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

[Curt Renz]

I wonder if this is part of the inclusion. Either way, my tendies are multiplying.

Regarding S&P 500 inclusion, a split is essentially a meaningless factor. However, it may increase the likelihood of inclusion in the Dow Jones Industrial Average, in which a high priced stock would unrealistically skew the average.

 

[Quesder]

damn... I am going to sell on news. A split? how does this help SP 500 inclusion?
and... a 5:1 split seems not enough... 1400/5 = 280 still feels too high to many people.

 

[engle]

@#*$(*#**(*(!@**)( my heart almost stopped. Some small/mid cap companies got added but not TSLA
S&P 500® - S&P Dow Jones Indices

Aren't those Midcap and Smallcap index companies? Perhaps they will wait for the rebalancing time to adjust the divisor since TSLA has considerable weight?

 

[woodisgood]

Yeah that sucks
Unless the fund has ultra strict rules to only buy when listed
This is totally intentional from Tesla due to pending S&P listing

Definitely intentional and urgent - Elon said we’d discuss it at shareholder’s meeting. Obviously they felt this would be beneficial NOW and not worth putting off.

 

[Electroman]

What we really don't know yet is the real price. Lucid is saying, starts at $60k and tops out just over $100k

"Lucid CEO Peter Rawlinson, who led development of the Model S while working for Elon Musk, has said the Air will outmatch Tesla's sedan in terms of interior luxury, dash from 0 to 60 mph in 2.5 seconds, and start at more than $100,000."

Lucid Motors' $100,000 luxury sedan is now 'the world's longest range electric vehicle,' smashing the record set by Tesla's Model S

 

[willow_hiller]

Are you familiar with this language? I was not expecting the "dividend" part. In a traditional split option holders would receive 5x as many options, they would all be valued at 1/5 of current, to be net neutral. Is this a traditional split?

I'm wondering this as well. It could be a stock dividend, legally: Stock Splits And Stock Dividends - principlesofaccounting.com

Sounds like the accounting is completely different.

 

[Christine69420]

Count me in as a monthly-ish buyer again from the end of the month.

 

[Sanny]

So the whole numerology of my nice round number of shares is screwed now and I need to scramble to get to a new nice and round number.

 

[M|S|M MYP]

Seems possible, but IMO not likely. The most expensive stocks I see on the DOW currently are Boeing at 345.02 and United Health at 303.98


View attachment 575102

BA @ $345.02....was this last year's chart?

 

[MP3Mike]

So what goes on between Aug 21-28? It sounds like shares trade at current prices but you don't get the extra 4?

Yeah, the way that sounds I can sell my shares 8/22, but then on 8/28 they will give me four for each one I had, and the person that bought mine on 8/22 will still only have one? So the price will plummet on 8/21, or 8/22?

 

[JusRelax]

BA @ $345.02....was this last year's chart?

Good question -- I have no idea, I took it from this page: DJIA - Dow Jones Industrial Average - CNNMoney

EDIT: Which is now oddly not showing the DOW 30 at the bottom anymore at all.

 

[TheTalkingMule]

I don't know about all you millionaires, but I'll now be buying a bunch of LEAPs on the split if SP stays flat or goes down. Probably a LOT of people in the same boat. That should make the MM at least have something else to worry about and hedge.

 

[ninpb]

So just waiting on ARK to follow up and say golden goose price is still 15k regardless of split.

 

[M|S|M MYP]

All....5:1 split is exciting....but can we get back to the Lucid AIR Tesla Killer now?? $TSLA was so oversold for the past 3 trading days...the split will happen prior to battery day which should cause some good volume buying, S&P potential announcement, Q3 record breaking numbers....as the song goes..."Damn...it feels good to be a gangster ($TSLA owner)

Congrats to us all

 

[woodisgood]

At least we have something to discuss now.

Nobody wants to keep talking about Lucid?

 

[Gwgan]

If an investor is short a dividend-paying stock on record date are they entitled to the dividend?

 

[Cherry Wine]

I think what @elasalle meant is that the fees to transact on TSLA options just got 5x more expensive.

The one time when having a meme brokerage is worthwhile!

 

[JusRelax]

Would the SEC have any ability to do anything if Elon just retweeted his "Taking Tesla Private" tweet? LOL

 

[Mike Smith]

Are you familiar with this language? I was not expecting the "dividend" part. In a traditional split option holders would receive 5x as many options, they would all be valued at 1/5 of current, to be net neutral. Is this a traditional split?

I'm saying that if you want to buy say a 2022 June leap at 20% above current market price, it would now cost 1/5th as much. Leaps are much more affordable now - a leap like that would have cost 10s of thousands of dollars before. This could be a bit of a negative for the SP since it will allow more people to buy leaps instead of shares on margin.

 

[Unpilot]

If an investor is short a dividend-paying stock on record date are they entitled to the dividend?

So short burn of the century?