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The theoretical "go private" option under current circumstances is probably out. Tesla would have to rely on Regulation D[0] to privately place its securities i
by piker 8y ago
The theoretical "go private" option under current circumstances is probably out. Tesla would have to rely on Regulation D[0] to privately place its securities in connection with going private. Being deemed a "Bad Actor" with respect to Tesla could eliminate that option as long as Musk is still a "Covered Person", which includes directors and executives, and, importantly, large owners of the issuer[1]. As SpaceX presumably relies on Regulation D to place its securities, this may have also already implicated SpaceX's ability to rely on Regulation D going forward.
[0] https://www.sec.gov/fast-answers/answers-regdhtm.html https://www.sec.gov/fast-answers/answers-regdhtm.html
[1] https://www.lexology.com/library/detail.aspx?g=6a9b59e7-1b37-476b-8edf-812f35935c91 https://www.lexology.com/library/detail.aspx?g=6a9b59e7-1b37...