Tesla, TSLA & the Investment World: the Perpetual Investors' Roundtable

[betstarship]

Why not sell? Enjoy life, money isn't going to matter anymore

 

[Cosmacelf]

So this is the Motley Fool's (yeah, I know) guess as to why TSLA is down today:

"Tesla ended the quarter with more than $18 billion in cash, but automobile manufacturing is capital intensive and requires automakers to keep billions in reserve at any time. If Tesla is going to build new factories [to hit 20M vehicles in 2030], it is going to have to raise more cash.

At least some of that is likely to come from debt financing, but it does seem inevitable that at some point Tesla will tap equity markets again to fund its expansion plans. Secondary offerings, unlike stock splits, do impact the total ownership stake of a current investor and could be a reason for the stock's negative reaction to the meeting ...

If there was any doubt before, Tesla has reconfirmed it is focused on growth. That comes at a price, and investors are weighing the cost in Friday trading."

So we're back to the dilution FUD again. Seems MF hasn't noticed that Tesla is now a cash generating machine? Even with two just built nascent factories? And that, yes, debt is absolutely a viable option, regardless of what the rating agencies say (Tesla bonds on the open market had low interest rates). And finally, Elon actually said the opposite in that Tesla might be doing share buybacks in the future. Sheesh!

Anyhoo - buying opportunity!

 

[Singuy]

So this is the Motley Fool's (yeah, I know) guess as to why TSLA is down today:

"Tesla ended the quarter with more than $18 billion in cash, but automobile manufacturing is capital intensive and requires automakers to keep billions in reserve at any time. If Tesla is going to build new factories [to hit 20M vehicles in 2030], it is going to have to raise more cash.

At least some of that is likely to come from debt financing, but it does seem inevitable that at some point Tesla will tap equity markets again to fund its expansion plans. Secondary offerings, unlike stock splits, do impact the total ownership stake of a current investor and could be a reason for the stock's negative reaction to the meeting ...

If there was any doubt before, Tesla has reconfirmed it is focused on growth. That comes at a price, and investors are weighing the cost in Friday trading."

So we're back to the dilution FUD again. Seems MF hasn't noticed that Tesla is now a cash generating machine? Even with two just built nascent factories? And that, yes, debt is absolutely a viable option, regardless of what the rating agencies say (Tesla bonds on the open market had low interest rates). And finally, Elon actually said the opposite in that Tesla might be doing share buybacks in the future. Sheesh!

Anyhoo - buying opportunity!

LoL, yeah Tesla needs to raise cash if they want to build 20M vehicles tomorrow. Why are people even paid to write such trash analysis?

 

[Nocturnal]

Nah, the macro dip began precisely when the Jobs Report was released at 08:30 ET

View attachment 837146

And shortzes and hedgies jumped on the chance to pound TSLA below Max Pain. Done and dusted, now off to the Hamptons for (yet) another weekend of coke and hoes...

Not /s.

Hey so question. Is it too late for me to switch teams?

Jk I’m headed to my lake house and assorted water toys those guys bought me.

 

[henchman24]

So this is the Motley Fool's (yeah, I know) guess as to why TSLA is down today:

"Tesla ended the quarter with more than $18 billion in cash, but automobile manufacturing is capital intensive and requires automakers to keep billions in reserve at any time. If Tesla is going to build new factories [to hit 20M vehicles in 2030], it is going to have to raise more cash.

At least some of that is likely to come from debt financing, but it does seem inevitable that at some point Tesla will tap equity markets again to fund its expansion plans. Secondary offerings, unlike stock splits, do impact the total ownership stake of a current investor and could be a reason for the stock's negative reaction to the meeting ...

If there was any doubt before, Tesla has reconfirmed it is focused on growth. That comes at a price, and investors are weighing the cost in Friday trading."

So we're back to the dilution FUD again. Seems MF hasn't noticed that Tesla is now a cash generating machine? Even with two just built nascent factories? And that, yes, debt is absolutely a viable option, regardless of what the rating agencies say (Tesla bonds on the open market had low interest rates). And finally, Elon actually said the opposite in that Tesla might be doing share buybacks in the future. Sheesh!

Anyhoo - buying opportunity!

Frankly pretty hilarious this is being brought up when Elon stated buybacks would be on the table eventually... Tesla's FCF is so good they won't have to raise.

This def smells like some big holder selling...all other mega caps down >2% and here we are down <7%

Oh god... imagine the uproar if Elon is selling again!

 

[elasalle]

So this is the Motley Fool's (yeah, I know) guess as to why TSLA is down today:

"Tesla ended the quarter with more than $18 billion in cash, but automobile manufacturing is capital intensive and requires automakers to keep billions in reserve at any time. If Tesla is going to build new factories [to hit 20M vehicles in 2030], it is going to have to raise more cash.

At least some of that is likely to come from debt financing, but it does seem inevitable that at some point Tesla will tap equity markets again to fund its expansion plans. Secondary offerings, unlike stock splits, do impact the total ownership stake of a current investor and could be a reason for the stock's negative reaction to the meeting ...

If there was any doubt before, Tesla has reconfirmed it is focused on growth. That comes at a price, and investors are weighing the cost in Friday trading."

So we're back to the dilution FUD again. Seems MF hasn't noticed that Tesla is now a cash generating machine? Even with two just built nascent factories? And that, yes, debt is absolutely a viable option, regardless of what the rating agencies say (Tesla bonds on the open market had low interest rates). And finally, Elon actually said the opposite in that Tesla might be doing share buybacks in the future. Sheesh!

