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Short-Term TSLA Price Movements - 2013

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I get home and look at the ticker and WTF?!! Volume was through the roof today. :eek:

What is going to happen tomorrow....???

I have no clue. I devoted several hours of research today to trying to get a feel for what Elon has planned. Nobody knows, and I have very little confidence in my own guesses.

For what it's worth, I think Elon might be taking the company private. He'd be in a lot of trouble for trying that because of his non-public tweet last week, and this sudden, atypical pre-release of quarterly data and the now very official media advisory for investors and the press feels like a legal effort to walk back liability before Elon actually acts. Haven't heard back from any lawyers as to whether that theory holds any water, which is only one of the reasons I have little confidence in it.

But it feels sorta right, and it would apply whether he takes the company entirely private or was somehow engineering a multi-hundred million dollar capital injection. Merely exercising his options for that purpose doesn't seem to give Tesla enough capital to do anything special, and suffers from the fact that it would make Elon substantially richer, which seems self serving in the context of "putting my money where my mouth is."

If he is going to inject capital into Tesla and increase his ownership share, why not just go big and take it private? He has mentioned a desire for putting Tesla into a holding company with SpaceX so he can move resources back and forth. Tesla probably needs $400-$700m to develop GenIII, and Elon is getting far enough up the billionaire ladder that he might just feel more comfortable writing a check than having to go to Goldman Sachs for it.

SpaceX just got valued at $6 billion a few weeks ago and only looks to get more valuable. Solar City is up big along with Tesla. That puts Elon's net worth somewhere north of $5 billion.

American Express would probably just let Elon put Tesla on his card at this point
 
I have no clue. I devoted several hours of research today to trying to get a feel for what Elon has planned. Nobody knows, and I have very little confidence in my own guesses.

For what it's worth, I think Elon might be taking the company private. He'd be in a lot of trouble for trying that because of his non-public tweet last week, and this sudden, atypical pre-release of quarterly data and the now very official media advisory for investors and the press feels like a legal effort to walk back liability before Elon actually acts. Haven't heard back from any lawyers as to whether that theory holds any water, which is only one of the reasons I have little confidence in it.

But it feels sorta right, and it would apply whether he takes the company entirely private or was somehow engineering a multi-hundred million dollar capital injection. Merely exercising his options for that purpose doesn't seem to give Tesla enough capital to do anything special, and suffers from the fact that it would make Elon substantially richer, which seems self serving in the context of "putting my money where my mouth is."

If he is going to inject capital into Tesla and increase his ownership share, why not just go big and take it private? He has mentioned a desire for putting Tesla into a holding company with SpaceX so he can move resources back and forth. Tesla probably needs $400-$700m to develop GenIII, and Elon is getting far enough up the billionaire ladder that he might just feel more comfortable writing a check than having to go to Goldman Sachs for it.

SpaceX just got valued at $6 billion a few weeks ago and only looks to get more valuable. Solar City is up big along with Tesla. That puts Elon's net worth somewhere north of $5 billion.

American Express would probably just let Elon put Tesla on his card at this point

I don't know how a company going private affects small investors. Wouldn't going private drive the shareprice through the roof? He would have to start to buy out every public shareholder and that would put huge pressure on the price.
 
I have no clue. I devoted several hours of research today to trying to get a feel for what Elon has planned. Nobody knows, and I have very little confidence in my own guesses.

For what it's worth, I think Elon might be taking the company private. ...

What???? Why on earth would anybody try to take a company private when it is severely capital constrained and that would make it harder to raise more money? To realize the potential from its first-mover advantage it needs to grow v v fast and issue a lot of public stock to do so. Or were you thinking a take-over by Toyota or somebody? There's a very good chance that Tesla will form a strategic partnership with Toyota or somebody to help get Gen 3 out sooner.
 
