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nipper

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You would think that SEC would be asking him a few questions right about know if he didn't (first) inform the market before his tweet.

 

This is the content of his email to staff

 

Earlier today, I announced that I'm considering taking Tesla private at a price of $420/share. I wanted to let you know my rationale for this, and why I think this is the best path forward.

 

First, a final decision has not yet been made, but the reason for doing this is all about creating the environment for Tesla to operate best. As a public company, we are subject to wild swings in our stock price that can be a major distraction for everyone working at Tesla, all of whom are shareholders. Being public also subjects us to the quarterly earnings cycle that puts enormous pressure on Tesla to make decisions that may be right for a given quarter, but not necessarily right for the long-term. Finally, as the most shorted stock in the history of the stock market, being public means that there are large numbers of people who have the incentive to attack the company.

 

I fundamentally believe that we are at our best when everyone is focused on executing, when we can remain focused on our long-term mission, and when there are not perverse incentives for people to try to harm what we're all trying to achieve.

 

This is especially true for a company like Tesla that has a long-term, forward-looking mission. SpaceX is a perfect example: it is far more operationally efficient, and that is largely due to the fact that it is privately held. This is not to say that it will make sense for Tesla to be private over the long-term. In the future, once Tesla enters a phase of slower, more predictable growth, it will likely make sense to return to the public markets.

 

Here's what I envision being private would mean for all shareholders, including all of our employees.

 

First, I would like to structure this so that all shareholders have a choice. Either they can stay investors in a private Tesla or they can be bought out at $420 per share, which is a 20% premium over the stock price following our Q2 earnings call (which had already increased by 16%). My hope is for all shareholders to remain, but if they prefer to be bought out, then this would enable that to happen at a nice premium.

 

Second, my intention is for all Tesla employees to remain shareholders of the company, just as is the case at SpaceX. If we were to go private, employees would still be able to periodically sell their shares and exercise their options. This would enable you to still share in the growing value of the company that you have all worked so hard to build over time.

 

Third, the intention is not to merge SpaceX and Tesla. They would continue to have separate ownership and governance structures. However, the structure envisioned for Tesla is similar in many ways to the SpaceX structure: external shareholders and employee shareholders have an opportunity to sell or buy approximately every six months.

 

Finally, this has nothing to do with accumulating control for myself. I own about 20% of the company now, and I don't envision that being substantially different after any deal is completed.

 

Basically, I'm trying to accomplish an outcome where Tesla can operate at its best, free from as much distraction and short-term thinking as possible, and where there is as little change for all of our investors, including all of our employees, as possible.

 

This proposal to go private would ultimately be finalized through a vote of our shareholders. If the process ends the way I expect it will, a private Tesla would ultimately be an enormous opportunity for all of us. Either way, the future is very bright and we'll keep fighting to achieve our mission.

 

Thanks,

Elon

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Not without good reason, IMHO, since it's also one of the most hyped stocks of the stock market. I think he would do everyone a favour if he did go private. However, I personally think it's all bluff and an attempt to get even with the shorts he has been waging war with for so long. As per previous post, this tweet of his cost shorters (on paper at least) billions

 

Elon MuskÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s tweet about going private costs Tesla short sellers $1.3 billion

Tesla shares rose 11 percent Tuesday, meaning short sellers lost $1.3 billion in mark-to-market losses, according to estimates from S3's head of predictive analytics Ihor Dusaniwsky.

Dusaniwsky said the cumulative mark-to-market paper loss for Tesla short sellers is about $3 billion this year and 35 million shares are held short.

 

I've read an opinion piece that suggests theTSLA SP needs to be above $360/per share by 1 March 2019 - that's the conversion price for $920 mil of convertible debt, due then. If the SP does not cross that $360/share TSLA are required to repay bondholders with CASH instead of shares. TSLA have sufficient cash on hand ATM, but they do burn it at a rapid rate and their revenue predictions have never stacked up So, if they don't have enough come March next year and the SP is below the $360/share they'll need to do another cap raise.

 

The suggestion therefore is the taking TSLA private is all smoke and mirrors - the real issue is keeping the SP up over $360/share As can be seen from the TSLA chart below, he did manage to reach/exceed the $360. Time will tell :biggrin: Meantime hes bound to entertain us further

 

But if Elon really wants TSLA to operate at its best, free from as much distraction, he should simply stop tweeting - how any CEO can find time to do what he does is beyond me

 

Round one = TSLA1, shorters0

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You would think that SEC would be asking him a few questions right about know if he didn't (first) inform the market before his tweet.

 

Bingo

 

Tesla Inc (NASDAQ:TSLA) will face increased scrutiny from regulators in the wake of a tweetstorm by CEO Elon Musk on Tuesday claiming the electric-car maker had funding to be taken private, according to a Wall Street Journal story.

 

Citing unnamed sources, the Journal reported that the Securities and Exchange Commission is examining whether Musk's claim that he had secured funding to go private was truthful, and inquired why the disclosure was made on Twitter and not in a regulatory filing.

 

Bloomberg are now carrying the story about the $920 million note due in March

 

Investors in an arcane corner of the bond market are latching onto one important detail lost amid all the chaos surrounding Elon MuskÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s bombshell Tuesday: Even if he ultimately fails in his effort to take Tesla Inc. private, the company could win much-needed debt relief.

 

ThatÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s because more than a third of the companyÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s approximately $11.5 billion debt was issued as convertible bonds -- securities that creditors can exchange for equity if the stock reaches a certain price level. Coaxing investors to take equity, instead of demanding repayment on the money theyÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢re owed, would help ease the financial pressure on a company thatÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s burned through more than $600 million in six of the past seven quarters.

 

One of the most imminent of these bond maturities -- a $920 million note due in March -- has a conversion price of $359.87 per share. The stock was priced some $18 below that level at the start of trading yesterday before Musk began tweeting. And within minutes, it had surpassed it.

https://www.bloomberg.com/news/articles/201...-to-escape-debt

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Tesla: peak Iron Man? :biggrin:

Ben Mcgarry

Totus Capital

about 23 hours ago

For many years, Tesla has defied conventional financial wisdom, and betting against Elon Musk has been a loserÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s game. However, we believe right now the market is witnessing peak Iron Man, and that the time has finally come for the great Tesla short

 

The bear case on Tesla is well understood, and includes high cash burn, competition catching up, and growing pains for the Model 3.

 

But when a CEO under extreme pressure lobs a light-on-detail privatisation proposal, the potential payoff for a short position improves.

 

Investors in SurfStitch, Quintus and BWX have seen this movie before.

 

And as Marvel fans know, even Iron Man doesnÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢t win them all

.

https://www.livewiremarkets.com/wires/tesla-peak-iron-man

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