Tesla has hedge transactions that prevent dilution (in effect they don't issue new stock when notes are converted, they exercise options to buy stock to give to the people converting).
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Short-Term TSLA Price Movements - 2013
- Thread starter Robert.Boston
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Tesla has hedge transactions that prevent dilution (in effect they don't issue new stock when notes are converted, they exercise options to buy stock to give to the people converting).
callmesam
Member
Can someone explain
Tesla Jumps Above $600 Million Note Conversion Price - Forbes
How the conversion "price" relates to any net benefit to Tesla, other than the share price rise floating all boats?
Will Tesla get a pile of money or is the hedged transaction already paid to them?
Does it take the debt "off the books" thus making TSLA more valuable?
This is the offering. See sections:
CONCURRENT CONVERTIBLE NOTES OFFERING S-18
CONVERTIBLE NOTE HEDGE AND WARRANT TRANSACTIONS S-19
SUBSEQUENT PRIVATE PLACEMENT S-20
http://www.sec.gov/Archives/edgar/data/1318605/000119312513226095/d538782d424b5.htm
"According to a prospectus, Telsa shareholders will have the ability to convert their notes after the quarter ending on September 30 if the stock is greater or equal to 130% of the conversion price for at least 20 trading days in a 30 day period of consecutive trading days."
http://www.thestreet.com/story/11972412/1/tesla-jumps-above-600-million-note-conversion-price.html
Tesla Jumps Above $600 Million Note Conversion Price - Forbes
How the conversion "price" relates to any net benefit to Tesla, other than the share price rise floating all boats?
Will Tesla get a pile of money or is the hedged transaction already paid to them?
Does it take the debt "off the books" thus making TSLA more valuable?
This is the offering. See sections:
CONCURRENT CONVERTIBLE NOTES OFFERING S-18
CONVERTIBLE NOTE HEDGE AND WARRANT TRANSACTIONS S-19
SUBSEQUENT PRIVATE PLACEMENT S-20
http://www.sec.gov/Archives/edgar/data/1318605/000119312513226095/d538782d424b5.htm
"According to a prospectus, Telsa shareholders will have the ability to convert their notes after the quarter ending on September 30 if the stock is greater or equal to 130% of the conversion price for at least 20 trading days in a 30 day period of consecutive trading days."
http://www.thestreet.com/story/11972412/1/tesla-jumps-above-600-million-note-conversion-price.html
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Basically the bonds that Tesla issued can be converted to stock - this increases the supply of shares. The holders of the convertibles can't sell
if it doesn't reach the threshold though so it's not like they can dump all their shares and make the stock go down. Tesla benefits in that they don't
have to pay the bondholders interest anymore so that helps their cash flow. If the bondholders convert their notes to shares, that will automatically
raise the value of the company assuming the stock price stays the same.
if it doesn't reach the threshold though so it's not like they can dump all their shares and make the stock go down. Tesla benefits in that they don't
have to pay the bondholders interest anymore so that helps their cash flow. If the bondholders convert their notes to shares, that will automatically
raise the value of the company assuming the stock price stays the same.
callmesam
Member
So let me sum up:
1. The bonds Tesla issued have already been converted to stock?
2. Does Tesla continue paying interest or are the note holders now TESLA SHAREHOLDERS?
3. The shareholders won't be able to sell their share until some future date contingent on share price being 130% CONVERSION PRICE of $125.
4. Tesla just paid off their DOE loans, got cash & paid off a $600M dollar note for a few million dollars.
I spoke with the author by phone and he has now updated the original Street article. The Forbes reprint remains unchanged, but I added a comment.
As I read the prospectus, essentially the conversion can only be made after September 30, if the share price has been above $161.88 for 20 days. In that case a note holder would have converted at the bargain price of $124.52 per share. Here's a link to the prospectus: http://ir.teslamotors.com/secfiling.cfm?filingid=1193125-13-226108
callmesam
Member
Thank you for contributing on this board.
