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The UAE is trying to get *Russia* to stop supporting *Iran*? They're crazy. Will never happen. Every government in their right mind is on the Iran side of that conflict right now, including China and India, and though Putin is crazy, he's not *that* crazy.
Think about what this means geopolitically. California and Scotland are signing treaties (I mean "agreements"). The old national governments are losing relevance. Perhaps the collapse of the USSR was just a teaser for the future?
Highly doubt it. You buy TSLA you are buying EM. There are cheaper alternatives if tencent wanted a EV manufacturer without EM's ideas.
What if you really just wanted to stop EM?
First you ignore him, then you try to short him, then you try to buy him.
jeewee3000
Active Member
Could be cheaper to try to buy him immediately rather than after shorting
A lot of Sovietologists thought so at the time. But the general rule was articulated by Tip O'Neill, Jr. Stalin set up as Commissar for Nationalities the boundaries of the Republics in a classic example of divide and conquer, Ossetia being a great exemplar. Since Gorbachev neglected the "affirmative action" principle of having titular nationality representation at the highest levels of government, Kazakstan the stunning illustration here--and was unable to be as brutal as Stalin--the nationalities problem proved deadly to empire. Gorby's anti-corruption campaign, however nobel, also reinforced rebellion locally. There is a kind of Newton's third law in politics. FiveThirtyEight has an interesting article today about opposition to Trump.
Six Degrees Of Trump Opposition
Don't be thrown off by the title my cherished Trump supporters. Read beyond it. The general analysis is good for measuring the success of any presidency and the author does treat Obama as well, however tangentially, to illustrate. The simple takeaway: don't urinate off too many groups at once.
Edit: Key to the article is determining the salient groups, as with anything.
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Tencent issued a press statement to Bloomberg saying that they were investing in Tesla because they were backers of Elon Musk and Musk's vision. Seriously. Look it up. So yeah, they are definitely a friendly investor!
Thumper
Active Member
FredTMC
Model S VIN #4925
True... and per your earlier question: Yes, I would view a 20% stake in TSLA by Tencent as very bad.
I don't think Elon wants anyone to have change-in-control authority
I certainly don't. And especially not a foreign country/company like China
Gerasimental
Member
Just wanted to let you know you are the only 'technical' contributor that I even bother to read. Everyone else just seems to use post-hoc statistics to make pre-hoc predictions, which seems like nonsense to me. If there were any persistent cross correlations in the positive time axis between backward looking statistics of the stock price and the stock price itself, these would be instantly recognised by very simple programmes and exploited, right?
Otherwise you could draw up a list of statistics based on past stock price, cross correlate all of them with stock price, and call any peak in cross corellation a signal to either buy or sell, but of course so would everyone else so that peak would no longer exist.
Every time I look there's a new ATH. Love it.
Waiting4M3
Active Member
Damn, going back under 303 now, you just had to look, don't you
Generally agree, but just so you know, most companies have the change on control threshold at 30-50%, not 20%. Especially a control freak like Elon - I bet it's set high.
OK, went ahead and checked - it's 50%. So no worries about someone getting too high of a stake - 50% is basically impossible given institutional and Elon ownership. There's also things like proxy fights from an activist investor but those usually go nowhere and the alternative slate of directors is voted on by all shareholders, so not a big chance there. Pro-tip: you can generally get the CIC percentage from their equity incentive plan. In Tesla's case it's section 2(f) of the 2010 plan:
(f) “Change in Control” means the occurrence of any of the following events:
(i) A change in the ownership of the Company which occurs on the date that any one person, or more than one person acting as a group (“Person”), acquires ownership of the stock of the Company that, together with the stock held by such Person, constitutes more than fifty percent (50%) of the total voting power of the stock of the Company; provided, however, that for purposes of this subsection (i), the acquisition of additional stock by any one Person, who is considered to own more than fifty percent (50%) of the total voting power of the stock of the Company will not be considered a Change in Control; or
(ii) A change in the effective control of the Company which occurs on the date that a majority of members of the Board is replaced during any twelve (12) month period by Directors whose appointment or election is not endorsed by a majority of the members of the Board prior to the date of the appointment or election. For purposes of this clause (ii), if any Person is considered to be in effective control of the Company, the acquisition of additional control of the Company by the same Person will not be considered a Change in Control; or
(iii) A change in the ownership of a substantial portion of the Company’s assets which occurs on the date that any Person acquires (or has acquired during the twelve (12) month period ending on the date of the most recent acquisition by such person or persons) assets from the Company that have a total gross fair market value equal to or more than fifty percent (50%) of the total gross fair market value of all of the assets of the Company immediately prior to such acquisition or acquisitions; provided, however, that for purposes of this subsection (iii), the following will not constitute a change in the ownership of a substantial portion of the Company’s assets: (A) a transfer to an entity that is controlled by the Company’s stockholders immediately after the transfer, or (B) a transfer of assets by the Company to: (1) a stockholder of the Company (immediately before the asset transfer) in exchange for or with respect to the Company’s stock, (2) an entity, fifty percent (50%) or more of the total value or voting power of which is owned, directly or indirectly, by the Company, (3) a Person, that owns, directly or indirectly, fifty percent (50%) or more of the total value or voting power of all the outstanding stock of the Company, or (4) an entity, at least fifty percent (50%) of the total value or voting power of which is owned, directly or indirectly, by a Person described in this subsection (iii)(B)(3). For purposes of this subsection (iii), gross fair market value means the value of the assets of the Company, or the value of the assets being disposed of, determined without regard to any liabilities associated with such assets.
For purposes of this Section 2(f), persons will be considered to be acting as a group if they are owners of a corporation that enters into a merger, consolidation, purchase or acquisition of stock, or similar business transaction with the Company.
FredTMC
Model S VIN #4925
Wow. It's set at 50% at tesla. Thanks for looking it up
I still don't want Tencent to have a 20% position. Even 10% makes me nervous
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