Anyhoo - buying opportunity!

Somewhere in MM/Hedgie land ....

12 GF at $2B each. ..... $24B
Cash in hand................. $18B

Difference/short ......... ($6B) SELL SELL SELL

 

[bkp_duke]

So this is the Motley Fool's (yeah, I know) guess as to why TSLA is down today:

"Tesla ended the quarter with more than $18 billion in cash, but automobile manufacturing is capital intensive and requires automakers to keep billions in reserve at any time. If Tesla is going to build new factories [to hit 20M vehicles in 2030], it is going to have to raise more cash.

At least some of that is likely to come from debt financing, but it does seem inevitable that at some point Tesla will tap equity markets again to fund its expansion plans. Secondary offerings, unlike stock splits, do impact the total ownership stake of a current investor and could be a reason for the stock's negative reaction to the meeting ...

If there was any doubt before, Tesla has reconfirmed it is focused on growth. That comes at a price, and investors are weighing the cost in Friday trading."

So we're back to the dilution FUD again. Seems MF hasn't noticed that Tesla is now a cash generating machine? Even with two just built nascent factories? And that, yes, debt is absolutely a viable option, regardless of what the rating agencies say (Tesla bonds on the open market had low interest rates). And finally, Elon actually said the opposite in that Tesla might be doing share buybacks in the future. Sheesh!

Anyhoo - buying opportunity!

Sounds like TSLAQ fud to me.

When you have this much cash on hand, and have a money printing machine, you don't go to the equity or debt markets.

 

[ZachF]

lol, wth…

 

[Boomer19]

LoL, yeah Tesla needs to raise cash if they want to build 20M vehicles tomorrow. Why are people even paid to write such trash analysis?

well they are a motley bunch of fools

 

[Mengy]

I must admit, today's price movement is NOT the reaction I expected after last night's shareholder meeting. Seems very uncoupled from the rest of the market today, in a negative way.

 

[Right_Said_Fred]

Careful there, the last time I suggested that a sharp sudden move down without any obvious reason why was caused by Elon selling shares, I was threatened with a ban.

This isn't me telling a joke, I know you're a mod.

I cannot imagine a mod threatening you with a ban for suggesting that. It sure wasn’t me.

I find today’s trajectory suspicious, as the drop is strong, steady and unrelated to the indices. We’ve seen that before.

 

[StarFoxisDown!]

Frankly pretty hilarious this is being brought up when Elon stated buybacks would be on the table eventually... Tesla's FCF is so good they won't have to raise.

Oh god... imagine the uproar if Elon is selling again!

Hedge funds/Shorts sure are trying to make it appear like Elon is selling. The trading action look very similar to the days when Elon has sold in the past. Just sheer constant selling pressure, non-stop and comletely detached from the macros.

I very much doubt it's Elon selling, but if he was, I'd actually be pretty annoyed and pissed. Dumping shares the day after Shareholders meeting is in very poor taste.

 

[elasalle]

why would EM sell before a split.
TWTR court date is sometime in Oct ... by then

.split
.AI day
.Q3 delivery numbers
..each one a +ve catalyst.

 

[Artful Dodger]

IDK... looking at Put Volume, focus seems to drop it under the 900 mark today. And 50,000 seems like a lot.
Desperate times for those on the dark side - wishing them all the best.

View attachment 837053

Lol, now wedgies are hunting those few puts at 850. Glorious day to be a **** ******.

 

[henchman24]

why would EM sell before a split.
TWTR court date is sometime in Oct ... by then

.split
.AI day
.Q3 delivery numbers
..each one a +ve catalyst.

Insiders only have 20 trading days after earnings to sell stock unless in a specific plan, if Elon is selling after this quarter, he won't get any of those dates in time. Today would be as good of day as any.

I also really doubt AI day will be a positive catalyst. Tesla events are rarely events that lead to a positive action in the stock... one that will have somewhat of a focus on a robot that Wall Street is likely to hate, that's a negative catalyst in the short term.

 

[henchman24]

Hedge funds/Shorts sure are trying to make it appear like Elon is selling. The trading action look very similar to the days when Elon has sold in the past. Just sheer constant selling pressure, non-stop and comletely detached from the macros.

I very much doubt it's Elon selling, but if he was, I'd actually be pretty annoyed and pissed. Dumping shares the day after Shareholders meeting is in very poor taste.

He really only has until the 17th if he is selling. He'd be criticized regardless.

 

[MP3Mike]

Insiders only have 20 trading days after earnings to sell stock unless in a specific plan, if Elon is selling after this quarter, he won't get any of those dates in time. Today would be as good of day as any.

I'm pretty sure that isn't true. That is a particular companies policy, the problem is that company isn't Tesla.

 

[henchman24]

I'm pretty sure that isn't true. That is a particular companies policy, the problem is that company isn't Tesla.

That's not a company rule... it is an SEC rule.

 

[StarFoxisDown!]

He really only has until the 17th if he is selling. He'd be criticized regardless.

I don't think that's actually true about his window for selling.

And regardless, to dump shares the day after the shareholders meeting is incredibly bad optics and in very poor taste. Even doing on Monday is better than doing in the very day after the shareholders meeting.

 

[GOVA]

Meh, this is expected behavior after any good news Tesla day. I am not terribly surprised.