Tesla's Board Seeking More Information on Musk's Financing Plan

Discussion in '[H]ard|OCP Front Page News' started by Montu, Aug 10, 2018 at 11:29 AM.

  1. Montu

    Montu [H]ard DCOTM x4

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    It's been all over the financial news regarding Elon Musk's recent tweet about taking Tesla private at $420 a share and now his own board may ask him to put up or shut up. This move follows reports that the SEC is looking into his tweets. Personally, I believe taking the company private might do for Tesla what being privately held is doing for SpaceX. However, he has to get his act together and make sure he doesn't get into trouble with the SEC. This one is going to get interesting.

    Taking Tesla private would remove the pressure from Musk coming from hedge funds betting that the company’s stock will drop given its production issues and negative cash flow, as well as the glare of Wall Street that comes with reporting quarterly earnings publicly.
     
    Wierdo likes this.
  2. RealBeast

    RealBeast Limp Gawd

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    Should work as well as the Solar City buyout, other than losing money at an exponentially higher rate. SpaceX has government contracts, Tesla only limited "incentives." o_O
     
  3. HeadRusch

    HeadRusch Gawd

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    You can't take down Hank Scorpio, don't even try it.
     
  4. Wierdo

    Wierdo [H]ard|Gawd

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    Short-term thinking would suggest so, but this is the long game, something China's good at. Us down here? Not so much anymore, hence WallStreet and its "quarterly" culture.

    Which, again, brings us back to why long-term minded startups should try to stay private until they're established, the growth slows down and it's time to just sit down and collect the steady revenue until the next startup comes along to disrupt.

    The solar/battery/EV synergy is obvious, the challenge is when all the pieces fall in place, that's a matter of time and hard work.
     
    Last edited: Aug 13, 2018 at 12:10 PM
  5. jpm100

    jpm100 [H]ardness Supreme

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    There's probably $25,000- $50,000 in fuel economy credits per Tesla they can sell to gas automaker to get relief on government regulations. When Trump made automotive emissions standards great again, he may have killed the market for those. Tesla could not survive without them.