LBO for Tesla
Just today Elon Musk announce the plan for taking Tesla private at the price of USD 420 per share valuing at USD 70 Billion, by doing so it can take the stress off from the Wall Street. What's your take?
Personal view, I see this as a positive sign as Musk is dedicated to bring around the company and grew fruit from the recent Quarterly report. But with so much debt on the company but the company certainly do able to bring stable revenue from Model 3 right from what I see in the paper, without the added pressure from public investor.
No MF PE firm would take a company private with a negative cash flow except for a few oddballs. Perhaps the Saudis. Don't expect to see a KKR or Silverlake (like Dell), if I were to guess.
He said Funding is secured most likely Saudis are the one behind. And investor support is confirmed maybe this is coming fast as well mhm.
agree saudis and pik debt
Can anyone explain how it's legal for him to publish statements like that without it first being disclosed through official PR/EDGAR?
Or is Elon Musk's Twitter listed an official news outlet for company investors? The SEC would eat any OTC/Pink co. that tried something similar...bullshit double standards galore.
A top Wall Street Lawyer said that "There's no way can put out false statement on Twitter and not get into any trouble that is plain and simple violation of existing securities rule" -quoted from Financial Time.
Maybe this say it all future suits hammer coming in 5...4...3.....2.....BAM!
SEC precedent set when Reed Hastings posted about Netflix monthly streaming hours on Facebook.
I think that as long as Elon wasn't blatantly lying when he said "funding secured" then he will be fine. So, he better have Saudi money ready.
According to their PR team Musk's statement regarding "funding secured" and taking TSLA private was discussed among the board over the past 2 weeks and only representative of a handful of board members' opinions on the matter. It's a little strange we didn't see anything in the 10Q about this since they've been discussing this issue for "weeks" (according to the PR statement).
If this is real and happening, then the funding would probably come from the Saudi Sovereign Wealth Fund (as a hedge, albeit a shitty one but still, for their oil bets) and maybe 1 or 2 others. Just my 2cents, the last CEO I saw cry this much about ridicule from the press and short-sellers was Jeff Skilling or maybe Dick Fuld.
Fully agree on the matter, like who has a deeper pocket than Saudi's who was willing to liquidate all Canadian asset even at a lost (Not relevant to the matter, but you get my point). Means that Saudi's is able to take up more cash burning machine in return for their growth.
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