I see shades of Q1. That report was almost all positive news, a company on the move, a plan being followed. But because it was not 100%, Tesla "misses" "disappoints" etc. & after a long run up, the stock tanks. I'd like to think that the "Exciting Announcement" is so rockin' awesome that buying in becomes the only reasonable course of action. After today, however, what could take us higher?
anything less than the pinnacle of brilliance will, I think, be seen as an excuse to unload (again) & look for a bottom (again). New, higher bottom now, perhaps.

btw, I'll just be holding (again)
 
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I'm betting a partnership with Toyota. Akio Toyoda is making some serious moves in his company and is a visionary that gets things done (although he isn't a rocket scientist like Elon) he sees opportunity and takes it. They partnered with BMW recently to share technology and co develop. They partnered with Subaru to make the FR-S. it's quite possible that they might make a big investment in Tesla again.
 
There is a very LARGE cost to have a public company, reporting and SEC requirements, the legal team needed etc.
He might feel they could save a significant amount of money if Tesla was taken private. It happens ALL the time.
He might also have a partnership deal with a major auto manufacturer, and to complete it, they might need to take it private.
I would not be surprised by this, but the timing might not be right, we'll see tommorow.

My other theory is he is going to use his shares about to vest to get a larger ownership position in the company, but $300 million plus what he already owns is probably not enough to get a majority, but if he combines this with a major auto mfr deal, it might be a go.
 
There is a very LARGE cost to have a public company, reporting and SEC requirements, the legal team needed etc.
He might feel they could save a significant amount of money if Tesla was taken private. It happens ALL the time.
He might also have a partnership deal with a major auto manufacturer, and to complete it, they might need to take it private.
I would not be surprised by this, but the timing might not be right, we'll see tommorow.

My other theory is he is going to use his shares about to vest to get a larger ownership position in the company, but $300 million plus what he already owns is probably not enough to get a majority, but if he combines this with a major auto mfr deal, it might be a go.
I'm 100% sure that he won't take the company private. It just doesn't make sense, and he doesn't have enough money. Plus he has said he doesn't wanna sell the company so he isn't going to let another manufacturer get a majority holding either.

I think its going to be a secondary stock offering to raise capital, and a faster supercharger expansion. Maybe, if we are lucky, he will pay a significant chunk of the DOE loan for TSLA (but I highly doubt this is it either). Thats probably the big news.
 
I'm betting a partnership with Toyota. Akio Toyoda is making some serious moves in his company and is a visionary that gets things done (although he isn't a rocket scientist like Elon) he sees opportunity and takes it. They partnered with BMW recently to share technology and co develop. They partnered with Subaru to make the FR-S. it's quite possible that they might make a big investment in Tesla again.
Two problems with this, I don't see how this takes a large chunk of money from Elon, and if Toyota starts pushing real EV's it cuts deeply into their established hybrid line. Toyota keeps talking about EV's in the distant future when battery technology is better.
 
With the new leasing/sales option, tsla is going to pop tomorrow!


Tesla Unveils Revolutionary New Finance Product
Tesla Unveils Revolutionary New Finance Product | Press Releases | Tesla Motors

True Cost of Ownership
True Cost of Ownership | Tesla Motors

Resale Value Guarantee
http://www.teslamotors.com/sites/default/files/pdfs/tesla-resale-value-guarantee.pdf


"We guarantee that your vehicle will have a resale value after 3 years of at least 43% of the original purchase price(exclusiveof taxes, fees and accessories) of your vehicle."
 
It's down after hours though I do hope it does pop. This really is a revolutionary payment plan.

With the new leasing/sales option, tsla is going to pop tomorrow!


Tesla Unveils Revolutionary New Finance Product
Tesla Unveils Revolutionary New Finance Product | Press Releases | Tesla Motors

True Cost of Ownership
True Cost of Ownership | Tesla Motors

Resale Value Guarantee
http://www.teslamotors.com/sites/default/files/pdfs/tesla-resale-value-guarantee.pdf


"We guarantee that your vehicle will have a resale value after 3 years of at least 43% of the original purchase price(exclusiveof taxes, fees and accessories) of your vehicle."
 
It's down after hours though I do hope it does pop. This really is a revolutionary payment plan.

This is much ado about nothing. The stock will go down tomorrow. All this is a a 5 1/2 year loan at 2.95% with an option to terminate and sell back to Tesla at a rate that is sure to be below market.

Now for the plus side... from a marketing point of view this will highlight the true affordability of a Tesla and will hopefully spur some additional reservations, however I do not see them going through the roof!
 
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