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[–] draaaak 0 points 7 points (+7|-0) ago 

Maybe this is why Elon Musk wants to take Tesla private.

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[–] weezkitty 0 points 3 points (+3|-0) ago 

I can't really blame him there. Shareholders is why the ethics of so many companies go down the toilet

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[–] viperguy [S] 0 points 0 points (+0|-0) ago  (edited ago)

No, his is already safe being a delaware corporation.

He wants to take it private because he borrowed 50% againt his 20% ownership of TELSA, and that collateral is gravely endangered in a forced stock liquidation in a graduated one day market crash if his stock drops to 50% of the level he took the loan out using his own stock as collateral.

IN ENGLISH : If for whatever reason 'TSLA' stock goes down far enough and Elon cannot cover his massive loans on his own shares, a huge amount of his stock is sold creating a VICIOUS CIRCLE. If he can pop up or manipulate the stock momentariliy higher, and sell some off, he can use THAT CASH to protect his remaining shares.

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[–] viperguy [S] 4 points -4 points (+0|-4) ago 

Tesla tries hard to pretend to be a california company but of course it is not one.

No tech startup is a california company in the last 20 years because of tranny laws like this.

http://ir.tesla.com/node/18896/html

..has in upper left :

Delaware

Its a Delaware corporation, not California.

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[–] draaaak 0 points 1 points (+1|-0) ago 

Just because a corporation is registered in one state doesn't mean that it is not technically/legally based in another. I don't know how this law is going to define all this type of stuff, but where the corporation is registered may not be relevant here. The California government may just care where the company is based and/or licensed.

PS: totally didn't read the article, just read the headline and the comments. So if all of this is explained in the article, cool.