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Everything You Need to Know About Elon Musk Taking Tesla Private

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Elon Musk and the Big Tesla Buyout

In 2010, electric car company Tesla, headed by CEO Elon Musk, became a publicly traded company. The company launched on the NASDAQ at only $17 a share. Right now — in mid-August 2018 — the stock is sitting at $305.50 a share. That might change dramatically in the not too distant future, though. Elon Musk has been talking about taking Tesla private, eight years after it launched on the public market. If the company chooses to go private, what do you need to know? Especially if you are currently a proud owner of some Tesla shares? What will this mean for the company in the future?

Should I Stay or Should I Go?

If the company does go private, current investors have two choices: they can either stay with the company as it makes this transition or they can choose to sell their shares before the change happens. For casual investors, the latter option might be more lucrative. If shareholders choose to sell, they’ll be able to sell their shares at $420 a share. Or instead, a full $115 more than the current share price.

For investors, the switch for Elon taking Tesla private means they’ll only be able to access their funds once or twice a year instead of being able to buy or sell whenever they please. If Musk decides on taking Tesla private, then the shares are no longer a liquid asset.

Experts are advising investors to “take the $420 and run,” in part because a privately traded company would need some extremely aggressive future growth to be able to justify that kind of share price.

Musk would prefer that all current shareholders remain part of the new fund. Still, they all have the right to sell before the transition of being a privately held company if they so choose.

Tesla’s Special Committee

Elon Musk isn’t planning this massive buyout on his own — he’s working with some of the biggest names in the finance industry. On Monday, he announced that he was working with the Goldman Sachs Group and the Silver Lake investment firm to help them hash out the terms of the transaction. This is a bit out of Silver Lake’s wheelhouse — they usually handle financial advice for individuals rather than companies.

The whole situation is a bit unorthodox, especially since Musk announced the plans for the transition to taking Tesla private on Twitter before informing the company’s board of directors. This isn’t the first time Musk has made this kind of announcement on social media before the information was revealed “formally.” While he stated that funding has been secured for the buyout, he declared taking Tesla private before the deal with actually solid.

To help handle any negotiations, a special committee has been established. Brad Buss, Linda Johnson Rice and Robyn Denholm have been given full authority to evaluate the possible transition and handle any negotiations.

At this point, there are no assurances, even if a buyout can be negotiated, that the current shareholders will even accept the proposal.

The Future of Tesla

If the buyout proposal is accepted, what will that mean for the future of the electric car company?

It’s hard to say at this point because we have so few details about the potential transaction. Musk’s social media campaign may have been designed to scare away share short-sellers — a class-action lawsuit has been proposed specifically for that reason. The suit claims that the tweets were designed to artificially inflate the company’s stock prices.

It could be a smart move for the company. First, going private helps reduce management overhead costs. Decisions could be simpler or more streamlined because the company would no longer have to worry about playing to the shareholders or holding a vote every time a major decision needs to be made.

It’s also more difficult for companies like Tesla to function well as publicly traded organizations. Not only can it be distracting, but it can also make it harder for the company to plan a long-term strategy, because they are restricted to a quarterly earnings cycle and reporting.

In the case of popular companies like Tesla, being public traded also makes the company the target of short-sellers. Tesla stock has the distinction of being the most shorted stock of all time. Short selling is the practice of selling a stock when the price is high and buying it back at a lower price to repeat the process. It’s risky for the investor, but it can be damaging to the company as well.

In the long run, a lot of things would remain the same. Musk would still own 20 percent of the company and employees would remain shareholders. Now, instead of being able to trade their shares freely, they’ll have the option to buy or sell every six months.

We’ll just have to wait and see as the negotiations play out over the next few months. Even the industry experts aren’t quite sure where this is going to end up.

Going Private and Beyond

Elon Musk has earned a reputation for being unpredictable, much to the chagrin of his board of directors. This is the latest in a long line of statements on Twitter that have sparked dramatic change and an instant response. Whether the company goes private or not will be up to the shareholders. Even if Musk has already secured the roughly $73 million it will take to complete this massive change.

It might take awhile before we get any comments back from Tesla on how this is going to play out. If the company chooses to go private, it might allow the tech giant to make even more ambitious leaps. They can touch in fields like self-driving cars and artificial intelligence now. Anyone who decides to bail out at $420 a share might make bank. Although, they will be giving up being part of those advances.

It will be interesting to see if this sets a standard for CEOs on social media, too. If a post on Twitter can turn a multi-million-dollar company on its ear, it might change the way company owners interact with the public altogether.

Kayla Matthews is a tech journalist and writer whose work has been featured on The Week, VICE and MakeUseOf. Read more posts by Kayla on productivitybytes.com.

Business

5 Strategies To Massively Save On Your Holiday Spending

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Regardless for those who are buying presents on-line or in-person, you continue to need to lower your expenses.
Whereas many individuals neatly use rewards playing cards and coupons, they’re nonetheless lacking out on beneficial financial savings, which can price you serious money. These firms might help.

