Elon Musk Considers Taking Tesla Private - Trading Halted in Tesla Stock

originally posted by: Alien Abduct

originally posted by: neo96
Tesla stock jumping makes no sense.

If it does go private sharelholders are sol.

It makes sense because stock traders know that if it goes private then the company(s) that have an interest in taking it private will offer a premium for the stocks. So if you buy now before it goes private then you stand a chance at making a substantial profit.

Nice. I have thousands in Stock. Seriously. This may be really good for me!

originally posted by: neo96
a reply to: Edumakated

A fool and their money are soon parted.

That company is going to end up like Delorean.

en.wikipedia.org...

The link you provided was a link to Tesla’s Wikipedia page and offered nothing to support your claim that Tesla is going to end up like Delorean.

I would certainly like to hear your argument as I own stock in Tesla.






AA

BOOM Elon is the man!!

a reply to: Alien Abduct

Try reading the legend at the right.

originally posted by: Aazadan
a reply to: BrianFlanders

Yes, but I was challenging your notion that people are used to buying older cars. They are not. And when people do buy older cars those cars aren't really that old.

People are used to being ABLE to buy older cars that are still useful. A car that can't be driven in the winter because the heater doesn't work because the system that controls it is obsolete is not very useful even if there's nothing wrong with it mechanically. Seems terribly short-sighted to design a $30,000 product with critical components that will be obsolete in just a few years. Basically, it's a $30,000 smartphone. Very stupid and wasteful.

Well, I mean, for the car companies, it's brilliant because they may have just found a way to force people to spend $30k on their products every five years. For the customer, it's a disaster if they can't actually afford a brand new car every few years or so.

People are used to BEING ABLE TO buy a car and keep it until it starts having major mechanical issues. That's a lot longer than 4 years for most cars. Obviously, not everyone does and most people would prefer to have a new car but it's nice to have the option to buy a car and keep it until it dies. I guess cars are getting too reliable. Unbelievable.

Think about this. By 2021, something like 85% of cars on the road are going to be new enough that they have backup cameras and blindspot detectors.

Previously known as mirrors and common sense. Has your mirror ever malfunctioned or failed to receive it's firmware update? Mine hasn't. I've never had a blind spot accident. I don't even like power windows. They're nice when they work but it sucks when they break and you have to pay someone a fortune to fix them.

originally posted by: neo96
a reply to: Alien Abduct

Try reading the legend at the right.

I seen the legend.
Could you jot down a paragraph or two to explain your argument?

a reply to: Alien Abduct

Explain a -$1.9 billion dollar net revenue?

Why since it's SELF explanatory.

Serious question for those in the know.

What would happen if I have Tesla Stock, I do. But it doesn't vest for another 4 years, fully? And they go private?

Does it get bought out, or does it just disappear and I get nothing? Don't have the documents in front of me and you'll see by they way I phrase my question I don't really understand what I'm talking about. LOl

originally posted by: Willtell
a reply to: FamCore

To be perfectly honest, I knew companies could go public, and could go bankrupt, but I didn't know a publicly-traded company could also go public (if the circumstances permitted). Now I realize how naive I was to never realize this.

You mean go private, referring to this you said above

"but I didn't know a publicly-traded company could also go public"

Yes, thank you for correcting me! My mind is a bit foggy today... thanks Obama! lol

originally posted by: DJMSN
Tesla Motors just secured 2 billion in funds from the Saudi's. Certainly will help the situation. Would make sense to privatize at this point. No more quarterly reports except to your private investors.

This alone could help right the boat as it would allow the company along with the fresh capital outside the company to reach those long term goals. They need to improve production capabilities as well as better support as in spare parts.

www.cnbc.com...

Actually, they didn't acquire any new funding. According to Zero Hedge's report, the Saudi's offered to invest $2 Billion in exchange for newly-issued shares, but Musk refused, so they bought their stake on the open market (which doesn't benefit Tesla).

As desperate as Tesla is for money, I can understand Musk being leery of the Saudis. Their empire is still built on oil, after all, so if I was running an electric car company I'd be suspicious as hell of their motives.

originally posted by: DexterRiley

originally posted by: bananashooter
I live near Silicon Valley and I see 100’s of Tesla’s, all I think is what’s going to happen to all of them when Tesla goes tits up. They probably will all be deactivated and “brick” and become worthless.

That happened to products sold by the X10 Wireless Technology Company a few years ago. As soon as they went bankrupt, a lot of their products stopped working because the licensing server went offline.

-dex

Given how heavily computer-controlled Teslas are (along with most other newer models), I'd be afraid that if Tesla goes bankrupt, owning one of their cars would be like owning a computer whose operating system is no longer supported. Nobody would be working to fix software glitches or patch security flaws, so at some point you (or your mechanic) might find yourself searching the internet for amateur software updates, or some unholy crap like that.

a reply to: neo96

It’s expensive to work out the the bugs in the beginning. I think that while Tesla is certainly a risk, I remain confident that they will do extraordinarily well with massive gains in the coming years.

The production line is run at maximum output, building cars at a rapid rate and then it’s shut down to inspect the vehicles for any flaws. The manufacturing process is then retooled to fix any problems that have been uncovered after which the production line is turned back on, and it’s running at full capacity again. Production may be slow for the first few months, but once a flawless run has been achieved, you can expect an instantaneous ramp-up, not a slow gradual one.

