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Elon Musk Says Investors Convinced Him Tesla Should Stay Public (washingtonpost.com)
Weeks after Tesla CEO Elon Musk expressed his intentions to take his company private, on late Friday, he said investors have convinced him that he shouldn't take the company private, so the firm will remain on the public stock markets. From a report: The eccentric and sometimes erratic CEO said in a statement late Friday that he made the decision based on feedback from shareholders, including institutional investors, who said they have internal rules limiting how much they can sink into a private company. Musk met with the electric car and solar panel company's board on Thursday to tell them he wanted to stay public and the board agreed, according to the statement. In a blog post, Mr. Musk shared the rationale behind his decision, to which he arrived after speaking with investors, both large and small, banks and others. He said: Given the feedback I've received, it's apparent that most of Tesla's existing shareholders believe we are better off as a public company. Additionally, a number of institutional shareholders have explained that they have internal compliance issues that limit how much they can invest in a private company. There is also no proven path for most retail investors to own shares if we were private. Although the majority of shareholders I spoke to said they would remain with Tesla if we went private, the sentiment, in a nutshell, was "please don't do this."
I knew the process of going private would be challenging, but it's clear that it would be even more time-consuming and distracting than initially anticipated. This is a problem because we absolutely must stay focused on ramping Model 3 and becoming profitable. We will not achieve our mission of advancing sustainable energy unless we are also financially sustainable. That said, my belief that there is more than enough funding to take Tesla private was reinforced during this process.
I knew the process of going private would be challenging, but it's clear that it would be even more time-consuming and distracting than initially anticipated. This is a problem because we absolutely must stay focused on ramping Model 3 and becoming profitable. We will not achieve our mission of advancing sustainable energy unless we are also financially sustainable. That said, my belief that there is more than enough funding to take Tesla private was reinforced during this process.
You be sure and tell them that down at the police station...
I'm sure the persuasiveness of Cathy Wood of ARK on CNBC today convinced Musk and the board that Tesla is worth $4K a share and should stay public. Even to a six year old it's plain Musk is a conman and fraud.
Funding Secured! $420 per share! Done deal!
Browsing at +1 - no ACs, I ignore their posts. So refreshing!
There is a name for this kind of action — market manipulation.
Get ready to enjoy the show when SEC deal with him.
So, is Musk's way of saying if he tried to take Tesla private the board would've ousted him?
He is being told to let go and he's letting go.
Tesla needs a serious amount of fresh money to overcome losses, stalling demand, talent loss and the incoming high and low cost competition.
The Tony Stark wannabe attention whore isn't the answer, an adult manager is, if Tesla is to have a good chance of a turnaround.
It shedding the crazy buy at any price stock fan club is another.
But the most important will be hiring people who know how to make cars, and hope they can reverse the damage from Team Amateur.
You should have sold at 320. Tesla is a liability even at $4.20. And the free ride is gone, the competition both at the top and at the bottom has come and is better.
Probably, considering the announcement, because the actual announcement is "No buyers, dilution secured."
We'll see how the stock fares over the next few weeks.
Here's to hoping it drops below 300. I've got a buy order in place :)
One thing I love about TSLA is the guaranteed volatility. People freak out about short-term news, and then forget all about it, then freak out about the next thing, then forget about it. You look at a graph of the stock, all of the spikes and plunges, and you have to struggle to remember what exactly it was that the market was freaking out about on any given low and why it didn't matter just weeks later.
As a long, you can always trust that no matter how good the news, the shorts will find some way to spin it as not actually being good news. There will always be another low to for you to buy low, so go ahead and sell high :) This might change after the Q4 report... I really doubt the Q3 report alone will do it, though. They'll just spin the profit as a "one-time thing" and then go back to your regularly scheduled doomsaying.
BTW, you guys should really diversify your arguments. Here's a tool that may help.
The chloride owes the sodium money.
Total bullshit. There was no request from the rescue team for Musk's sub. It was just an ego thing. You are a liar, Rei. Even you will realize your drugged God is nothing but a narcissist conman.
They were already at positive margins in Q2 without any AWD and P (heavy profit margins) in the mix. Now they're 50% of the mix. Deliveries this quarter will be three times what they were in Q2. It's not difficult math. Combine it with the restructuring in Q2 that added costs in Q2 (such as severance) to save money from Q3 onward, the cars stockpiled in Q2 (to avoid hitting the 200k limit) that have been delivered in Q3, and of course the continuing increases in production rate (reduces depreciation and labour per vehicle) and margins (reduced scrap, reduced rework with time**)... again, it's really obvious to see where they're headed.
** It's funny when shorts complain about Tesla's rate of scrap and rework without realizing that they're laying out a solid case for Model 3 having massive margins as the production process continues to get refined over the coming quarters. If they're already having slightly positive margins with such "high" scrap / rework rates, what exactly do you think happens to the margins when scrap / rework rates are low?
The chloride owes the sodium money.