he’s suggesting can be done.
But how they get money from me as a generic retail investor into such an arrangement is basically unprecedented. Admittedly we can invest in private equity arrangements now but how this works in this structure of building an internal market of sorts, weird. Also SpaceX doesn’t work that way today either.
To wit, I can’t buy or hold shares in SpaceX; I can buy shares of Fidelity’s Growth Fund and get some exposure to it but that’s access through a mutual fund and they hold a bunch of other equities in their basket.
it’s just plain weird.
"Let's not jump to conclusions--we have no idea who the backer(s) are at this point. Much more likely they're friends of EM."
Well, I don't know if Warren Buffet is EM's friend or not, or is willing to back him, but Berkshire Hathaway is currently sitting on $110B cash that Warren has stated they don't know or haven't decided on what to do with yet. If Elon says he already has the money lined up, this would be a good source for it.
"Who says the Saudi's aren't buying it to shut it down?"
As they are buying only 3 - 5% stake, they won't have controlling interest enough to force the company to close.
Wealthiest Elon's friends are the two Google guys. Elon used to crash at Page's apartment when he's in town. They also introduced Elon to VC's in the early days. Tesla and Google are some kind of competitors in autonomous driving tech although Google's biggest enemy has always been Apple. So anything is possible.
I wonder if Nikola gets a royalty check in heaven for every time his name is mentioned? That's where the serious funding could source from.
Interesting read @ cleantechnica
How much money does Elon really needs to raise for buyout if a lot of shareholders will stay once taken company private? And have shorts fund some of that buyout when they have to cover @ 420... I must be missing something here, but I'd be really scared if I was shorting TSLA...
When it becomes clear the deal is ther even people who want to cash out would want to hold till the last day when they could get paid the full 420 by Tesla. Where those shorts are going to buy shares to cover? There is a good possibility that the price will be pushed to higher than 420. In that case Elon and investors would be more than happy to raise the offering price which would push the price even higher.
@dmitriyM3 Exactly. I have discussed this issue on another thread with the shorts possibly funding the going Private move. In fact it could add more cash to Tesla's balance sheet especially since cash flow positive in coming in the next 6 months. I am really grateful for the shorts in a way providing discounted shares and they really gambled on such an enormous short position. Perhaps some are still in denial or the anti Tesla has lots of money to lose.
This proves once again never try to pick a fight with Elon. You will sure lose. He can see way farther than you could.
Playing against Elon or his staff is like playing Chess against Magnus Carlsen or Garry Kasparov
[He can see way farther than you could.]
Like he saw everything that could go wrong with flufferbots and the falcon-wing-doors. A clairvoyant superhero he is.
Jealous much? I like it when a person has a goal and can improve and who has no ego issues like some.
If you don't make a mistake once in awhile you are not trying.
"Wealthiest Elon's friends are the two Google guys. Elon used to crash at Page's apartment when he's in town. They also introduced Elon to VC's in the early days."
@carlk. It sounds like you know all these people personally. Have you socialized with them?
Radone, you should know that your comments are hurting your credibility.
"If you don't make a mistake once in awhile you are not trying."
@Mike3. So, if your doc makes a mistake and causes you harm, he was just trying?
I love the way fudsters ALWAYS misinterpret meanings to argue. Big difference making a fancy door vs. a kidney transplant.
Better leave analogies to those better equipped to handle it.
@mos: "Like he saw everything that could go wrong with flufferbots and the falcon-wing-doors. A clairvoyant superhero he is."
looking forward to not having @mos around when/if Tesla goes private... his job here would be done...
I like how fanbois just act dismissive when they realize they made a stupid comment to begin with.
dmitriyM3 Me too.
@RadOne what's your call position? Am happy to see a non-fanboy on the other side...
there is a reason why they call it 'practicing' medicine.
***@carlk. It sounds like you know all these people personally. Have you socialized with them?***
No need for that clumsy sarcasm even if you don't like the fact. Everyone who has some interest in Tesla and Elon knows this. They are all in Ashlee Vance's semi-official Elon Musk biography "Elon Musk: Tesla, SpaceX, and the Quest for a Fantastic Future ".
@carlk. I thought because you referred to Mr. Musk and the others by their first names, you were familiar with them.
@dmitriyM3. I sold my calls. Made a little before it started to go down again. I won't buy any more options until I can get a clearer picture on direction.
@RadOne, Quote: "So, if your doc makes a mistake and causes you harm, he was just trying?"
The answer to your question, which you seem to think is hilariously rhetorical, is "yes". I'm not a doctor, so I'm not trying to perform surgeries and medical procedures on people, so I can be really sure that I will never have a medical malpractice situation like that. Doctors DO those things, so they will have some instances of that happening. Can you really not get your brain around that?
Michael Jordan has missed more basketball shots than you have, etc. etc.
I think he means not everyone has the same allowed tolerances. A .300 batting average might be great for baseball but not for an airline pilot. Some jobs require more precision than others. A letter may be delivered to the wrong address but you better not operate on the wrong patient.
Mistakes may happen because we are human but expectations differ greatly.
"No need for that clumsy sarcasm even if you don't like the fact...."
Carl. You can't read Musk's mind and imbuing him with superhero-like qualities is both immature and a little creepy.
Correct me if I am wrong here, but if someone buys shares on the open market, that money does not go into Tesla’s comfier so, correct....?
IF that is in fact true, then why are people continually spouting off about the Saudis being one of the backers for Tesla going private?