9 votes

Tesla Board of Directors are now considering taking Tesla private at the request of Elon Musk

Posted by ReleaseIncider
Tags: tesla, stocks, finances
https://www.cnbc.com/2018/08/08/if-you-invested-1000-dollars-in-tesla-in-2010-heres-what-youd-have-now.html

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Title
If you invested $1,000 in Tesla in 2010, here's how much you'd have now
Authors
Shawn M. Carter, Emmie Martin
Published
Aug 8 2018
Word count
449 words

8 comments

  1. [3]
    Neverland
    (edited )
    Link
    Here is one part of the entire deal that does not make to me: Musk said that he did not want to force anyone to sell, and hoped that all current investors would stay. If all current investors stay...

    Here is one part of the entire deal that does not make to me:

    Musk said that he did not want to force anyone to sell, and hoped that all current investors would stay. If all current investors stay then there would be no sale to go private, correct?

    edit: I guess he might mean that TSLA shareholders could vote to go private, and keep their shares via a scheme similar to the way SpaceX employees own the company? This would also keep the buyout price much lower, correct?

    3 votes
    1. [2]
      Deimos
      Link Parent
      So much of this doesn't make sense to me. This article on Axios earlier today does a pretty good job going over some of the interesting parts of it. And apparently the SEC is looking into it now.

      So much of this doesn't make sense to me. This article on Axios earlier today does a pretty good job going over some of the interesting parts of it. And apparently the SEC is looking into it now.

      3 votes
  2. ReleaseIncider
    Link
    Elon set the target price for privatization at $420 a share and the company would be valued at $71.6 billion.

    Elon set the target price for privatization at $420 a share and the company would be valued at $71.6 billion.

    2 votes
  3. [4]
    Neverland
    Link
    Complete speculation on my part, but Tesla would also do better during a stock market downturn if it was privately held, correct?

    Complete speculation on my part, but Tesla would also do better during a stock market downturn if it was privately held, correct?

    1. [3]
      MimicSquid
      Link Parent
      Given that the stock market is explicitly made up of publicly traded companies, yes. But also, a drop in the valuation of a stock only matters to a company when they want to sell more shares to...

      Given that the stock market is explicitly made up of publicly traded companies, yes. But also, a drop in the valuation of a stock only matters to a company when they want to sell more shares to gain cash. If a company is doing well internally and they don't want more liquidity nothing the stock market does will really change their success.

      4 votes
      1. [2]
        Neverland
        Link Parent
        Given Telsa's aims of dominating multiple markets: EVs, stationary storage, solar generation, I assume that they would like to raise money at some point in the future.

        But also, a drop in the valuation of a stock only matters to a company when they want to sell more shares to gain cash.

        Given Telsa's aims of dominating multiple markets: EVs, stationary storage, solar generation, I assume that they would like to raise money at some point in the future.

        1 vote
        1. MimicSquid
          Link Parent
          Possibly, but theorizing about the specific success of Tesla's future endeavors as related to their private or public ownership is shaky.

          Possibly, but theorizing about the specific success of Tesla's future endeavors as related to their private or public ownership is shaky.

          3 votes