Please tell me you shorted

It wouldn't disprove the fundamental analysis but it sure would destroy the trading decision.

Im short and down so biased here.


But how does an awkard blog post allow for trading to resume?


He stated funding secured publicly then didnt release any information on source if funding?



Honest question because something sure seems sketch here

You would think an 8k is needed .. i have never seen anything like this

I've been absolutely wrecked. GG Elon.

if it's debt-funded every b$ they buy back is about 70m$ interest per year just to get rid of shorts and financial disclosure obligations.
how can this be good for the company longterm?!

Let's take a moment to point and laugh at people who bought their most recent debt issue at 5% interest.

me either with a going private or merger. If the market believed it TSLA would be trading at about 417 to 419 a share if trading resumed after the halt. I have no TSLA position.

Why would you assume it's debt funded?

i'm not really assuming anything. But since they haven't offered any explanation yet how this will be funded, I'm using this as a benchmark for what they would need to offer an investor to fund this.

im imagining a celebration with a Saudi prince or two , over drinks and leggy blondes , after the 2 billion , and one of them promise.. "yeah, let's go private"
"420, what a number " ..


I kinda promised a friend to buy his car note and charge half the interest one time while at a strip club with him.. he held me to it .. So i guess it could happen .

shorts still having fun i see

This stock is legendary, one of the most entertaining stocks to follow ever. Can't wait to see what this new chapter brings.

(I'm short @ $360)

ToothSayer was online 3:55 PM but I guess he didn't feel like calling Musk a fraud or Tesla a joke today.

Or maybe he's spending his effort trying to make some money

He has all the time in the world to write whole essays about why Tesla sucks but now he wants to make some money. Seems legit.

He sure as hell was long weekly call options...

Does anyone that post in this thread actually own the stock and/or have bullish positions? First of all congrats. Would love to hear your thoughts about today, plans for your stake, how you are protecting your positions, and like I posted on the last page for bears, what would it take for you to get out and/or turn bearish? Would the deal falling apart be one of those things or is the company not being taken private at enough premium?

They could probably cover at somewhat less than $420 but not that much less.

Proven right or wrong in what sense? Btw I doubt if this will actually happen i.e. TSLA going private.

lol, What a great car and a fun stock! Sorry to all the shorts.

FYI Below is his letter to employees:

Taking Tesla Private
August 7, 2018
The following email was sent to Tesla employees today:

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

I'm bullish and have sold only small amounts of my position since 2013 with the thesis being Model 3 demand would be off the charts given how many folks who purchased the Model S had never paid more than 50k for a car. I think it's prudent to take profit at 420 and will probably take half off the table and hold the rest for awhile.

The only thing that would have caused me to turn in the past was a) slowing demand b) people not loving their Model 3's or c) Elon Musk leaving as the CEO or dying. The deal falling apart would be a bayesian datapoint that 420 is too much to pay, but it wouldn't turn me bearish.

Fundamentally, with M3 at 200k, S and X at 80k, and energy growing faster than automotive that's a 30b revenue company at 25% margins with a call option on autonomy and future roadmap. There's also a non-zero chance vertical integration results in big manufacturing breakthroughs where they're significantly cheaper than the competition. Think Amazon going full vertical integration with fulfillment centers vs distribution centers. Ironically, Amazon was on the brink of bankruptcy when Bezos made similar bets. On the flip-side, they may not hit sufficient scale to have vertical integration matter (think NeXT), but I'm betting given how much folks love their Teslas, the delights they're able to build into the product w/ vertical integration, and the looks on the next generations faces and their enthusiasm for the brand, that the premium market will be big and Tesla will be synonymous with electric before other brands can catch up.

Anecdotally, Tesla drivers (and I'm one of them) don't just buy one car, they end up being super loyal to the brand and not even considering other cars.

Guess Elon doesn't realize ~60% of shareholders are funds that can't invest in private companies ¯\_(ツ)_/¯

And he's going to file those pesky Qs and Ks either way:

https://www.sec.gov/reportspubs/inve...pstockhtm.html

Also: https://www.sec.gov/divisions/corpfi...-3-interps.htm.

At least my downside is capped

If Elon isn't full of it, it can only fall apart if shareholders think it's worth more

One thing I've been thinking about is there's a non-zero chance that the Saudis would want to do a hostile takeover and just shut the company down (they have tons of incentives to do so). By taking it private, Elon guarantees that it never happens.