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A tweet from him: "My hope is all current investors remain with Tesla even if we’re private. Would create special purpose fund enabling anyone to stay with Tesl

A tweet from him: "My hope is all current investors remain with Tesla even if we’re private. Would create special purpose fund enabling anyone to stay with Tesla. Already do this with Fidelity’s SpaceX investment." Still doesn't really make sense to me though. Not sure how that would work.

chillydawg 8y ago
Saudis&co give fund $lol, fund buys all tesla stock. Existing stockholders given option to buy % of the fund's stock with the cash they got from selling shares.
JumpCrisscross 8y ago
> A tweet from [Musk]: "My hope... Elon expressed a hope, not a goal. Fidelity's SpaceX SPV is restricted to a small number of accredited investors. Goldman tried the "put investors in a box, put the box on the cap table, and call the box 1 investor" schtick when Facebook was private [1]. While Facebook went public before they fell afoul of the law, the authorities clearly expressed their views on such structures [2]. [1] https://dealbook.nytimes.com/2011/01/03/facebook-and-the-500-person-threshold/ https://dealbook.nytimes.com/2011/01/03/facebook-and-the-500... [2] https://www.wsj.com/articles/SB10001424052748704723104576062280540485652 https://www.wsj.com/articles/SB10001424052748704723104576062...
Tomte 8y ago
He plans to shove all those small shareholders into another fund, call it "Tesla Investors". Tesla Investors then holds all those shares that the individual shareholders once held --> one shareholder, plus some big shareholders in Tesla. And the many small shareholders aren't technically shareholders in Tesla anymore, but in Tesla Investors, which distributes its Tesla dividends among the small investors. Matt Levine highly doubts that this obvious circumvention of securities law can fly, and so do I. Elon Musk is basically dreaming up cool "hacks" in his mind, but he has no clue about the law. It is improbably that he can pull something like this off.

chillydawg 8y ago

Saudis&co give fund $lol, fund buys all tesla stock. Existing stockholders given option to buy % of the fund's stock with the cash they got from selling shares.

JumpCrisscross 8y ago

> A tweet from [Musk]: "My hope... Elon expressed a hope, not a goal. Fidelity's SpaceX SPV is restricted to a small number of accredited investors. Goldman tried the "put investors in a box, put the box on the cap table, and call the box 1 investor" schtick when Facebook was private [1]. While Facebook went public before they fell afoul of the law, the authorities clearly expressed their views on such structures [2]. [1] https://dealbook.nytimes.com/2011/01/03/facebook-and-the-500-person-threshold/ https://dealbook.nytimes.com/2011/01/03/facebook-and-the-500... [2] https://www.wsj.com/articles/SB10001424052748704723104576062280540485652 https://www.wsj.com/articles/SB10001424052748704723104576062...

Tomte 8y ago

He plans to shove all those small shareholders into another fund, call it "Tesla Investors". Tesla Investors then holds all those shares that the individual shareholders once held --> one shareholder, plus some big shareholders in Tesla. And the many small shareholders aren't technically shareholders in Tesla anymore, but in Tesla Investors, which distributes its Tesla dividends among the small investors. Matt Levine highly doubts that this obvious circumvention of securities law can fly, and so do I. Elon Musk is basically dreaming up cool "hacks" in his mind, but he has no clue about the law. It is improbably that he can pull something like this off.