Get smarter about rewards

Curious which reward program suits you greatest? Birch helps you discover new bank cards based mostly in your spending habits.
Have already got playing cards with cash-back bonuses? You need to nonetheless try the finance app because it additionally helps you optimize what’s already in your pockets.

By grouping your transactions into classes, Birch exhibits you which of them card provides you essentially the most bang to your buck. You’ll never miss a another reward.

Money made simple

Utilizing Ebates is as simple as one, two, three: Join, Earn Cash, Earn Cash again. I’m not kidding.
Free Ebates memberships let savvy buyers seek for combining shops, and with one click on – and a coordinating purchase – you’re creating wealth. I’ve been a member for years.

The web site is straightforward to navigate, together with helpful day by day offers. There’s even a Chrome extension that permits you to simply store with out ever skipping out on reward money again. So even for those who ever neglect to undergo Ebates first, the Money Again Button will notify you.

Easy financial savings

With greater than 600,000 coupons at over 70,000 retailers, Retailmenot has every thing you have to save over the vacations – from coupon codes and cashback provides to meals offers and in-store gross sales.
The web site exhibits customers the highest trending reductions, whereas the app makes it simple to save lots of at your favourite shops and eating places proper out of your cellphone.

For these optimistically venturing out to brick-and-mortar shops, the the digital provides market makes use of push notifications and message-prompts to assist buyers and companies alike.

Flip reward playing cards into gold

Present playing cards amassing mud? Flip them into playing cards you really need or cold-hard money with the most important reward card change on the earth.
CardCash desires your undesirable reward playing cards and truly pays you as much as 92 % of the cardboard worth.

Have somebody in your elevate that’s arduous to buy? I believe you’ll in all probability seize them a present card. Why not do it at a reduction and select from the king-of-card’s big stock?

Giveback whereas gifting

It’s the season of giving – we wouldn’t be speaking about presents if it weren’t – so why not give again whereas procuring?
The world’s first-ever shopfunding web site, GoodShop donates a portion of what you spend once you store at 1000’s of shops on their web site.

From nationwide charities to native colleges and group teams, once you store with Goodshop you not solely save, however you give again.

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Using Live Video To Double Your Business

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live video

Instagram Live Video, Facebook Live Video, and Periscope – more than likely you would have heard of these social media platforms, but did you know they are the latest technological breakthroughs for users to incorporate into their business? These platforms allow you to connect powerfully and easily with your audience, which means as an entrepreneur, you are able to personalize your brand and business amongst targeted viewers.

Engaging with your audience is key to running a successful company. Gone are the days where you can just create a website, cross your fingers, and hope that people will find it and contact you for your products or services. We live in a new era, where billions of people are constantly connected to their smart phone. According to Facebook, there are 1.18 billion active users that visit their social network on a daily basis! So with the Live Video option, you are now able to literally interact in real time with your audience. Think what that can do for your business.

The first thing you may be asking yourself right now is, how can I reach more people without a large following? Well, the easiest and quickest way to build a responsive following is to become Keyword specific. This means that you are targeting people specifically interested in your niche and what you have to offer. It is better to have 100 followers that are engaged and interested in buying your product or service than 1,000 followers that take little to no action on your offers. One of the fundamental keys to your business growth is to create an organic following.

 

How to build a following organically

 

Content is king

The more value and content you post regularly on social media — the more followers you are going to gain. People want to learn, be entertained, and see valuable posts from you.

Assuming you’re doing this and you have a responsive following, now you are able to incorporate Live Video! Before you “go live” you must have a game plan on exactly what you will be talking about. Go in prepared or you’ll lose interest and engagement.

Keep in mind the attention span of the average person is extremely short, so you have one chance and one chance only.  Make it count! Lucky for you, you don’t have to be on Live Video for too long to get your message across. A handy acronym to use is: K.I.S.S: Keep it short and simple! Your audience will love you for that, trust me!

Build a bond

Like anything worthwhile in life, the power of our bonds with others is what binds us together.  Strip all the technology away and we are simply human beings creating connection and bonds, which create trust and trust creates fans and buyers. With your current audience, you must build a bond, in other words, a relationship with them. You can do this with live video. Have a conversation with your audience, while keeping them entertained. Ask questions, acknowledge your viewers, and deliver value that they can take away once you’re done.

Now that you’ve created a relationship with your audience ask them to spread the word by liking to share and comment. The more likes and shares you get, the further your reach gets. Now the way Facebook’s algorithm works is, with the more activity that is happening on your post or feed, they will make sure everyone can watch it and have the opportunity to engage. Whenever a user logs onto Facebook, they will see you first on their feed!

Create a contest

People love winning. Creating a giveaway or a contest that gives your users the chance to gain something by participating will spread your name and page around Facebook like wildfire. It’s scary how fast news will spread when done correctly. A word of caution: Make sure you set clear and concise rules to your contest to avoid unnecessary drama or miscommunication.

On your post, make sure to include a form. Here, you will gather the user’s information: name and email address. These two requirements are essential for you. You have not only gained new leads for your business, but your new leads have also done free advertising work for you and your business. By liking, sharing, and commenting on your post, they have now expanded your message to their following, giving them the opportunity to participate in the contest and spread the word even farther. There are a ton of ways you can grow your audience exponentially with a few cleverly executed strategies.

