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2017 Investor Roundtable: TSLA Market Action

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I certainly appreciate the emotional aspect of the deal, but how could he have possibly expected Tesla to serve its competitors?

yeah, hopefully they were honest about their intentions during the purchase. It would be all too easy to say "of course, you can continue working with your existing clients" and they later say "ok, all hands on deck for our most critical project". I suspect that is what actually happened.
 
yeah, hopefully they were honest about their intentions during the purchase. It would be all too easy to say "of course, you can continue working with your existing clients" and they later say "ok, all hands on deck for our most critical project". I suspect that is what actually happened.

I highly doubt that. These transaction agreements are negotiated for months and involves several layers of senior management on each side, dozens of financial, tax and legal advisors. These people are there to make sure there is absolutely zero room for ambiguity by the end. As an M&A advisor, I have seen as many as 100+ versions of the same agreement, even on smaller deals, and this is not abnormal.

My best guess is that the founder did not want to accept a lower price to get a binding clause in there to protect his legacy customers, and now is pulling a public stunt to not look like the bad guy to his legacy customers.
 
The thing is that when I did previous analysis. as I mentioned, the availability data suggested 0.5x of shorting that was reported by L3 Partners. So it looks like there is no *consistent* good correlation. I agree that data is useful, but it seems that interpreting it is more of an art, than science.
It sounds impossible to do. The fidelity data is a black box.
I am actually thinking whether we can organize a group subscription to the L3 Partners short interest data. I can see it as a worthwhile effort if they provide data on *daily* changes in short interest. I understand that their conclusions are also could not be 100% accurate, but combining this data with Fidelity availability data might give us enough of an insight. My main interest is being able to pick up consistent covering activity (rolling squeeze) and be able to determine when it is falling off to try to pick good exit point for short to medium term trading.
Great idea! If we cannot afford it on a constant daily basis maybe he would alert us to times when we should subscribe, or maybe we could subscribe for once or twice a week, and switch to daily mode when it gets "interesting". Or maybe we can figure out when the rolling squeeze starts on our own and start paying him at that time. Knowing the costs and having a plan in place would be a huge advantage if it happens.
I have no Idea, and do not know what they actually offer. I would imagine it could be pricey. I will try to use twitter PM to see if I get more information from Ihor, but my hunch is that we need at least 5-10 participants to make it reasonable.

Let's see how many people are showing interest in this over the next day or two, and then I can contact Ihor Dusaniwsky to see what subscription options we have.

I'm definitely very interested.
Count me in if we can pay mostly when it's useful! Thanks for thinking about this, and taking the initiative to start the process.
I will try to do more data comparison over weekend...
If Igor has reliable figures I think that is a waste of your time. I'd wait until you know the cost, and the level of support on the forum.
 
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I certainly appreciate the emotional aspect of the deal, but how could he have possibly expected Tesla to serve its competitors?

If his legacy customers were that important to him, he could have not sold the company, or at least negotiated a binding clause in the transaction agreement.

I believe the idea that the employees feel nationalistic need to support BMW and Daimler is a red haring and I think the real concerns about cutting of future contracts, because are completing existing contracts, is that some of the work they do is specialized and for industries outside of the automotive/hardware industry like Pharma companies. Those folks probably do have some real fears about their job security. I think the other employees find themselves in a magical place where they are not supporting these industries but revolutionizing them and really taking an ownership in what they are working on. I have worked for myself and at startups and I can tell you that the successes in those situations are much more fulfilling when you have more of a stake. Also, Tesla is clearly becoming more like Grohmann then they are becoming like BMW/Daimler, where the factories are an order of magnitude more complex and more important then the products they make. That has to be extremely exiting for the employees of Tesla Grohmann Engineering, as long as they are not highly specialized in automation for drug manufacturing.

Another thing that bugs me about this whole thing is the fact they suddenly where making 30% less then the rest of industry. They didnt have an issue with it before Tesla purchased them. I know it is because they are being purchased by what is supposedly an auto manufacturer, though we all know they are actually a energy or tech company first. Heck, maybe they are actually under paid by 50% based on what programmers make in Silicon Valley.
 
I think the only realistic theory as to why the stock is popping is that the algo bots are scrubbing old TMC threads looking for clues on the upcoming earnings and have stumbled on TT007's April 2 post reading "Pump up the Jam" and have gone crazy hitting the buy button. It's only science...

I must be just the right age for that song to be a nostalgic memory of my youth, but that post has been cracking me up ever since. It has entered the language of our home. When my wife asks how the market is today, if it is up, my reply is, "we are pumping up the jam today!!"
 
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I think the only realistic theory as to why the stock is popping is that the algo bots are scrubbing old TMC threads looking for clues on the upcoming earnings and have stumbled on TT007's April 2 post reading "Pump up the Jam" and have gone crazy hitting the buy button. It's only science...

I must be just the right age for that song to be a nostalgic memory of my youth, but that post has been cracking me up ever since. It has entered the language of our home. When my wife asks how the market is today, if it us up my reply is, "we are pumping up the jam today!!"
Lol
 
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