This is actually negative news, because they kind of acknowledged that Elon lied and they are trying to clean up the mess. Before the open price is back to where it closed.
Yeah, I know it's CNBC: https://www.cnbc.com/2018/08/11/sau...interest-in-teslas-idea-of-going-private.html
A good TSLA piece by Levine on bloomberg. Its fairer then usual and presents both sides of the story https://www.bloomberg.com/view/articles/2018-08-08/elon-musk-has-some-fun-with-tesla I happen to think the take private transaction is legit and funding is avaliable for the reason he outlines bellow "Would big investors be interested in buying equity in a private Tesla? Traditionally you’d say that the people able to write big private-equity checks would not be interested in an unlevered buyout of a public company; investors willing to take the risk and illiquidity of private equity investments want the high returns that come from either early-stage venture investing or from leveraged buyouts. But the recent years of unicorn mega-funding have changed that expectation. Uber, for instance, is a $50+ billion company that is constantly peeling off billion-dollar financing rounds. The market for unlevered equity stakes of mature private companies with 11-digit valuations is actually quite robust. If Musk announced today that his financing sources have committed $60 billion of equity I would be, yes, surprised, absolutely, but it would also, in this weird world we live in, make a kind of sense." This situation is about the demand for TSLA shares, not about TSLA fundamentals. And looking around the world, the amount of pools of capital with dozens or hundreds of billions of dollars (Its a 10y bull market) it seems clear to me that there will be plenty of people looking to buy a stake or roll over their existing stakes. The price tag will be more like $30B and with the global pool of capital looking for tech investments being measured in the hundreds of billions, it doesnt seem crazy to think that this will go through
Here is what happened. One month into Q3 they realized that they are still losing money and the profitable quarter isn't going to happen. The ramped up logistic of the 4K/week production got also messed up, and cars ended up here and there not to mention a big% undeliverable due to bad quality production. They are simply just not organized enough to actually deliver 5K+ cars weekly. The over produced pipeline isn't clearing... In short, a nice clusterfuck and Elon had to pull a new trick and going private would provide him secrecy and a new cashflow even if just temporary. But he also miscalculated the amount they actually need for the LBO. It is possible one guy gave him a word, they would throw in 8-10 billion, but a verbal OK isn't enough to file a 8K. The ship is sinking, so yeah, that is the thing...
"Isn’t it ironic that the two big wealth funds that bulls are praying for to bail Tesla out have one thing in common? (Saudis, Norwegians) They are both the embodiment of “Big Oil”. And yet when the curtain is closing on the Tesla cult, the cultist will be fine with being saved by Big Oil."
Guess who joined the suers? https://www.hbsslaw.com/cases/tsla/...a-and-elon-musk-for-false-market-moving-tweet The same Hagens Berman Sobol Shapiro which has successfully sued Bernie Madoff, Enron, Big Tobacco (for hiding the cancer studies), Volkswagen (CO2 defeat devices) and dozens of other landmark cases.