Elon Musk

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tooth

Trad climber
B.C.
Aug 11, 2018 - 10:13pm PT


https://v.qq.com/x/page/j0754tsjcjd.html

Chinese saying they are putting the GF3 into production as fast as possible.

The China 🇨🇳 Shanghai gov also declared that Tesla's 500,000 pure electric vehicles annual production are the largest foreign investment in Shanghai's history. Tesla is also the first 100% sole proprietorship of the foreign-invested company.

On the other hand, several China's largest banks are actively negotiating with the Shanghai gov to provide partial financing support for Tesla's factory in Shanghai. At the same time, Tesla began to publish Shanghai factory recruitment information on major recruitment websites.
August West

Trad climber
Where the wind blows strange
Aug 12, 2018 - 11:46am PT
He reasons that taking Tesla private would relieve that pressure.

“His whole focus on shorts is a misallocation of his time and resources,”

Smells like obstruction to me.
tooth

Trad climber
B.C.
Aug 13, 2018 - 06:16am PT
Sorry to take the wind out of a lot of conspiracy theorists/pessimists' sails...

“The Saudi Kingdom’s Public Investment Fund is working to be part of any investor pool that emerges to take Tesla private, people with knowledge of the fund’s plans told Bloomberg News on Sunday. The fund, which recently built a stake just shy of 5 percent, is exploring how it can be involved, the people said on condition of anonymity.”
Bloomberg
from here....

https://www.tesla.com/blog/update-taking-tesla-private

Update on Taking Tesla Private
Elon Musk August 13, 2018
As I announced last Tuesday, I’m considering taking Tesla private because I believe it could be good for our shareholders, enable Tesla to operate at its best, and advance our mission of accelerating the transition to sustainable energy. As I continue to consider this, I want to answer some of the questions that have been asked since last Tuesday.

What has happened so far?
On August 2nd, I notified the Tesla board that, in my personal capacity, I wanted to take Tesla private at $420 per share. This was a 20% premium over the ~$350 then current share price (which already reflected a ~16% increase in the price since just prior to announcing Q2 earnings on August 1st). My proposal was based on using a structure where any existing shareholder who wished to remain as a shareholder in a private Tesla could do so, with the $420 per share buyout used only for shareholders that preferred that option.

After an initial meeting of the board’s outside directors to discuss my proposal (I did not participate, nor did Kimbal), a full board meeting was held. During that meeting, I told the board about the funding discussions that had taken place (more on that below) and I explained why this could be in Tesla’s long-term interest.

At the end of that meeting, it was agreed that as a next step, I would reach out to some of Tesla’s largest shareholders. Our largest investors have been extremely supportive of Tesla over the years, and understanding whether they had the ability and desire to remain as shareholders in a private Tesla is of critical importance to me. They are the ones who believed in Tesla when no one else did and they are the ones who most believe in our future. I told the board that I would report back after I had these discussions.

Why did I make a public announcement?
The only way I could have meaningful discussions with our largest shareholders was to be completely forthcoming with them about my desire to take the company private. However, it wouldn’t be right to share information about going private with just our largest investors without sharing the same information with all investors at the same time. As a result, it was clear to me that the right thing to do was announce my intentions publicly. To be clear, when I made the public announcement, just as with this blog post and all other discussions I have had on this topic, I am speaking for myself as a potential bidder for Tesla.

Why did I say “funding secured”?
Going back almost two years, the Saudi Arabian sovereign wealth fund has approached me multiple times about taking Tesla private. They first met with me at the beginning of 2017 to express this interest because of the important need to diversify away from oil. They then held several additional meetings with me over the next year to reiterate this interest and to try to move forward with a going private transaction. Obviously, the Saudi sovereign fund has more than enough capital needed to execute on such a transaction.

Recently, after the Saudi fund bought almost 5% of Tesla stock through the public markets, they reached out to ask for another meeting. That meeting took place on July 31st. During the meeting, the Managing Director of the fund expressed regret that I had not moved forward previously on a going private transaction with them, and he strongly expressed his support for funding a going private transaction for Tesla at this time. I understood from him that no other decision makers were needed and that they were eager to proceed.