At the end of Q2, Tesla hit its production goal of 5,000 Model 3s per week which equals an annual rate of about 250,000. Elon Musk has stated the goal is to produce 500,000 Model 3s per year.

To put this in perspective, Tesla’s annual deliveries since 2012, rounded off are: 2,650, 22,300, 33,000, 50,000, 84,000, and 101,000 (2017). The first six months of 2018, Telsa delivered over 70,000 cars.

The big production uptick has taken longer than expected, but it does seem that the worst is behind us. When Tesla works out the kinks that turned up, we should expect production to continue to ramp-up quickly towards the annual goal of 500,000.

originally posted by: amazing
Serious question for those in the know.

What would happen if I have Tesla Stock, I do. But it doesn't vest for another 4 years, fully? And they go private?

Does it get bought out, or does it just disappear and I get nothing? Don't have the documents in front of me and you'll see by they way I phrase my question I don't really understand what I'm talking about. LOl

You could lose it or they might accelerate the vesting, depending on your company’s policy. You should check with your HR or financial department.

Zero Hedge's further reporting is very interesting. There's reason to suspect Musk may have pulled this story out of his @ss. Members of Tesla's board said only that they'd discussed taking the company private, and it sounds like things were still in a preliminary state. Also, none of the required regulatory forms have been filed, and despite the fact that this would be a $70 Billion deal (at least) no investors have stepped forward to say they're involved.

This is potentially a huge problem, because Musk said that financing was secured, and made it sound like a done deal. If he way lying, then he'll almost certainly get sued for stock market manipulation.

originally posted by: Alien Abduct
a reply to: neo96

It’s expensive to work out the the bugs in the beginning. I think that while Tesla is certainly a risk, I remain confident that they will do extraordinarily well with massive gains in the coming years.

The production line is run at maximum output, building cars at a rapid rate and then it’s shut down to inspect the vehicles for any flaws. The manufacturing process is then retooled to fix any problems that have been uncovered after which the production line is turned back on, and it’s running at full capacity again. Production may be slow for the first few months, but once a flawless run has been achieved, you can expect an instantaneous ramp-up, not a slow gradual one.

At the end of Q2, Tesla hit its production goal of 5,000 Model 3s per week which equals an annual rate of about 250,000. Elon Musk has stated the goal is to produce 500,000 Model 3s per year.

To put this in perspective, Tesla’s annual deliveries since 2012, rounded off are: 2,650, 22,300, 33,000, 50,000, 84,000, and 101,000 (2017). The first six months of 2018, Telsa delivered over 70,000 cars.

The big production uptick has taken longer than expected, but it does seem that the worst is behind us. When Tesla works out the kinks that turned up, we should expect production to continue to ramp-up quickly towards the annual goal of 500,000.

Starting a mass market car company from scratch hasn't been done in probably 100 years. The capital required is extreme. I do think they will be able to make it work long term. Much like Apple, they seem to have their finger on the pulse of what people want with electric cars.

I think their biggest threat will be legacy car companies offering a legitimate substitute product (which hasn't been done yet), but those companies don't seem to be breaking any new ground. The next couple of years will be interesting as Tesla has clearly shown there is a market for performance and luxury electric cars.

A few of my neighbors have Model S's and X's and everyone raves about them. I'm strongly considering a Model X to replace my wife's Lexus. I'm starting to see more and more Model 3s out on the street here in Chicago. The reviews of the Model 3 have been pretty favorable from what I've seen.

a reply to: AndyFromMichigan

For anyone weary of ZeroHedge, Marketwatch has also covered the legal concerns about what Elon did stating "Am considering taking Tesla private at $420. Funding secured": link

originally posted by: FamCore
a reply to: AndyFromMichigan

For anyone weary of ZeroHedge, Marketwatch has also covered the legal concerns about what Elon did stating "Am considering taking Tesla private at $420. Funding secured": link

Musk has an almost-pathological obsession with burning the people who try to short-sell Tesla's stock. And it might have just circled around to bite him, unless he can actually name where the funding is coming from.

Now that Apple's net worth is over one trillion dollars, they've plenty of cash to burn. Perhaps Apple is the investor standing by with the money to buy Tesla. Apple has been looking at the car biz for a while so this wouldn't be too far fetched.

Then there's this...
Ex-SEC chair: Musk's tweet on taking Tesla private puts him at risk of civil and criminal penalties

"If you make a false statement in connection with the trading of securities, you run the risk of both having to pay for the damages you caused and also you run the risk of a criminal prosecution," Pitt, now CEO of consulting firm Kalorama Partners, told "Squawk Box."

Elon is getting a bit too careless.

originally posted by: amazing
Serious question for those in the know.

What would happen if I have Tesla Stock, I do. But it doesn't vest for another 4 years, fully? And they go private?

Does it get bought out, or does it just disappear and I get nothing? Don't have the documents in front of me and you'll see by they way I phrase my question I don't really understand what I'm talking about. LOl

You should really talk to HR about this. They will probably not have the answers yet, but may have a better idea of what you really have. The answer depends heavily on what type of vesting is being offered. The approach will probably differ if there's a cliff or graduation schedule. My guess is the company will buy out your unvested shares when it goes private, but since you technically only own a conditional pledge for stock and the conditions aren't met, it might not be as lucrative as if you owned vested shares. But you still own the conditional pledge, so they have to try to make you whole and buy out your pledge. If some of your pledged shares are already vested on a schedule, you'd be bought out of those shares like a "normal" holder.