ELON MUSK IS GOD

[Sanlmar]

I thought this SeekingAlpha take was the definitive take.

Why Elon Musk Desperately Needs Tesla Stock To Stay Above $360
General ExpertAug. 7, 2018 8:25 PM ET

Elon Musk told everyone through Twitter that he's thinking about taking Tesla private at $420/share.

I see little substance about his announcement as there's no financing commitment and there's no definitive offer.

I believe that this was an attempt to drive the stock price above $360.

A stock price above $360 would mean that Tesla would not have to repay $920 million of debt due in March 2019 with cash.

If Tesla is forced to repay the debt with cash, the company will likely have to do another capital raise, contrary to what the management team promised in Q2.

Tesla’s (TSLA) CEO has become more and more “spontaneous” in recent quarters. But between putting down analysts on conference calls and attempting to rescue kids trapped in a cave in Thailand, Elon Musk has at least stayed true to his passion of “burning the shorts.”

In perhaps the most brazen attempt to “burn the shorts,” Musk has announced on Twitter that he intends to take the company private at $420/share, a 23% premium over the market price prior to the announcement.

I believe there's little substance behind this announcement as Musk has failed to provide more details about funding commitment (other than that it has been "secured," whatever that means), and he further stated that he's only “considering” going private on the blog post that elaborated on his proposal. The lack of commitment signals to me that the announcement is merely a ruse designed to increase the stock price in the short term, with $360/share being the critical level.

Perhaps you don’t agree with me regarding Musk’s true intention, but I believe that you still need to understand why $360/share is important to Tesla.

On Tesla’s Q2 conference call, Musk promised that there's no need to raise capital as the company would be “cash flow positive for every quarter going forward.” However, I believe that he missed an important caveat:The stock price must be above $360/share by March 1, 2019, that's eight months from now.