- - - Updated - - -
According to a poster on TeslaMotors Forum Tesla is producing 550 cars/week and has been since third week of June.
http://bit.ly/13JzdvR
"kidjay | JULY 9, 2013
We took the factory June 25th after going through all the car pickup stuff. So our tour didn't start till 5:30pm, our appt was at 4:30p. The guy that did the tour ask if we wanted to walk the factory instead of the tram they had. By doing this, we were able to go to section were the tram couldn't go! We saw things that most people could not see and it was just my wife, my son, and myself! We didn't leave Fremont factory till 7:30pm. We spent that much time in the factory learning about the MS and going to almost every station on the ground level with robots in full operation and the factory on full throttle with the second shift of the day. The upstairs is off limit where they have the battery operation and some other secret stuff. By the way, they have monitors within the factory and it show how many MS they have produce that week so far. The week prior to us taking the tour. They pumped out 550 MS. The guy told us that was the most they have every done so far in 1 week!"
Wow, cool experience!
With that pace - unless they intentionally run the line at less-than-full capacity, how could they not exceed their production estimates for this year?
OKAY - and now for something completely meaningless.
Meaningless, but fun: I am going to bet that for the first time In History, a US-listed stock - TSLA - closed at 12345. That is, $123.45.
It's a reasonably safe bet, as until recent years stocks traded to fractions, not to decimal places. So there have been only a few years in which this could have occurred, and there are a relatively small number of names whose stock prices are in the >$100 range, and so forth.
All right. Now back to your regularly scheduled mayhem. Carry on.
Meaningless, but fun: I am going to bet that for the first time In History, a US-listed stock - TSLA - closed at 12345. That is, $123.45.
It's a reasonably safe bet, as until recent years stocks traded to fractions, not to decimal places. So there have been only a few years in which this could have occurred, and there are a relatively small number of names whose stock prices are in the >$100 range, and so forth.
All right. Now back to your regularly scheduled mayhem. Carry on.
deonb
Active Member
StapleGun
Member
Jonathan Hewitt
Active Member
What kind of positions are people trying to set up as we approach the next earnings report? I've felt a little cautious as each new ATH has been reached and have sold all stock on margin, all near term calls, and almost all my Jan14 calls. I have retained my Jan15 calls (all ITM) and all non margined stock. I was thinking of putting some of the money back in via more Jan15 options as I think they will give me the most leverage for the amount of risk I want to take which is based on my assumption that a year from now $120 will be a distant memory. If the stock goes down in the next quarter or two I'll be ok as I expect it to be back up by Jan15. My main concern here is IV is still kind of high but do we really see it going down anytime soon?
I know that many here are probably waiting to see if there is a dip and are keeping cash on hand for that dip. I am thinking that if/when there is a dip then that will be an excellent time to utilize margin.
I know that many here are probably waiting to see if there is a dip and are keeping cash on hand for that dip. I am thinking that if/when there is a dip then that will be an excellent time to utilize margin.
Looks like Tesla could win yet another award, but this one is different. Tesla is in the lead for Yahoo Finance's company of the year, the denizens of Yahoo seem to love the stock, in pretty substantial numbers, here is a quote from the article:
"We gave our site's users a few different ways to let us know what they thought: Vote in our poll, head to the comments section below the article or by way of an email.
The poll produced a clear winner, and that was Tesla. Of 70,462 votes cast, 28,306, or 40% of the total, went to Tesla."
That's a major vote of confidence. Also remember, Yahoo awarded Tesla it's 2012 Auto of the Year award most recently too.
Obviously mentioning the recent Nasdaq 100 inclusion, the article looks to pit Ford vs. Tesla, but really demonstrates that TSLA might run away with this accolade, interesting piece as many "main street" investors read Yahoo Finance, use it's watch list, etc...
