"It's Overvalued": Musk Approached SoftBank About Tesla Investment, Talks Then Fell Apart

With everyone desperate to discover just who is funding this debacle of an LBO/MBO, Bloomberg  is reporting that Musk and Masayoshi Son held talks last year about SoftBank investing in Tesla, including potentially taking the electric carmaker private - but talks broke down over disagreements on control.

Son and Musk met in April 2017 to discuss an investment in Tesla, the people said.

The talks touched on taking Tesla private, but failed to progress due to disagreements over ownership. Musk proposed a structure that would have given him disproportionate control over the company through stock with super-voting rights, one person said.

There are no active talks between the companies now, said the people, who asked not to be identified discussing private deliberations.


There was more bad news: the FT adds that "people close to SoftBank tell the FT that the fund considers Tesla to be overvalued and there are no indications it wants to invest."

And then there is the new trade war world to consider:

Even if it did want to add Tesla to its stable, SoftBank may face an obstacle in the form of the Committee on Foreign Investment in the US (Cfius), given its close links to China and record of previous hold-ups on other deals.

Investors are unsure whether to be excited (Softbank 'were' interested) or troubled (talks are over).

Perhaps more worryingly for Tesla shareholders, The FT reports that Softback is said to see Tesla as overvalued.

And so, the hunt for the mystery "funding source" of Musk's buyout continues...

"Most of the obvious funding sources for Tesla’s take-private transaction are foreign-based," Toni Sacconaghi, an analyst at Sanford C. Bernstein & Co., wrote in a note. "We imagine the Committee on Foreign Investment in the U.S. would likely object to any foreign investor buying a significant portion of a distinctively American manufacturer such as Tesla"

And for now, TSLA bonds ain't buying it...

Comments

glenlloyd ParkAveFlasher Wed, 08/08/2018 - 14:43 Permalink

Really? Overvalued? What was your first clue? The fact that they build cars that burst into flames? Well what do you know!

Musk is very good with the shuck n jive and dodging big issues but in the end it'll all fall into a pile no matter what he does because yes, it's fundamentally overvalued because it builds junk product.

Tesla is just another pump n (eventually) dump situation

In reply to by ParkAveFlasher

Not Too Important Stan Smith Wed, 08/08/2018 - 14:35 Permalink

'Yep, Elon Musk is serious about taking Tesla private for $420 a share'

https://bgr.com/2018/08/07/tesla-going-private-yup-apparently-so/

"4204:20, or 4/20 (pronounced four-twenty) is a code-term in cannabis culture that refers to the consumption of cannabis, especially smoking cannabis around the time 4:20 p.m. (or 16:20 in 24-hour notation) and smoking cannabis in celebration on the date April 20 (which is 4/20 in U.S. form)."

https://en.wikipedia.org/wiki/420_(cannabis_culture)

Tesla has a market cap of $52.42 billion dollars, and all the CEO can do is make drug jokes.

I hope those shareholder lawsuits get every bit of whatever is left when Musk is done trashing the joint. All the senior people with an ounce of sense are gone. Who's left to pull this disaster together? The 'JV' team?

 

In reply to by Stan Smith

lock-stick PrivetHedge Wed, 08/08/2018 - 14:57 Permalink

It's all ONE SICK, PATHETIC SPAMMER!!!

•• PrivetHedge

•• Free This (SOON COME, in all his 7th grade glory - JACKASS  as new icon!)

•• roea.rita ("I SUCK DICK ON THE INTERNET FOR LAND ROVERS!")

•• Adolfsteinbergovitch ("I TORMENT THE WOMAN WHO SUCKS DICK!")

•• lisa.roy39  ("I SUCK DICK ON THE INTERNET FOR LAND ROVERS!")

•• Leakanthrophy (PORN for Jesus!)

•• Cryptopithicus Homme (bitcoin spammer - imaginary "friend")

•• 07564111 ("I PRETEND I DON'T KNOW ANY OF THEM!")

•• MoreSun (whacked, OH SO WHACKED!!)

•• Africoman

•• Sanctificado

•• beemasters

•• Cheolli

•• bobcatz

dozens and dozens and dozens of banned log-on's -- more than seven years!

 

....and all the while, the pathetic little SPAMMER sits in his leaky, moldy, smelly single wide in Western New York, surrounded by garbage and dirty clothes, trying to find his dick amidst rolls of fat, talking to his ACTION FIGURES and wondering where his life went.

 

It's all ONE SICK, PATHETIC LIDDLE SPAMMER!!!

In reply to by PrivetHedge

Not Too Important ted41776 Wed, 08/08/2018 - 14:38 Permalink

Did you say the SEC?

'Peter Strzok's wife was promoted to SEC director hours after FBI found Hillary emails on Weiner's laptop'

"Hours after the FBI found classified Hillary Clinton emails on Anthony Weiner's laptop, the wife of the FBI agent running the high-profile probe was promoted to a powerful position in the Securities and Exchange Commission, FBI sources said. 

