Elon Musk causing mayhem on Wall Street

He tweeted he is considering taking his company Tesla Private and the stock jumps. It actually was halted for a while.

The stock is on a wild ride. People do not know if he is serious or not. Many of his claims are pie in the sky. He may have committed security fraud.

Shorts are getting killed right now. They are panicking. Stock could be at 600 or 200.... very volatile.

Bucky said:

He tweeted he is considering taking his company Tesla Private and the stock jumps. It actually was halted for a while.

The stock is on a wild ride. People do not know if he is serious or not. Many of his claims are pie in the sky. He may have committed security fraud.

Shorts are getting killed right now. They are panicking. Stock could be at 600 or 200.... very volatile.

Click to expand...

So in addition to all the other problems threatening to kill the company now Musk wants to load it up with debt....at a valuation that makes Zero sense...just as the competition is ramping up to hammer them?

This looks like a last gasp.

there are 169,794,000 outstanding shares.

The reason for the jump is that there is a huge buy pressure on the news he is going private.

to go private he will have to buy back all outstanding shares at an agreed to price by
the shareholders. so people are buying up as many shares as they can get in order to probably
drive the price as high as they can and get a better deal.

ludin said:

there are 169,794,000 outstanding shares.

The reason for the jump is that there is a huge buy pressure on the news he is going private.

to go private he will have to buy back all outstanding shares at an agreed to price by
the shareholders. so people are buying up as many shares as they can get in order to probably
drive the price as high as they can and get a better deal.

Click to expand...

He just secured 2 billion from the saudi arabia sovereign wealth fund.

He is a wild man. Basically Donald Trump and Stephen Hawkins combined. He either will take Tesla to the moon or it will be an epic crash.

You may see these shorts committ suicide. They are losing everything!

Bucky said:

He just secured 2 billion from the saudi arabia sovereign wealth fund.

He is a wild man. Basically Donald Trump and Stephen Hawkins combined. He either will take Tesla to the moon or it will be an epic crash.

You may see these shorts committ suicide. They are losing everything!

Click to expand...

I am sure some people are shorting the stock. The last time they shorted the stock they lost their ass.
i didn't realize how bad it was.

Tesla is one of the heaviest shorted stocks out there.
there is about 9b shorted on tesla stock.

his tweet to buy it back surges the stock price it forces those that short to pay out or back to the investors.
tesla investors are losing about a million dollars a day on short interest.

it technically is a brilliant short term move. even if he doesn't follow through with it he has stablized the shorts on his stock
and forced them to pay back.

that is why it surged. he has the funding to pay 420 dollars a stock to the 360 price it is at.
that is a huge premium of a buy back. the stock was surging almost 7% up as people scrambled to buy
as many shares as they could.

that right there just smacked the short sellers in the head a few times.

that will recover a ton of funding and frankly going private will free up musk to run the company has he see fit.
he will no longer have a fiscal duty to the shareholders.

his tweet today cost short sellers 1.3 billion dollars to recover.
short sellers on tesla have lost 5b in total.

Tesla (TSLA) is perhaps one of the most entertaining stocks in history to watch, a complete political and emotional buy which adds to the valuation for a company that has an annual negative net income going back to its IPO (to be fair there were 2 quarters of profitability but it was quickly squashed.)

The idea of Tesla is what drives its market valuation.

And that brings me to this subject, taking Tesla private at $420 a share would be the height of the insanity that has followed this company since the IPO. Getting $2 billion from a Saudi Fund is one thing, but Q2 this year they lost $717 million. They will go through that cash in no time, speaking of the returns suggest they have $2.2 billion in cash on hand (and $1.3 billion in monthly interest on Current Liabilities.)

Good luck Musk, I am suggesting shenanigans to the point that the SEC will have to step in.

OrphanSlug said:

Tesla (TSLA) is perhaps one of the most entertaining stocks in history to watch, a complete political and emotional buy which adds to the valuation for a company that has an annual negative net income going back to its IPO (to be fair there were 2 quarters of profitability but it was quickly squashed.)

The idea of Tesla is what drives its market valuation.

And that brings me to this subject, taking Tesla private at $420 a share would be the height of the insanity that has followed this company since the IPO. Getting $2 billion from a Saudi Fund is one thing, but Q2 this year they lost $717 million. They will go through that cash in no time, speaking of the returns suggest they have $2.2 billion in cash on hand (and $1.3 billion in monthly interest on Current Liabilities.)

Good luck Musk, I am suggesting shenanigans to the point that the SEC will have to step in.

Click to expand...

I think that is what he is trying to escape at this point.

if he can raise enough private equity he can get the bye out and not be smacked around by forces outside his control.
he can control the investors enough and it would be cheaper for him in the long run than it is right now managing all of these
shorts.

9 billion dollars in shorts on this stock. that alone is risky. they just lost another 1.3 billion today that has to be recovered and paid back.