I left the July 31st meeting with no question that a deal with the Saudi sovereign fund could be closed, and that it was just a matter of getting the process moving. This is why I referred to “funding secured” in the August 7th announcement.

Following the August 7th announcement, I have continued to communicate with the Managing Director of the Saudi fund. He has expressed support for proceeding subject to financial and other due diligence and their internal review process for obtaining approvals. He has also asked for additional details on how the company would be taken private, including any required percentages and any regulatory requirements.

Another critical point to emphasize is that before anyone is asked to decide on going private, full details of the plan will be provided, including the proposed nature and source of the funding to be used. However, it would be premature to do so now. I continue to have discussions with the Saudi fund, and I also am having discussions with a number of other investors, which is something that I always planned to do since I would like for Tesla to continue to have a broad investor base. It is appropriate to complete those discussions before presenting a detailed proposal to an independent board committee.

It is also worth clarifying that most of the capital required for going private would be funded by equity rather than debt, meaning that this would not be like a standard leveraged buyout structure commonly used when companies are taken private. I do not think it would be wise to burden Tesla with significantly increased debt.

Therefore, reports that more than $70B would be needed to take Tesla private dramatically overstate the actual capital raise needed. The $420 buyout price would only be used for Tesla shareholders who do not remain with our company if it is private. My best estimate right now is that approximately two-thirds of shares owned by all current investors would roll over into a private Tesla.

What are the next steps?
As mentioned earlier, I made the announcement last Tuesday because I felt it was the right and fair thing to do so that all investors had the same information at the same time. I will now continue to talk with investors, and I have engaged advisors to investigate a range of potential structures and options. Among other things, this will allow me to obtain a more precise understanding of how many of Tesla’s existing public shareholders would remain shareholders if we became private.

If and when a final proposal is presented, an appropriate evaluation process will be undertaken by a special committee of Tesla’s board, which I understand is already in the process of being set up, together with the legal counsel it has selected. If the board process results in an approved plan, any required regulatory approvals will need to be obtained and the plan will be presented to Tesla shareholders for a vote.











What is the sound that Saudi crickets make?

Whatever $2.7B landing on the table sounds like.


I'll just leave this here...




Replying to Reily -
Yeah. From my point of view, with really nothing but the media to enlighten me, Elon should be in jail! (I hope I don't look like a fool tomorrow when we all find out what he knows)

Wait, we found out today that SA invested billions many weeks ago, but are blind to the fact that that could happen again. The teaser, taster, went well, now someone is ready to go all-in. It's not impossible, improbable, or unprecedented. Why did we have our panties in a bunch again? Any number of companies like Apple have enough cash sitting around to make this happen. Elon doesn't, all his is tied up in his 20% share of Tesla stock. Not sure why your mind would have gone there first.
Toker Villain

Big Wall climber
Toquerville, Utah
Aug 13, 2018 - 09:07am PT
OK



crazy like a fox.
August West

Trad climber
Where the wind blows strange
Aug 13, 2018 - 09:19am PT
I take it with a grain of salt because Musk has to cover his ass now that the SEC is investigating him.

But if the Saudis are willing to pony up big bucks both to take the company private and to provide funding at a lower interest rate, it would certainly brighten Tesla prospects.

