Tesla Not going private

Shogun

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#6
I supported Tesla going private but wasn't keen on the Saudi Fund owning a much larger chunk of it. I don't buy the "hedge against the long-term decline of oil" bit they are selling. Reminds me of big pharmaceutical companies buying their competition just to keep the competing products off the shelf. It's a great business strategy, but not so great for the end consumer.
 

garsh

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#10
And now the shorts are saying the timing of the announcement is unfair. It’s always something :(
Link?

I mean, they're going to sue Elon for his "going private" tweet regardless. I guess a Friday night announcement means that the stock price doesn't immediately fall like a rock. I still hope it falls Monday - I want to pick up some more at a big discount. :)
 

SoFlaModel3

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#11
Link?

I mean, they're going to sue Elon for his "going private" tweet regardless. I guess a Friday night announcement means that the stock price doesn't immediately fall like a rock. I still hope it falls Monday - I want to pick up some more at a big discount. :)
Saw FUD on Twitter and should have saved a link. I’ll try to find it again.
 

jmmdownhil

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#12
Looks like a good decision given all the issues going private, plus the potential distraction from production ramp and delivery problems.
Now Elon can focus(?) on internal issues.
 

Guy Weathersby

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#13
I hope that this has been a useful exercise. Evidently the investors made clear that they are into Tesla in the long run, and do not care about quarterly results, stock volatility, or analysts. Public or private, just execute the long term plan, make us all rich, and make the Earth a better place.
 

John

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#14
I just hope that his frantic factory work (which he himself has compared to the times when both SpaceX and Tesla might fail) and his rash go-private plan weren't a panic over impending financial difficulties that he'd prefer not to be public.

For instance, if it turns out that they've worked through most/all of the customers that want a >$50K LR+PUP car. (The shorts claim they are piling up in parking lots.) It looks like production is going pretty well, but we don't have figures for sales.

And there has been a push to promote Performance models. It's obviously the right thing to do, profit-wise, but then again there are a lot of things like that that Tesla should have been doing in the past and has not. If anything it hints of a shift from production constrained to demand constrained.

To balance this, Elon and Deepak have very clearly said on the last two earnings calls that cash and future margins looked good. It was more Elon pushing, and Deepak agreeing, but still: they said it quite clearly. But it all hinges on order rates.

But then again, in one of his recent tweets, Elon said "In talking to our public investors, most were supportive of optimizing for long-term value creation over quarterly earnings. This was also a factor in remaining public." Does that mean earnings are poised to disappoint, or is that cynical reading?

Does it simply mean he needs to raise capital to build new factories and launch new products, and must therefore get back on the breakeven/losses train for a while? And if so, will the market allow another few years of no profits?

But on the other hand, the car is getting rave reviews. And many people are just now learning about it for the first time (they don't hang around EV forums).

Own a good chunk of stock. Gritting my teeth for Monday. Staying in, but worrying.
 

garsh

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#15
Does it simply mean he needs to raise capital to build new factories and launch new products, and must therefore get back on the breakeven/losses train for a while? And if so, will the market allow another few years of no profits?
Bingo.

Model 3 profits just aren't enough to allow all of their growth plans on a quick enough timeline. They'd either need to severely slow down their growth to match income, or borrow money. And borrowing money has been very, very difficult with the institutional short sellers convincing the people who could loan Tesla money that Tesla is too high of a risk.
 

@gravityrydr

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#16
I supported Tesla going private but wasn't keen on the Saudi Fund owning a much larger chunk of it. I don't buy the "hedge against the long-term decline of oil" bit they are selling. Reminds me of big pharmaceutical companies buying their competition just to keep the competing products off the shelf. It's a great business strategy, but not so great for the end consumer.
With all, that's going on with the Saudi's right now I'm quite happy that the Saudi Sovereign wealth fund will not have a larger stake in Tesla.
 
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