TSLA what a joke

Discussion in 'Stocks' started by John9999, Aug 7, 2018.

  1. newwurldmn

    newwurldmn

    But then he has to find an equity investor or a debt investor willing to take them out. My point is that it's not a 20bn transaction. It IS a 60bn transaction. Impossible to do with a company that's hemmoraging money in my opinion.
     
    #71     Aug 9, 2018
  2. Daal

    Daal

    T Row Price has a private equity arm, there are probably other holders that can hold private stakes too. Musk tweeted "Investor support is confirmed", he did that for a reason
     
    #72     Aug 9, 2018
  3. Daal

    Daal

    here is an ok article talking about the funding needs
    https://seekingalpha.com/article/4197043-tesla-much-cash-realistically-secure
    "At a minimum, 16% of the $70B ($11B) needs to be secured to buy out the general public (non-institutional investors). At a maximum, we will assume that insiders will remain as private company shareholders, and the remaining 80% of the $70B ($56B) needs to be secured for all the other shareholders."

    He then arrives at a more realistic figure of $30B assuming some institutions roll over into private stakes (like T Row Price). $30B is just 12% of the AUM of the Saudi fund that announced their stake and only 4% of the entire wealth managed by Saudi Arabia (and Musk might have more ultra wealthy contacts). So the short case depends on Musk believers not voting for what their master wants and what a few lunatics in Saudi Arabia decide, I wouldn't want to be in that bet
     
    #73     Aug 9, 2018
  4. destriero

    destriero

    Yeah, I told her to lease the 2018 P100D, but she won't lease. It's a CPO 2015 85D.
     
    #74     Aug 9, 2018
  5. Sig

    Sig

    A funny aside that we're talking about the Saudi sovereign wealth fund investing in something whose major impact will be to reduce the main export of Saudi Arabia's main product (most oil is used in transportation, only .5% of U.S. electricity comes from oil fired plants). If they do make a 12% of the fund size bet, it says something significant far beyond Tesla.
     
    #75     Aug 9, 2018
  6. newwurldmn

    newwurldmn

    No sovereign wealth fund will bet 12percent of their AUM on one speculative technology company.
     
    #76     Aug 9, 2018
    schweiz likes this.
  7. Daal

    Daal

    Perhaps, but what about 8%? or 6%? They also got Tencent as a shareholder, they got over $100B in cash. Who knows who else Musk got in his rolodex. Point is, this doesnt look as unlikely as the news media is making it out to be. He did say he had investor support and financing was secured, looks like he already had the meetings and made the phone calls
     
    #77     Aug 9, 2018
  8. LOL. You might want to consider reverting back to your original take on TSLA. Whoever made that outlandish conjecture probably has zero understanding or exposure in legal matters, civil and criminal.
     
    #78     Aug 9, 2018
  9. Pekelo

    Pekelo

    He also said there will be battery changing stations and they will make 5K/week by last year's end. What he says usually doesn't mean anything.

    Yeah, so that's the thing....
     
    #79     Aug 9, 2018
  10. Daal

    Daal

    True but common sense says that he will be more careful when talking about matters that can land him in jail. Sure, he could be being reckless but in my view 9 times out of 10, people as rich as him wouldn`t make that mistake. Especially given that he only tweeted after the Saudis reported their stake, thats the tell the whole thing is legit. IMO
     
    #80     Aug 9, 2018