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Not really. Attracting the right kind of investors is more important to him than attracting all the investors. There are folks with dollars who can stomach TSLA

Not really. Attracting the right kind of investors is more important to him than attracting all the investors. There are folks with dollars who can stomach TSLA, and there are folks who can not. Some might argue that it's better for the company overall (especially in the longer term) to attract the former and ignore the latter. The latter will generate a ton of noise, and cause great instability in the stock price because they frighten easily. Case in point: the price of TSLA today taking a dive because shareholders that cannot stomach TSLA are frightened for no good reason.

pvg 9y ago
Attracting the right kind of investors is more important to him than attracting all the investors. That seems a bit counter to the purpose of an open public market.
- pm90 9y ago
  Is it really though? An open public market just means that anyone can purchase the stock; not that just anyone should.
  - pvg 9y ago
    The GP was saying how important it was to Elon Musk to have the right kinds of investors rather than merely people who give you money. This is sort of the opposite of what a public capital market lets you do.
  - FireBeyond 9y ago
    The open public market means that the market decides who can purchase the stock, and that it's not the sellers place to decide who _should_ purchase the stock.
killjoywashere 9y ago
Interesting proposition: deflate your stock value which makes the stock more accessible to risk-tolerant investors, while shedding the sort of nervous investor you don't want.
- dragontamer 9y ago
  That also deflates your next round of equity offerings. Tesla will likely need to offer 10-million or maybe more shares to the market. Lowering your stock price before you offer equity is incredibly stupid. Unless Musk has a plan to get money from somewhere else?
  - erikpukinskis 9y ago
    Sales?
- vkou 9y ago
  It also makes it more expensive to borrow money, pay employees, and opens you to hostile takeovers.

pvg 9y ago

Attracting the right kind of investors is more important to him than attracting all the investors. That seems a bit counter to the purpose of an open public market.

pm90 9y ago
Is it really though? An open public market just means that anyone can purchase the stock; not that just anyone should.
- pvg 9y ago
  The GP was saying how important it was to Elon Musk to have the right kinds of investors rather than merely people who give you money. This is sort of the opposite of what a public capital market lets you do.
- FireBeyond 9y ago
  The open public market means that the market decides who can purchase the stock, and that it's not the sellers place to decide who _should_ purchase the stock.

killjoywashere 9y ago

Interesting proposition: deflate your stock value which makes the stock more accessible to risk-tolerant investors, while shedding the sort of nervous investor you don't want.

dragontamer 9y ago
That also deflates your next round of equity offerings. Tesla will likely need to offer 10-million or maybe more shares to the market. Lowering your stock price before you offer equity is incredibly stupid. Unless Musk has a plan to get money from somewhere else?
- erikpukinskis 9y ago
  Sales?
vkou 9y ago
It also makes it more expensive to borrow money, pay employees, and opens you to hostile takeovers.