Oh, obviously they'd be borrowing a bunch of TSLA shares to vote them. But they'd then be short-selling SCTY in an attempt to profit off the merger failing. That's one scenario.
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Gerardf
Active Member
Or, it is the same that someone here thought was happening last week with TSLA on low volumes.
INSERT : that was this post. https://teslamotorsclub.com/tmc/posts/1708367/
- short order
- At lower price, buy shares in small lots. Profit
- short order.
... rinse & repeat...
And maybe in the end doing a big short order hoping to profit big in case the deal breaks and SCTY falls.
The amount of garbage articles on Yahoo Finance is mind blowing. First, they have to go half way around the world to find a fatality in a Tesla and report on it, when you can find Mercedes fatalities probably everyday in every major city in America. Second, they all say the car burst into flames, when it clearly did NOT, when you look at all the photos. There are a few cells that ended up on the road that burned, but the car did not. Also, it must have been one hell of an impact to break the battery pack in a Tesla. An ICE vehicle probably would have really burst into flames and burned down half the forest....
stealthology
Member
That makes no sense at all. How would selling shares stop the merger?!? The only way to stop the merger right now is having enough shares to make the NO vote a majority. What would make sense is that those who are against the merger are selling their shares.
EDIT : saw your later post explaining shorting SCTY, buying TSLA. But noone is buying TSLA either. In fact it's on a mostly downwards trajectory as well.
*Sigh*
My paranoid theory -- and I'd lose a lot of money if this happened -- is that some person might be borrowing huge blocks of TSLA in order to vote no to kill the merger, while short-selling SCTY in order to profit from the failure of the merger.
racer26
Active Member
You can't borrow shares to vote them, outside of a very specific set of circumstances. If you want to vote them, you have to be the owner of record on the record date.
What shorts do, is borrow shares, immediately sell them (never being the owner of record) on the open market, and then later return those shares to the owner.
Paranoid indeed
TSLA would have gone up a lot if this were true. Moreover, Institutional investor holdings of TSLA far exceed all the retail investor holdings.
Who would be lending such huge amount TSLA shares?
I think @schonelucht is right: TSLA motors investors are checking (if you note decline started ofter FTC approval on the 24th) out plus others think that offering will be lower than the last one - which happened at 215 - therefore see little upside potential and increased risk from Q3 and merger short term.
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This stock is just hopeless, cannot hold up on its gains even one day. Down trend continues!
Only longs get to vote. It makes no sense for shorts to go long long enough to tank the vote, since they'll miss their profit while doing it. For them, better to sow FUD by going even further short.
anticitizen13.7
Not posting at TMC after 9/17/2018
Your risk tolerance is probably too low to be holding any shares in TSLA. This isn't a stock for the average investor. Buy index mutual funds and you will be much less stressed.
Some positive news - Tesla secured $300mln in funding for direct leases.
Tesla Motors - Current Report
"Due to the liquidity available under the Warehouse Agreement, Tesla’s cash requirements for its direct leasing program are significantly reduced. As a result, there would be a corresponding reduction in both the amount of funds that Tesla may raise from the public market, as well as the amount of dilution to Tesla’s existing stockholders from such fundraising activities."
Tesla Motors - Current Report
"Due to the liquidity available under the Warehouse Agreement, Tesla’s cash requirements for its direct leasing program are significantly reduced. As a result, there would be a corresponding reduction in both the amount of funds that Tesla may raise from the public market, as well as the amount of dilution to Tesla’s existing stockholders from such fundraising activities."
At about $100K per car, this funding should be enough for direct leasing around 3,000 cars.
If you read the article, you will realize that you are wrong. The author has the sequence of events correct.
You read too much into the headline. He delayed that blog post, he later attacked Wall Street. The "instead" refers to him attacking instead of finishing off the delayed blog post.
By the way, is the weekend over yet?
Is there a blog post or have there been other posts/tweets/leaked emails that attack Wall Street?
Edit by Moderator: I don't understand the implication of the last sentence. I have been critical of the WSJ as have others. Joe Nocera, now a NYT op ed writer and long a very successful Wall Street Journal reporter, claims his friends, the Bancroft family, regrets their decision to sell the Journal to Rupert Murdoch who despite promises has diluted the accuracy and fairness of business reporting. The Journal's editorials, on the other hand, have always been off the wall of any street, but one can't criticize those who buy ink by the barrel.
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Actually i think a bit promising that it *mostly* held through all the driver dies in tesla fire? Death by AP? FUD headlines today.
I think this TSLA+SCTY merger really depends on institutional investors, they hold ~65% of all the outstanding shares. Given Musk recused his ~23% of all the shares from voting. It comes down to how the institutional investors will vote. And it has been awfully quite on their sides as well, FMR llc, holding ~11%, has not disclosed/hinted how they will vote, I think if FMR llc OKs this merger, there is a very high likelihood this will go through.
I think you really need to hold TSLA long term to make profits ... TSLA reminds me of Amazon, Google which you need to hold for 5+ years to see the company grow and your profit rising slowly and hopefully surely
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