WHAT HAPPENS TO TESLA DEVOTEES IF MUSK TAKES THE COMPANY PRIVATE?

dailycaller.com | 8/10/2018 | Staff
moemajor (Posted by) Level 3
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What Happens To Tesla Devotees If Musk Takes The Company Private?

Taking Tesla private could destroy Musk’s ability to produce the Model 3

Tesla - Catastrophe - Regulators - Company - Musk

Tesla faces catastrophe if regulators find out the company and Musk are misleading shareholders

Tech entrepreneur Elon Musk’s suggestion to take Tesla private brings with it a significant level of risk for shareholders and activists who are often described as fanatical devotees of the automaker.

Musk - Bomb - Twitter - Tuesday - Willingness

Musk dropped a proverbial bomb on Twitter Tuesday when he tweeted out his willingness to take the 15-year-old company private. The message also surprised federal regulators. Yet green energy activists have the most to gain and lose if Tesla’s shareholders move forward with the suggestion — they must put their trust in Musk and forgo any public scrutiny of the company.

Private company management is not subject to the usual public monitoring and scrutiny of those that go public — analysts, short sellers and regulatory agencies, for instance, provide people information about Tesla before they purchase shares. Musk’s online behavior, inability to hit important deadlines and criticisms of the media might give future shareholders pause.

Analysts - Musk - Tesla - Suggestion - Probability

Analysts are skeptical that Musk and Tesla will go ahead with the suggestion. “The probability that tesla goes private is extremely low,” John Thayler, a market analyst and founder of JAT Capital Management, a multi-billion dollar global equity investment firm, told The Daily Caller News Foundation.

“One of the direct flaws in Musk’s suggestion is that the people currently holding public stock will continue being able to hold stock,” he said, referring to Musk’s comments in a Tesla blog in which the California billionaire suggested those who currently hold shares in the company can roll over their shares when the company goes private.

Shareholders - Shares - Company - Thayler

“Most shareholders won’t be able to roll their shares over if the company goes private,” Thayler noted before giving the...
(Excerpt) Read more at: dailycaller.com
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