This case keeps getting worse for the FBI and embattled agent Peter Strzok, the lead investigator on the Clinton probe. His wife Melissa Hodgman was promoted to deputy director of SEC's Enforcement Division literally hours after Strzok and FBI Deputy Director Andrew McCabe were debriefed about the Clinton emails found on Weiner's computer."

https://www.sott.net/article/371308-Peter-Strzoks-wife-was-promoted-to-…

 

In reply to by ted41776

Snaffew ted41776 Wed, 08/08/2018 - 14:43 Permalink

the SEC has never done their job as a watchdog agency. They'll let corporations profit billions off of illegal practices and then in a pre-determined move, fine them $50 mill for those criminal actions.  It's just a small tax on the cost of fucking people over.  The SEC is a figurehead, bullshit organization that is in the back pockets of corporations.  The next time Frankenstein's monster really gets the townspeople outraged, it won't be pitchforks in their hands.

In reply to by ted41776

Snaffew Al Huxley Wed, 08/08/2018 - 14:28 Permalink

If what Musk said yesterday is just talk to burn shorts and get the company out of bond trouble, then it amounts to blatant market manipulation and grand larceny---on both ends---longs and shorts.  $Billions in theft deserves decades in prison.  The petty crimes committed in this country land tens of thousands into sentences much longer than any wall street crimes ever do.  The disparity of punishment in this country between the rich and poor who perpetrate crimes is a crime against the poorer and darker American citizens.  The justice system in this country is FUBAR.  Fuck Musk with a big, black rubber dildo.  He'll probably still have that same smirk on his face regardless.

In reply to by Al Huxley

Snaffew PrivetHedge Wed, 08/08/2018 - 14:45 Permalink

no, you are correct...it is accepted practice and the SEC imposes a user tax on these corporations occasionally in the form of a small fine to keep the townspeople happy.  On extremely rare circumstances, some mid level douchebag takes the fall, goes to a federal camp for 18 months, and keeps his stock options for when he gets out.

In reply to by PrivetHedge

lock-stick Snaffew Wed, 08/08/2018 - 15:00 Permalink

It's all ONE SICK, PATHETIC SPAMMER!!!

•• PrivetHedge

•• Free This (SOON COME, in all his 7th grade glory - JACKASS  as new icon!)

•• roea.rita ("I SUCK DICK ON THE INTERNET FOR LAND ROVERS!")

•• Adolfsteinbergovitch ("I TORMENT THE WOMAN WHO SUCKS DICK!")

•• lisa.roy39  ("I SUCK DICK ON THE INTERNET FOR LAND ROVERS!")

•• Leakanthrophy (PORN for Jesus!)

•• Cryptopithicus Homme (bitcoin spammer - imaginary "friend")

•• 07564111 ("I PRETEND I DON'T KNOW ANY OF THEM!")

•• MoreSun (whacked, OH SO WHACKED!!)

•• Africoman

•• Sanctificado

•• beemasters

•• Cheolli

•• bobcatz

dozens and dozens and dozens of banned log-on's -- more than seven years!

 

....and all the while, the pathetic little SPAMMER sits in his leaky, moldy, smelly single wide in Western New York, surrounded by garbage and dirty clothes, trying to find his dick amidst rolls of fat, talking to his ACTION FIGURES and wondering where his life went.

 

It's all ONE SICK, PATHETIC LIDDLE SPAMMER!!!

In reply to by Snaffew

Blankenstein PrivetHedge Wed, 08/08/2018 - 16:22 Permalink

Well, the GE three for municipal bond bid-rigging and two hedgefunders who were former SAC employees, for insider trading.  

But, then surprise, surprise, surprise,  both of these cases were overturned on BS technicalities.  

The judges and US attorneys are in on it, just like the SEC.

https://www.bloomberg.com/view/articles/2013-12-05/the-ge-three-go-free

https://www.cnbc.com/2014/12/10/us-court-overturns-insider-trading-conv…

In reply to by PrivetHedge

Dr. Acula Cash Is King Wed, 08/08/2018 - 15:15 Permalink

>I don’t see how he squirms out of this one

If Elon is high enough in the satanist hierarchy, then nothing will happen.

Remember, Peter Strzok's wife is an SEC director.

SEC personnel will look the other way, e.g. at the porn on their computer screen, instead of stopping Elon:

https://abcnews.go.com/GMA/sec-pornography-employees-spent-hours-surfin…

How much porn was the SEC watching during their 9/11 so-called investigation?

In reply to by Cash Is King

stacking12321 nachtliche Wed, 08/08/2018 - 20:07 Permalink

Wrong on both counts,

just building something by burning through $billions is not an achievement.

making a quality item that people buy and makes the company money, is an achievement.

we’ll see if musk’s plan of fake-it-til-you-make-it works out.

second, manipulators are not money changers and money changers are not manipulators - the real manipulators are the counterfeiters (the fed)

In reply to by nachtliche