Jump to content
Create New...
  • William Maley
    William Maley

    Elon Musk Proposes Taking Tesla Private

      Argues that it will allow the automaker to focus on the long run

    Yesterday afternoon, Tesla CEO Elon Musk tweeted this

    This sent everyone into a tizzy, wondering if he was being serious or not. In fact, NASDAQ had to halt trading of Tesla for a couple of hours because of this tweet. Thankfully, Tesla posted an email that was sent by Musk to employees explaining why. The key reason comes down wanting to minimize distractions and begin focusing on the long term.

    "But the reason for doing this is all about creating the environment for Tesla to operate best. As a public company, we are subject to wild swings in our stock price that can be a major distraction for everyone working at Tesla, all of whom are shareholders. Being public also subjects us to the quarterly earnings cycle that puts enormous pressure on Tesla to make decisions that may be right for a given quarter, but not necessarily right for the long-term," Musk wrote in the email.

    Musk also made light of the short sellers who bet against Tesla succeeding, saying the company was the most shorted stock "in the history of the stock market". By going private, it gives the company some protection.

    How would this changeover to private work? Musk said he would like to offer shareholders to either remain or sell their shares at $420 per share (a bit higher than the $375.16 share price at the time of this writing). He would also like Tesla's employees to remain as shareholders.

    "Basically, I'm trying to accomplish an outcome where Tesla can operate at its best, free from as much distraction and short-term thinking as possible, and where there is as little change for all of our investors, including all of our employees, as possible," the email states.

    This move will need to be approved by Tesla's board of directors. In a statement released this morning, several members of the board published a statement that echoes the reasons given by Musk. It also reveals that this idea had been on Musk's mind for sometime.

    "Last week, Elon opened a discussion with the board about taking the company private. This included discussion as to how being private could better serve Tesla's long-term interests, and also addressed the funding for this to occur. The board has met several times over the last week and is taking the appropriate next steps to evaluate this," the statement says.

    One of those "appropriate next steps" is getting enough money to do the buybacks. Musk in his tweet said he has funding for it, but it is unclear who and how much is being provided. According to MarketWatch, the buyout would total $72 billion if all of the shareholders decide to sell.

    Source: Tesla, MarketWatch

    Edited by William Maley

    User Feedback

    Recommended Comments

    I have to wonder how much of his Tweeting clashes with the SEC and FTC rules? ?

    Gotta think that this is part of his attack to hurt Short Sellars. Currently it looks like according to other news stories cost short sellars up to $13 billion dollars. Crazy times we live in.  :nono:

    Link to comment
    Share on other sites

    Maybe, but it would actually solve the real issue: distractions.  Wall Street ALWAYS wants its needs served first, last and always.  The best thing is to NOT go public unless you (i.e. the CEO) are willing to deal with all the demands of sell-side and buy-side analysts and hedge funds and the like.  Tesla does not NEED to be a public company.  Wall Street does.

    • Thanks 1
    • Haha 1
    Link to comment
    Share on other sites

    Maybe he will do it, I don't know how much more money he has to increase his ownership stake, but I am sure he can also find some other firm to buy uptake shares and Elon can take even greater control doing what ever he wants.  

    One day Elon will hide 5 Golden Tickets in Tesla cars to be sold over a 3 month period, and those 5 individuals will get a factory tour and tour of Elon's office, in which one of those five will inherit his fortune at the end.

    • Like 1
    • Haha 1
    Link to comment
    Share on other sites



    Join the conversation

    You can post now and register later. If you have an account, sign in now to post with your account.
    Note: Your post will require moderator approval before it will be visible.

    Guest
    Add a comment...

    ×   Pasted as rich text.   Paste as plain text instead

      Only 75 emoji are allowed.

    ×   Your link has been automatically embedded.   Display as a link instead

    ×   Your previous content has been restored.   Clear editor

    ×   You cannot paste images directly. Upload or insert images from URL.


  • google-news-icon.png



  • google-news-icon.png

  • Subscribe to Cheers & Gears

    Cheers and Gears Logo

    Since 2001 we've brought you real content and honest opinions, not AI-generated stuff with no feeling or opinions influenced by the manufacturers.

    Please consider subscribing. Subscriptions can be as little as $1.75 a month, and a paid subscription drops most ads.*
     

    You can view subscription options here.

    *a very limited number of ads contain special coupon deals for our members and will show

