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In the event of a temporary short squeeze, what are your thoughts on selling some of your position during the peak? Will a re-buy in at (420?) be possible? Is it worth the gamble? Perhaps we will be able to reinvest at the 6-month liquidation events once private?

Trying my best here to strategize, I am not real liquid right now and can't add much to my meager position but if the opportunity arises can I buy additional shares (after or before) Privatization and what might those buy-in limits be?
 
In the event of a temporary short squeeze, what are your thoughts on selling some of your position during the peak? Will a re-buy in at (420?) be possible? Is it worth the gamble? Perhaps we will be able to reinvest at the 6-month liquidation events once private?

Trying my best here to strategize, I am not real liquid right now and can't add much to my meager position but if the opportunity arises can I buy additional shares (after or before) Privatization and what might those buy-in limits be?

The only answer you can trust, today, is "nobody knows". There's no actual proposal with details.

That being said, I would lean heavily towards not trying to sell at some peak with an expectation of buying back in, if what you really want is to be part of the private company (this happens to be where I want to end up). If there's a squeeze, that specifically means there aren't shares to be bought, so the people that HAVE to buy are now offering more and more money to find people that will sell. In theory, there might be a sliver of time where all the people that HAVE to buy do so at higher prices, then the price falls back down to $420, AND THEN you can still find new seller that didn't / wouldn't sell at the higher prices that are now willing to sell at $420.

It COULD happen. I'm thinking, very unlikely :)


A good reason to sell during a squeeze is to raise cash now that you want / need. But if this is a holding where you're thinking 10+ years investment scale, then a spike from 400 to 800 and back down again, is just a speed bump hardly worth slowing down for.


A different but related idea - if your investment horizon is long (many years, decade, +), then in some ways, Tesla is hard as an investment. It's so volatile, it's hard not to get caught up in day and short term trading all that volatility. To be a long term buy and hold for Tesla, you need a clear idea of your long term investment thesis, do your daily monitoring in terms of that long term investment thesis, and realize that whether today's stock price starts with a 2, 3, or 4 - it's all just noise. (At least for my investment thesis, until the 2/3/4 has 3 digits after it, it's still just noise). $50 up today and $50 down tomorrow - more noise.

It can be hard to remain convinced that a 10-20% move in one day is still just noise :)


(All just my opinion, but I'm long in shares with a 10+ year investment horizon after holding for 5 years so far, and also with OTM '20 calls that likely became worthless with the go-private announcement, but I'm holding them for now because there STILL isn't an actual deal / offer, with actual details, on the table)
 
Thank you for that, adiggs, that's very helpful. I am planning to hold about 10 years+. I purchased most shares @ lower $200's and hold only TSLA-directed IRA since 2014. I have been considering rolling the IRA into a ROTH IRA due to expected gains in the future. I am hoping that I won't be forced to do that until tax year 2019. Thinking I may liquidate a few shares outside the IRA if a squeeze comes due to a planned wedding late this year but perhaps that's not going to be a good idea unless the squeeze results in astronomical gains.
Appreciate your feedback! Too few posts to enable "like" feature on the forum, sorry.
 
@Daniellane If you do call them, please post your answer here. I suspect the answer will be “we don’t know because Tesla hasn’t explained how it will work yet.” But if they do permit private shares, or public, delisted shares - that would be good to know. I’m pretty sure once details are released, we’ll all scramble to work out if our current brokers allow it, if so how, what are implications.
And hopefully, this thread will be a useful resource for us to crowdsource our “Plan B” approaches.
 
@Daniellane If you do call them, please post your answer here. I suspect the answer will be “we don’t know because Tesla hasn’t explained how it will work yet.” But if they do permit private shares, or public, delisted shares - that would be good to know. I’m pretty sure once details are released, we’ll all scramble to work out if our current brokers allow it, if so how, what are implications.
And hopefully, this thread will be a useful resource for us to crowdsource our “Plan B” approaches.
Called Vanguard. The representative contacted their “Corporate Actions Department”
Their response (slightly paraphrased)
They are aware that there is a stated intention for Tesla shareholders to retain ownership in a private Tesla but do not currently have a solution because they do not have any details from Tesla.

I do recall reading somewhere that Vanguard amongst other large institutional shareholders could potentially create a fund to hold private shares of Tesla similar to a Fidelity Fund for SpaceX.
 
Found a few mentions of Vanguard online that don’t bode well for the prospects of them allowing retention of private Tesla shares...

Public or Private, Tesla Fans Are Along for the Ride

Vanguard Group, which is Tesla’s sixth-largest holder, owns shares mostly through index funds, which would likely have to sell. “Our active funds are technically able to invest in private companies, but it is rare for them to do so,” a spokesman said.

Keeping Tesla shares may not be an option for some big funds


One pool that would likely not be Musk's allies in the effort are big passive vehicles like the Vanguard Total Stock Market Index Fund (VSMPX.O).

The fund held about 2 percent of Tesla's shares at June 30. The fund's holdings are based on an index tracking shares on the New York Stock Exchange and Nasdaq, according to its prospectus.

Vanguard spokeswoman Carolyn Wegemann declined to comment on Tesla but said by email, "As private companies are not included in indexes, any shares held in an index fund when a company goes private would likely be sold/tendered."

A factor that could work in Musk's favor is that more of his top fund investors are active stockpickers. Active funds would generally have more leeway to continue to own Tesla after a go-private transaction.
 
Soon we may be able to convert our Self Directed IRAs to a “Fully Self Directing IRA” which uses an AI Neural Net to make all buy & sell decisions. (Akin to a “pick-six” lotto ticket)

Schwab Intelligent Portfolios – Online Robo Advisor

Schwab Intelligent Portfolio is a thing and it's been around awhile now. It's literally a computer algorithm that invests in a mix of ETF's based on how aggressive you want it to be.
 
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