Stock Showdown of the Century -- short sellers vs Musk:

Discussion in 'General' started by Carcus, Aug 9, 2018.

  1. Carcus

    Carcus Well-Known Member

    “Clearly we all believe there’s an extremely low probability he can get that deal done,” he said. “He can’t do it with debt, the financials are too horrible. So it’d have to be equity, and there’s not enough stupid money to buy this company at an $80bn valuation.”

    https://www.ft.com/content/829f5802-9b62-11e8-9702-5946bae86e6d

    This is history in the making right here, ... so come on cleanmpg'ers .... opinions?
     
    Last edited: Aug 9, 2018
  2. EdwinTheMagnificent

    EdwinTheMagnificent Legend In His Mind

    I like Elon , but I think this was an extremely bonehead move. He's opening himself to lawsuits
    and public embarrassment. I'm not a stockholder , but I admire the man and love the cars.
    I hope he can survive this.
     
  3. PaleMelanesian

    PaleMelanesian Beat the System Staff Member

    Edwin's right. This was not smart to put out publicly. Especially stating an actual price.

    That said, the shares I own are loving it.
     
  4. Carcus

    Carcus Well-Known Member

    From the dark side ..:

    "Elon Musk is a brilliant entrepreneur and visionary, but the Tesla CEO’s vague proposal to take Tesla private at $420 a share is a sham.

    The electric car company is struggling to service more than $10 billion of debt and make forecasted capital investments. Tesla TSLA, -1.00% is not likely to have anywhere near the free cash flow needed to support another $24 billion in debt to buy out even one-third of its current shareholders."
    https://www.marketwatch.com/story/elon-musks-plan-to-take-tesla-private-is-a-pipe-dream-2018-08-13

    /IF (and I said "if") this is a ploy to prop the stock price up, ... the stories/arguments could go on for years, .. and we may never really find out what "funding secured" actually meant (or didn't mean).
     
  5. PaleMelanesian

    PaleMelanesian Beat the System Staff Member

    Eh. And the gains are gone, back to where it was the week before.
     

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