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Going private, wouldn't it be a bigger distraction for everyone working at Tesla to wonder whether they can find a private buyer or not for their shares and wha

Going private, wouldn't it be a bigger distraction for everyone working at Tesla to wonder whether they can find a private buyer or not for their shares and what their shares are actually worth?

nine_k 8y ago
Won't the company agree to buy their granted shares at a fixed price? (I don't know; there can be wildly different arrangements).
heisenbergs 8y ago
> Second, my intention is for all Tesla employees to remain shareholders of the company, just as is the case at SpaceX. If we were to go private, employees would still be able to periodically sell their shares and exercise their options. This would enable you to still share in the growing value of the company that you have all worked so hard to build over time.
austenallred 8y ago
I can't imagine anything more distracting than a big number that goes up and down minute to minute changing the value of the equity they hold
- WJW 8y ago
  So how do all the other companies do it then? It is not like Tesla is the only public company where some or all employees hold stock, and it is not the only one with a volatile stock price either.
  - austenallred 8y ago
    There are fewer public companies all the time https://www.bloomberg.com/view/articles/2018-04-09/where-have-all-the-u-s-public-companies-gone https://www.bloomberg.com/view/articles/2018-04-09/where-hav...
    - lylecubed 8y ago
      There's a financial crisis of one type or another every 7 years. Each time, more and more regulation is put in place to make sure it doesn't happen again. It's only a matter of time before congress hangs too many ornaments on that particular christmas tree and it falls over. I remember when Sarbanes Oxley was passed in 2002. I was in college and one of my professors was advocating becoming a SAP engineer specializing in SOX compliance. The cost of compliance was estimated to be gigantic, which meant lots of highly paid (but boring) work for enterprise programmers.
- nightski 8y ago
  I feel like it mainly does that because Musk fails to set realistic expectations and then goes on tantrums whenever someone is negative about the outlook. I admire his ambition and he is great for Tesla in general but as far as managing a public company his approach hasn't been very successful.
  - lylecubed 8y ago
    > I feel like it mainly does that because Musk fails to set realistic expectations and then goes on tantrums whenever someone is negative about the outlook. That's about as fair as saying there's a cabal of billionaires shorting Tesla stock and using their media companies to drive the price down every chance they get. Either way, going private eliminates the noise.
  - kbad1000 8y ago
    This is true. For example, deadline for Model 3 was set much lower compare the Bolt. Even though Tesla make money on every sell of Model 3 and GM loses on every sell of Bolt money. Tesla is the one in negative news because of too high expectations.
- greenhatman 8y ago
  I agree with this. This is the main reason I don't hold cryptocurrencies. I can't concentrate on work when I have to watch the price the whole time.

Going private, wouldn't it be a bigger distraction for everyone working at Tesla to wonder whether they can find a private buyer or not for their shares and what their shares are actually worth?

nine_k 8y ago

Won't the company agree to buy their granted shares at a fixed price? (I don't know; there can be wildly different arrangements).

heisenbergs 8y ago

> Second, my intention is for all Tesla employees to remain shareholders of the company, just as is the case at SpaceX. If we were to go private, employees would still be able to periodically sell their shares and exercise their options. This would enable you to still share in the growing value of the company that you have all worked so hard to build over time.

austenallred 8y ago

I can't imagine anything more distracting than a big number that goes up and down minute to minute changing the value of the equity they hold

WJW 8y ago
So how do all the other companies do it then? It is not like Tesla is the only public company where some or all employees hold stock, and it is not the only one with a volatile stock price either.
- austenallred 8y ago
  There are fewer public companies all the time https://www.bloomberg.com/view/articles/2018-04-09/where-have-all-the-u-s-public-companies-gone https://www.bloomberg.com/view/articles/2018-04-09/where-hav...
  - lylecubed 8y ago
    There's a financial crisis of one type or another every 7 years. Each time, more and more regulation is put in place to make sure it doesn't happen again. It's only a matter of time before congress hangs too many ornaments on that particular christmas tree and it falls over. I remember when Sarbanes Oxley was passed in 2002. I was in college and one of my professors was advocating becoming a SAP engineer specializing in SOX compliance. The cost of compliance was estimated to be gigantic, which meant lots of highly paid (but boring) work for enterprise programmers.
nightski 8y ago
I feel like it mainly does that because Musk fails to set realistic expectations and then goes on tantrums whenever someone is negative about the outlook. I admire his ambition and he is great for Tesla in general but as far as managing a public company his approach hasn't been very successful.
- lylecubed 8y ago
  > I feel like it mainly does that because Musk fails to set realistic expectations and then goes on tantrums whenever someone is negative about the outlook. That's about as fair as saying there's a cabal of billionaires shorting Tesla stock and using their media companies to drive the price down every chance they get. Either way, going private eliminates the noise.
- kbad1000 8y ago
  This is true. For example, deadline for Model 3 was set much lower compare the Bolt. Even though Tesla make money on every sell of Model 3 and GM loses on every sell of Bolt money. Tesla is the one in negative news because of too high expectations.
greenhatman 8y ago
I agree with this. This is the main reason I don't hold cryptocurrencies. I can't concentrate on work when I have to watch the price the whole time.