If that happens, will be interesting to see if they would put up that much money while leaving Musk a free to do as he pleases.
Reilly

Mountain climber
The Other Monrovia- CA
Aug 13, 2018 - 09:23am PT
What is the sound that Saudi crickets make?
Malemute

Ice climber
great white north
Aug 13, 2018 - 09:28am PT
(a) the saudis are "buying" tesla to kill it

or

(b) the saudis see that gas autos are the past and electric vehicles are the future
MikeL

Social climber
Southern Arizona
Aug 13, 2018 - 09:29am PT
Going private will make those things “inside the kimono” unavailable to the public scrutiny. It’s a way from having to respond to short-term demands from a wider base of shareholders (who are invariably far more concerned with short-term performance).
August West

Trad climber
Where the wind blows strange
Aug 13, 2018 - 01:56pm PT
I think it is to get away from the nattering nabobs of negativity otherwise known as short sellers.
August West

Trad climber
Where the wind blows strange
Aug 13, 2018 - 01:59pm PT
What is the sound that Saudi crickets make?
The sound of one wing chirping.
Toker Villain

Big Wall climber
Toquerville, Utah
Aug 14, 2018 - 08:49am PT
So he had a twitchy twitter finger but we now have the Elon-gated explanation.

SEC will have a tough time holding his feet to the fire.

When someone is described as; visionary, ethereal, eccentric, that it is actually code for mental instability.



Wait,.. who are we talking about again?
;)
Reilly

Mountain climber
The Other Monrovia- CA
Aug 14, 2018 - 09:02am PT
Martha Stewart was visionary, ethereal, and even a little eccentric in the eyes of her fans yet the SEC had no qualms making an example of her. I also have no doubt she was a lot more pleasant to hang out with. She apparently was very generous with her time to some troubled women.
Toker Villain

Big Wall climber
Toquerville, Utah
Aug 14, 2018 - 09:20am PT
Martha Stewart did more than say something she knew would piss off people she didn't like.

She profited from inside info.


But I'm sure she redeemed herself making potholders in Danbury.
couchmaster

climber
Aug 14, 2018 - 06:01pm PT
Martha Stewart did not go to jail for insider trading.



10b4me

Social climber
Lida Junction
Aug 14, 2018 - 09:23pm PT
I think tooth is worried about the cavity that is tesla.
Reilly

Mountain climber
The Other Monrovia- CA
Aug 15, 2018 - 06:44am PT
$320 is looking more likely than $420.
The shorts are looking smarter.
MikeL

Social climber
Southern Arizona
Aug 15, 2018 - 08:06am PT
Toker Villain: When someone is described as; visionary, ethereal, eccentric, that it is actually code for mental instability.

Perhaps. Genius is often “way out there.” Why might that be? Typical understanding of reality is invariably traditional. The only way to create / innovate new things (views, products, methods) is to get off the beaten track. Most often that looks imprudent, a little crazy.

I’m not so sure it’s about mental instability. The effect of genius often means instability, but that refers to social and economic systems. Joseph Schumpeter (an Austrian economist in the 1880s) called it, “creative destruction.” Almost everyone in Silicon Valley wants to create new market spaces around their ideas (which could put them in the catbird’s seat).

Check out wiki on Schumpeter; it’s a good write-up and may inform you of some of the remarkable understanding he seemed to have had. Very prescient.
Reilly

Mountain climber
The Other Monrovia- CA
Aug 15, 2018 - 10:16am PT
The SEC, despite Tooth’s insider info, has already issued subpoenas.
Toker Villain

Big Wall climber
Toquerville, Utah
Aug 15, 2018 - 10:28am PT
I'm buying popcorn.
August West

Trad climber
Where the wind blows strange
Aug 15, 2018 - 12:17pm PT
The only way to create / innovate new things (views, products, methods) is to get off the beaten track.

Ok. I keep hearing this about Musk. And I keep asking, on this forum and another one that I browse, what has Musk done (since perhaps Paypal) that is innovative. And I never get an answer besides some hand waving visionary thing.

He wasn't the first private space company. He wasn't the first all-electric car. He wasn't the first to use robots in manufacturing.

As far as I know, he was the first to bring an all-electric, sports car to market. Credit for that. Although given the amount of torque that electric motors can generate, that strikes me as fairly obvious.

And then he has a bunch of adolescent fantasies (that aren't original) about Martian colonies and hyper loops.

As far as I can tell, visionary is another name for a charismatic salesman that knows how to create a fanatical following with a chic brand.

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