Comments by "Terje Oseberg" (@terjeoseberg990) on "Tesla Board Struggles to Control Elon Musk" video.

  1. I keep seeing this bogus claim that it will cost $70 billion for "the buyout". When did Musk ever say anything about a buyout? He didn't. He said that all current shareholders will have the opportunity to maintain their investment in Tesla. So how many are actually going to sell? Well, we know for a fact that Musk isn't going to sell his 20% because he said so. Musk said that he estimates that 2/3rd of current shareholders will keep their shares. Well, there are about 170 million outstanding shares. And there are 35 million shares sold short. That means that there are 205 million shares owned by someone. (The short sellers sold their shorts to someone who believes that they own their shares, right?) So, 2/3 of 205 million is about 136.7 million shares that won't be sold and 68.3 million that have to be bought. Well, 35 million of those will have to be bought by the short sellers who will be forced to buy them back, right? That leaves only 33.3 million shares that need to be bought to complete the transaction. That amounts to $14 billion, not the $70 billion that people keep claiming. So, why do they keep claiming that this is a $70 billion deal when it's not? And that this will be the biggest deal in history and nobody has that kind of money. I did the same calculation for 25% selling instead of 1/3 and I come up with $6.825 billion required to complete the transaction. If 1/5 of the shareholders sell, it'll cost $2.52 billion. if 1/6 of the shareholders sell, then, well 1/6 is less than 35 million so there will still be $350 million of shorted stocks. I guess 833,000 shares won't be able to be converted to the fund. That means that it's actually possible that it's impossible for everyone who wants to will be able to keep their shares. If that happens, how will they pick who doesn't get to keep their shares? Will Tesla issue 833,000 new shares so that everyone can keep them? That would raise $350 million. To be fair, that's what I believe that Tesla should do in the event that not enough people want to sell. So, it's actually possible that Tesla need no funding to take Tesla private and it's even possible that the only way they can be fair is to issue more shares so everyone can keep their investment in Tesla.
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