Is Taking Tesla Private A Practical Thing To Do?

Sure - for all the people who would have lost their investments - they will come out with a tidy profit - and only an idiot will lose everything.

72 billion for Tesla, to put that into perspective, the market cap for VW Group is under 76 billion.

That 72 billion is THEORETICAL worth not actual worth. The actual value of the company would be the selling price and people who acquire companies NEVER pay valuation. So much of Tesla's valuation is 100% speculation of what could be.

Wasn’t saying that Tesla is worth the same or more than VW Group. Was just pointing out that Musk stated that he was considering taking the company private offering a buy back of $420 per share. The article states that would be 72 billion. Where he is getting the financing for that 72 billion is the question when the market cap for VW Group is 76 billion. One would think the only ones that would finance that kind of money to a cash burning entity like Tesla would be some type of sovereign wealth fund, Chinese government looking to obtain a direct technology transfer?

If you’re saying that you are considering buying back all shares at $420 per share to take the company private, you going to real money not theoretical. Which is why the SEC is looking into the claim by musk that the financing is already set up.

After reading the article it seems like Elon's ego is getting to him. Why worry about the short sellers if you are confident about what you are doing? Put your head down and plow forward. Ignore them. To do this the way he did is pretty serious, especially without the Board's knowing or approval. It's not his company since he only owns 20%. He had better come forward with the structure of the deal and who is providing the funds ASAP.

Elon's behavior mirrors that of the Trumpinator - the more something gets under his skin, the more he sends out insane public comments about it ("I'm taking Tesla private for $72 Billion.." vs "..my dopey son Don Jr is being treated unfairly because he published the email about "The Meeting"..").

Elon and the Trumpinator might be sharing the same personality.

It won't be $72 billion. Elon & friends won't sell, that is around 50% of stock. Fidelity is going to manage the private fund, so they won't sell--that is a 8.2% stake. Then you have a lot of other institutional and individual investors that likely will hold their stock, either for tax purposes, speculative appreciation while private, or for support of the company mission. Let's say half of the investments fall into this category. That leaves $15 billion or so needed to buy out the remaining shares.

Really wondering where that money will come from, but my guess is from many different funds.

In a sale Tesla would be lucky to get $10B. The minute Tesla goes up for sale, its value will plummet because are the rumors of impending demise will be assumed true. Maybe it will be a Jaguar/Land Rover job at $2.3B.

SJD.The issues for those who stay depends on when they got in and what their liquidity needs are. The original VCs got into a private company but they had to see an exit plan (IPO or sale) to get cash back and show ROI so they can go to customers and raise their next fund. That's their business model. Likewise Fidelity and other investment funds who got in when Tesla was public have to have the ability to liquidate to meet their customer needs. The opportunity to do that is severely restricted in Elon's plan. The promised sale periods are private sales and there is no guarantee there will be buyers during those windows. It will be very complex. Even employees are putting themselves at extra risk under this scheme holding stock in the company. Bet your estimate of those who stay is high and more $ will be needed to buy them out. $ that aren't going into making products.

Yeah, that could be the case. I'm not a fan of the move and am planning to vote No on my shares--but think it will pass. Elon wouldn't make the announcement if he didn't already have the votes needed. Going private reduces liquidity, as well as transparency and accountability. Seems like a step back, although I understand the argument for doing it.

Just announced the SEC is making inquiries into Musk’s statement on taking the company private.