Tesla going Private … ?!?!

 

www.tesla.com

Just recently Mr. Elon Musk made an announcement on Twitter that he wants to take Tesla Private and that he had secured funding to do so.  The announcement created a frenzy as Most tweets do from Elon Musk.  Trading activity spiked and became so volatile that NASDAQ had to put a Hault on $TSLA until the dust cleared.   Now in the spirit of full disclosure I should mention that I am an investor in TESLA and my primary reason for investing in the stock has not been to make astronomical gains (may be a little bit) but more importantly I truly believe in Tesla’s and Elon’s vision for a more sustainable future with the side benefit that we had a unique opportunity to have visibility into the workings of a brand new car company.  A company that at its core was much more so a technology company then a traditional car maker.   So when the news dropped  I definitely had mixed feelings.  On one end I desperately want Tesla to succeed and continue to make fantastic products.  Get away from the constant scrutiny of the short sellers, the constant media attention both good and bad.   But it really sucks to lose that insight that you get inside a publicly held company.  Now nothing is for certain and if TSLA goes private then they will have to limit shares to 2000 and so most of the smaller investors will have to be bought out and its unclear exactly how that process will go.   There are already people getting lawsuits ready against Elon for his tweets and the mechanism by which he chose to go public with this information.   Time will tell how it all plays out and I can only hope that it is inevitably a  good thing for the company but the kicker in all this is, is that the secret investor that Elon is talking about is Saudi Arabia.  Of all countries, the country whose entire economy is based on fossil fuel is going to become a major investor in Tesla.  The irony of the situation has definitely not gone unnoticed.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.