A Deal With The Devil? Volkswagen Attempted To Invest In Tesla

Tesla’s (TSLA) stock price dropped as much as 5% in pre-market trading after CEO Elon Musk announced that he is letting go the idea of taking Tesla private.

We now learn that he thought he was “now or never” because he sees Tesla surging on Wall Street in the coming months and Volkswagen reportedly tried to invest Tesla.

According to sources involved in the take-private deal who talked to the Wall Street Journal, banks and advisors put a deal together that involved Volkswagen and Silver Lake:

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carloslassiter - 8/27/2018 11:19:40 AM

+1 Boost

Hilarious. And the guys in here insist VW/Audi/Porsche will destroy Tesla at the same time they are hoisting the white flag and trying to join them.

mre30 - 8/27/2018 11:53:51 AM

+3 Boost

Really? Hilarious? Please read the WSJ article - he rants like a lunatic and he has basically rejected ANY exit strategy that most sane-minded investors would assume for the stock:

(a) Let the Saudi's buy it? No, because they are funded by 'petro-dollars' and might just kill Tesla to preserve the IC monopoly and/or stave-off EV advances

(b) Let VW buy it? No, because its a competitor who would likely just 'steal' Tesla's (non-proprietary!) technology and let Tesla wither on the vine.

Ok - SO WHO THE F**K ELSE IS GOING TO BUY TESLA AND ALLOW INVESTORS TO EXIT AT A GOOD VALUATION? SEEMINGLY NO F**KING ONE ! TESLA AND MUSK APPARENTLY WON'T SELL IT OUT TO ANYONE !! WHAT IS THE EXIT STRATEGY?

Musk needs to really stop talking via Twitter/social media and stick to the quarterly conference calls.

There is a reason that many public companies are criticized as being "secretive" and non-transparent - it keeps them out of trouble!

This is really bad. The Tesla Board is going to have some challenging decisions to make. I give Musk 90 days or less in the job.

Investors didn't buy Tesla stock because they shared the dream of EV'ing America. They bought Tesla stock to make money and Musk's recent actions are not really helping things along on that front.

Vette71 - 8/27/2018 1:08:58 PM

+1 Boost

Per their settlement with the Feds VW has to invest in the USA electric car market. Witness the "electric cars are the future" ads they are running on TV. The ad features a Chevy Bolt in plain sight. The investment could have been another way to keep the Government Greens off their back.

MDarringer - 8/27/2018 6:58:37 PM

-2 Boost

Too bad VW couldn't buy Tesla and close them down.

MrEE - 8/28/2018 8:35:18 PM

+1 Boost

VW needs to figure out how to get to even second or third in EVs, and buying in would greatly help.