  • Similar Content

  • Posts

    • Hyundai has announced a 21 billion dollar investment in the U.S. from 2025 to 2028 improving its production to 1.2 million ICE/EVs per year for Kia/Hyundai/Genesis products. https://www.hyundainews.com/en-us/releases/4404 Hyundai Motor Group Commits to U.S. Growth with USD 21 Billion Investment   The Group to invest a total of USD 21 billion in the U.S. from 2025 to 2028 USD 9 billion to expand U.S. automobile production to 1.2 million units annually USD 6 billion to enhance parts, logistics and steel business, increasing the localization of auto parts and strengthening supply chains USD 6 billion to expand future industries and strengthen external partnerships and energy infrastructure, including EV charging Investment is expected to create more than 100,000 direct and indirect job opportunities by 2028, including 14,000 direct full-time jobs SEOUL, March 24, 2025 – Hyundai Motor Group (the Group) is announcing a significant investment of USD 21 billion in the United States from 2025 to 2028. This commitment reflects the Group’s strategic focus on expanding its manufacturing capabilities, advancing future technologies, and enhancing energy infrastructure in America. This latest U.S. investment builds on the Group’s existing allocation of approximately USD 20.5 billion since entering the U.S. market in 1986. “Hyundai Motor Group is deepening its partnership with the United States, reinforcing our shared vision for American industrial leadership. The Group’s investment and efforts will further expand our operations in the U.S. and grow our American workforce. Thank you to our American partners, employees, and communities. We’re proud to stand with you, and proud to build the future together.” Expanding automotive production capacity To reinforce its production capabilities, the Group will invest a total of USD 9 billion to establish an annual production capacity in the U.S. of 1.2 million vehicles across its automotive brands, Hyundai Motor, Kia, and Genesis. In addition, the Group plans to invest in improving its production facilities, including Hyundai Motor Manufacturing Alabama and Kia Autoland Georgia, to further enhance its customer-centric approach in delivering high-quality automobiles. Enhancing parts localization and logistics to strengthen supply chain A total of USD 6 billion will be allocated to increase the localization rate of automotive components – including core parts for electric vehicles (EVs), such as battery packs – to form an auto cluster following expansion of the Group’s production facilities, as well as strengthening Group logistics to ensure robust supply chains and investing in steel production in the U.S. Hyundai Steel, the Group’s steel affiliate, will construct an Electric Arc Furnace (EAF) steel mill in the state of Louisiana, capable of producing 2.7 million tons of steel annually. This facility will produce low-carbon steel sheets using the abundant supply of steel scrap in the U.S. with the aim of enhancing the Group’s agility and flexibility in response to external uncertainties. Strengthening collaboration in future industries and investing in energy infrastructure The Group will invest USD 6 billion to drive innovation and expand strategic partnerships with U.S. companies in areas including autonomous driving, robotics, artificial intelligence (AI), and advanced air mobility (AAM). Key initiatives include: Collaborating with Boston Dynamics to expand the U.S. ecosystem for robotics components and establish a mass-production system Partnering with NVIDIA to accelerate the development of AI solutions for future mobility, including autonomous driving and robotics Advancing R&D with Supernal, the Group’s US affiliate for AAM business, to commercialize an eVTOL vehicle by 2028 Supplying robotaxis to Waymo as part of its strategic partnership with Hyundai Motor Company, and co-developing autonomous driving services with Aptiv Investing potential startups through venture capital and other funding mechanisms to support U.S. startups specializing in mobility, robotics, and AI As part of its USD 6 billion commitment, the Group will also invest in energy infrastructure projects to secure new business opportunities and contribute to the development of sustainable energy generation, including: Strategic cooperation between Hyundai Engineering & Construction Holtec International on Small Modular Reactor (SMR) technology Establishing infrastructure to bolster use of renewable energy Investing in IONNA EV charging alliance to expand infrastructure Through these investments, the Group anticipates it will create 14,000 new direct full-time jobs in the U.S. by 2028. The overall economic impact is expected to generate more than 100,000 direct and indirect job opportunities across related industries. The Group plans to hold its Hyundai Motor Group Metaplant America Grand Opening celebration in Georgia, U.S., later this week, marking the completion of the largest economic development project in Georgia’s history, just two and a half years after breaking ground. HMGMA exemplifies HMG’s dedication to driving economic growth, furthering technological advancements, and delivering sustainable solutions to the U.S. market, creating or supporting over 570,000 jobs nationwide.
    • Was searching for an oil filter for my motorcycle and checking the fitment list, it also fits the BMW i3. Both of these share parts.
    • I must be in the minority, but Taco Bell never had this effect on me. I can just eat it.
    • https://www.mayoclinic.org/healthy-lifestyle/consumer-health/expert-answers/colon-cleansing/faq-20058435 I had to look this up.  Got it.  What you do before medical procedures.  Not recommended at other times. Otherwise, lots of water and good fruits and vegetables (berries, citrus, different beans, cabbage, spinach, etc.) - - - - - Someone likes their Taco Bell at $1.99 instead of $4.99! https://www.tmz.com/watch/0-c6cbtqbv/ If I didn't know otherwise and saw her, I'd think she'd be the classic Orange County (CA) "Karen:"  "I need to speak to the manager!"
    • Yes.  My company is about 50% remote in the US and 50% in Plano.  They just acquired a small company in NYC.  They are building a GCC in Mumbai, so it will be interesting how much future work goes offshore.  
  • Who's Online (See full list)

    • There are no registered users currently online
  • My Clubs

×
×
  • Create New...

Hey there, we noticed you're using an ad-blocker. We're a small site that is supported by ads or subscriptions. We rely on these to pay for server costs and vehicle reviews.  Please consider whitelisting us in your ad-blocker, or if you really like what you see, you can pick up one of our subscriptions for just $1.75 a month or $15 a year. It may not seem like a lot, but it goes a long way to help support real, honest content, that isn't generated by an AI bot.

See you out there.

Drew
Editor-in-Chief

Write what you are looking for and press enter or click the search icon to begin your search