Live Video Doubling Your Business

Providing value and entertaining info on your product or service without sounding like a door salesman will take you a long way. At the end of each video, provide a call to action for your audience to participate in. An example of this could be, “Click the link in my bio to learn more.” Keep in mind that you do not have to provide a call to action in every video. Spamming your viewers will only backfire.

Another approach you can have is leaving a cliffhanger at the end of each video where your viewers will want to see your next Live Event. It leaves you with suspense, which ultimately makes you come back for more. That’s the effect you need to have on your audience.

Your call to action could be clicking a link that you’ve posted on your page, tagging a friend on your most recent post, and/or leaving a comment with their email on your post. The link that the user will be clicking should direct them to a landing page where you will be able to provide the user with value and an offer. That ties back into a sales funnel, where you can convert leads into buyers.

At the end of the day, Live Video allows you to connect with your audience on a personal level. This form of communication will be help you convey your message more clearly as they watch you live. You will have a better connection with your viewers as you build a connection through emotions. Live video allows your audience to learn more about you, your business and what you’re selling. Make it exciting, provide value,  develop creative call to actions for your audience and watch your business grow.

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How To Start 2018 For Your Business

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2017 new year

2018 is knocking, are you ready? The new year is upon us, some may be celebrating another successful year with champagne, where others may be contemplating on the next strategy to implement for their business. As you figure out which side of the coin you’re on, it’s best to understand the most effective approach you should take to make sure 2018 is not only better than 2016, but your best year yet.

Go Back To Basics in Business

To have a successful year, it starts with the basics. You need feel secure and confident that the foundation you have set, will help you excel in the new year. Having that confidence in your system, finances, and administrative work, will allow you the peace of mind to continue moving the needle forward in business.

If entrepreneurship is in the cards for 2018 (or you’re already an entrepreneur/business professional), then this is the time to look at the preparatory checklist and assess exactly where one stands. Here is how to start 2018 , the right way.

Have the Right Mindset Day One

Forget all of the negativity that happened in 2016. It’s a new year and a completely new slate.

Review Your Financials

Check up on the left over cushion money, but more importantly look at your bank statements or end of year review. If you’re not already working with your accountant, be sure to give that individual a call to review what happened this year. To hit 2018 in stride, it’s critical to have your personal and business finances in check.

Check Up On Your Business Plan

A proper business plan has to be a blueprint to how you conduct and want to conduct business. Take the time to revise your business plan add or subtract items on that plan you feel do not make sense. Being diligent now will save a lot of unnecessary hassles later as you continue to expand/grow your company.

Select Your Team Members Wisely

Coming from experience, finding the proper talent to work for you is the hardest part of business. Before making new hires, be sure you take the time to assess your teams’ strengths and weaknesses. Then hire those to fill the voids. Reviewing your business plan will be a tremendous help when making these evaluations.  If you hire right in 2018, you are already on your way to success in 2018!

Assess Your Risks

Finally, check on your insurance coverage. Review the existing risks and think about the new risks planned for 2018. A new home, a new car, addition of new properties, launching a new sector of your business, starting a new family, planning retirement – carefully plan and cover the risks with the adequate insurance. Consult with the experts to ensure the protection of your family, property and business.

Personal Growth

As important as your business is, it’s equally important to get your mind right. Here are a few ways you can personally grow in 2018:

Prioritize Your Health

Sustaining a wellness plan for all 12 months of 2018 is tough, but rewarding. Do not let minor issues like back pain or soreness to affect your plan. Write down your goals for daily exercise and schedule an annual medical checkup. A healthy body works like a magnifying glass for the joys of life – zooming in on the positives and zooming out when negatives occur. Don’t get distracted and be sure to get your health corrected this year.

Declutter and Organize

Look through the space in your house, office, car, backyard and even phone and email inboxes. Clean up all the junk, sort the remaining in order. The time and effort put in to declutter and organize the stuff now will give a huge advantage on the upcoming year’s activities. Start it off with a fresh plate.

Treat Yourself

Don’t spend all of your time working in 2018.  Try to relax more by doing things you find fun.  Participate in social and cultural events that will expand your current limits. Make time to read books (both for business and pleasure), watch movies, or cater to a hobby. Plan ahead and make a wish list to cultivate some of the classics this year. If budget permits, go for a new wardrobe (maybe at least partially new) to start the year with a special zing!

Travel More

Plan for trips outside the scope of business in 2018. Go with friends and family or make it a solitary trip. But do visit a new place, experience a new cuisine, meet new people, even try to pick up a new language from the locals when traveling.  Going on a relaxing trip is one of the best modes of investing in yourself. Plan to make some memories and memoirs on the trip(s).   

Make Time for Family and Friends

Finally, catch up with friends, attend family get together events, meet up with cousins, and celebrate birthdays and anniversaries! Don’t get too occupied with work, career and the future ahead. Enjoy the present with the people you love. Family and friendships are not replaceable assets in one’s life – value them most and 2018 will be a great year!
Have a great 2018!

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