what do you think of Musk’s latest IPO offering?
What Initial Public Offering would that be? A link to a story would be useful. I googled but came up dry.
What IPO? An IPO is an “Initial Public Offering” of equity. Tesla IPO’d in 2010. The nearest future IPO that could involve Musk is supposedly rumored to be a Starlink IPO in maybe a year or two. But given Musk’s record of promises vs. delivery timing (Full self driving, anyone?), that timeline could be optimistic.
It does sound like, despite Musk’s denial, that xAI may be doing a $20B round of funding that will include both debt ($12.5B) and equity ($7.5B), set up with a special financing vehicle. But that’s a private (not public) placement. Typically, that would mean that most retail investors would not be able to participate. However, given that 401(k)s are now allowed to offer private investments, there may be a possibility, if a 401(k) has taken advantage of that rule, and the 401(k) administrator has chosen an investment vehicle that will invest in this particular private placement, some retail investors could participate. So if your 401(k) is offering this option, you might want to do some research on what the financing vehicle is, and how you would profit (or lose) with this investment. For most everyone else, it’s probably not worth looking into.
AJ
4 Likes
Thank you for the information. Just checking the stuff from things I have been getting on my email from other agents. I didn’t trust what they were saying, like they tried to make me believe this was the cat’s meow…
Sid
Thank you for the response, I didn’t think this was something I should be getting into.
Sid
Musk is negotiating for major new shares to continue to work for the company and focus his efforts on its interest. Those are likely to be stock options that get rewarded to him for meeting profit goals. Could those be the new shares you talk about.
They will dilute earning per share. You can still buy shares on the open market. But as always only if you think the company will prosper.
No, I go the answer to my question already from aj485 via Motley Fool Community.
Thank you
Sid
What latest IPO Offering?
Thank you for the information, I was able to make my decision from your response.
Sid