Musk blackmailing Tesla's board

Discussion in 'Wall St. News' started by Pekelo, Jan 18, 2024.

  1. Pekelo

    Pekelo

    https://arstechnica.com/cars/2024/0...matum-another-12-of-shares-or-no-ai-robotics/

    Give me more shares* or dea... I mean I won't give you any of my stupid ideas!

    *the 12% he is asking for is worth 80B, but what is that between friends and family?

    WillTheGreat (interesting opinion from reddit):

    'It's not to devalue, it's a way out for Elon and to control the narrative. There's no way he can dump his shares at this point without it unraveling so his 12.5% stake doesn't mean anything anymore. It's a way to create a narrative. If the stock drops it's because the board fucked up by not paying Elon, not that the company isn't on an unsustainable path because it's failing to meet expectation it's promised as a tech company.

    Elon either gets to double his stake by TSLA drops 50% and come closer in line with valuations within its industry, or the stock plunges anyways and Elon has a clear out, while the board takes the heat for it's failures to meet expectations as a tech company. This allows him to preserve his "creative genius" to funnel more money in his other ventures."
     
    Last edited: Jan 18, 2024
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  2. Specterx

    Specterx

    Say what you will about Elon, but he's created more shareholder value in a shorter time span than any entrepreneur in history.
     
    taojaxx, athlonmank8, VicBee and 2 others like this.
  3. 16,739% in 11 or 12 years isnt bad.

    970% the last 5 years.

    Some Elite Traders say TSLA is in a bear market though.:confused:
     
  4. Pekelo

    Pekelo

    I forgot to mention he is a good father and excellent bowler. All irrelevant to the current news.

    But do tell, if you were a board member, would you give him that extra 80B? And where those shares would come from? Dilution?
     
    d08 likes this.
  5. How stupid would shareholders have to be to not see this narrative? So why would the heat be on the board? The heat always falls on the ceo.
     
    Last edited: Jan 18, 2024
  6. Rams Fan

    Rams Fan

    Tesla is this decade's Bre-X.
     
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  7. SunTrader

    SunTrader

    6 months ago almost to the day (7/19/23) price was $299.29 (high for the year) today currently it is $210.80

    You tell me what kind of phase does that signal, bull or bear?

    And let's not talk about alltime high and where price is currently compared to that. All the while SPX and Nasdaq near their alltime highs. Just think when a correction sets for the major indices what that does to laggards.
     
  8. Wasn't it split a couple times? What's the split adjusted price? Oh I see the split happened more than 6 months ago.
     
  9. LOL! Hardly anybody will get this reference. :)
     
    wxytrader and Rams Fan like this.
  10. Pekelo

    Pekelo

    Because they are there to control the CEO if he is too bad for share holders' value. But they didn't do it in the Solar City buy out, because this is not an independent board, I think at least 2 of them are relatives.

    Now this time it is different (from the SC example) because Musk's claim is just outrageous. First he has no new ideas to profit from, second what he demands is unheard of. So if the board let him get away with it by issuing more shares, the share holders could sue the board because they didn't act in their best interest. (actually there was a lawsuit based on the SC bailout too, but they came up with some bullshit excuse) That lawsuit was eventually dismissed.
     
    #10     Jan 18, 2024