Tesla vs. Ford: Who Gets Your Vote? | The Exchange - Yahoo! Finance
Make sure to vote as this could give the stock a nice piece of news (and a potential boost), put in my vote this morning with my coffee
"We gave our site's users a few different ways to let us know what they thought: Vote in our poll, head to the comments section below the article or by way of an email.
The poll produced a clear winner, and that was Tesla. Of 70,462 votes cast, 28,306, or 40% of the total, went to Tesla."
That's a major vote of confidence. Also remember, Yahoo awarded Tesla it's 2012 Auto of the Year award most recently too.
Obviously mentioning the recent Nasdaq 100 inclusion, the article looks to pit Ford vs. Tesla, but really demonstrates that TSLA might run away with this accolade, interesting piece as many "main street" investors read Yahoo Finance, use it's watch list, etc...
Tesla vs. Ford: Who Gets Your Vote? | The Exchange - Yahoo! Finance
Make sure to vote as this could give the stock a nice piece of news (and a potential boost), put in my vote this morning with my coffee
Krugerrand
Meow
Make sure to vote as this could give the stock a nice piece of news (and a potential boost), put in my vote this morning with my coffee
Would love to vote if I could actually find the poll. They link for e-mail and other articles, but don't ever provide a link to the POLL...unless of course, I'm blind...which is a possibility.
kevin99
Member
Is the July 24 date pretty much set? When should we expect Tesla to confirm the date? Q1 was reported on May 6 so I was wondering why it is not exactly 3 months to report Q2?
Need to make plan for the July option expiration!
kevin99
Member
Looks like Tesla could win yet another award, but this one is different. Tesla is in the lead for Yahoo Finance's company of the year, the denizens of Yahoo seem to love the stock, in pretty substantial numbers, here is a quote from the article:
"We gave our site's users a few different ways to let us know what they thought: Vote in our poll, head to the comments section below the article or by way of an email.
The poll produced a clear winner, and that was Tesla. Of 70,462 votes cast, 28,306, or 40% of the total, went to Tesla."
That's a major vote of confidence. Also remember, Yahoo awarded Tesla it's 2012 Auto of the Year award most recently too.
Obviously mentioning the recent Nasdaq 100 inclusion, the article looks to pit Ford vs. Tesla, but really demonstrates that TSLA might run away with this accolade, interesting piece as many "main street" investors read Yahoo Finance, use it's watch list, etc...
Tesla vs. Ford: Who Gets Your Vote? | The Exchange - Yahoo! Finance
Make sure to vote as this could give the stock a nice piece of news (and a potential boost), put in my vote this morning with my coffee
This is a very meaningful award. As I put in my other post:
My secret master plan of investing on TSLA
this is yet another indicator screaming out TSLA is the stock of the decade.
Adding to Nasdaq 100 is another too.
TSLA has arrive on the main stage. Rapidly media exposure will again assure Tesla's daring status.
From a recent Chinese article, the first comprehensive oveview
Tesla: The Silicon Valley of genetically modified traditional automotive industry
[url]http://translate.google.com/translate?sl=zh-CN&tl=en&js=n&prev=_t&hl=en&ie=UTF-8&u=http%3A%2F%2Fiphone.myzaker.com%2Fl.php%3Fl%3D51cfe40981853dab5800008c&act=url
[/URL]
Thanks to Google translate, the main theme of the article is
"As one of only 10-year history of the U.S. electric car brand, Tesla Motors swift rise speed meteor sparked the imagination of the world."
Now that is something, "sparked the world's imagination!". Image the the Hong Kong tycoon Li Ka-shing decide to invest on TESLA? like he did on Facebook? Well I don't know how exactly that can happen as TSLA is public traded. But the point is there are huge untapped interest and potential for TSLA.
Everyone one on this forum is privileged. You are probably the 1% of people who has the early access to TSLA's operation, value and competition metrics. If you make the best use of those knowledge, you will look very smart to the 99% of late comers.
Yuri_G
Member
It's not set until Tesla announces a date. I would bet against July 24th, probably early August.
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