I don't know for sure, but I imagine the brokerages would just do the bookkeeping and convert the holdings to TSLA. I don't think a recall would have to happen.
-
Want to remove ads? Register an account and login to see fewer ads, and become a Supporting Member to remove almost all ads.
- Status
Yes, you should.
This place is awful and people are openly disrespectful to previous warnings and this community.
If this doesn''t warrant banning, I am not sure what does.
Since I was personally invited 
Agreed. The market has huge potential. But a sizeable transition from ICE won't happen overnight. 500k Model 3 would be a huge achievement, but to provide context. there were 82M cars produced in 2014. As the transition happens from ICE, the ICErs aren't going to go quietly in the night. It will be a battle. Which brings me to the second point...
Actually, this is exactly the kind of problem that can be addressed by throwing money at the problem. Of course, anyone has to have the desire to do so but if (1 ) happens, that will happen to. Need batteries? Call up Panasonic. Need engineers? $1M sign up bonuses go a long way to getting them. And that is where the real competitive advantage in this game will come from: access to capital.
Agreed. But if Tesla is fighting wars on multiple fronts, (battery, solar, cars, trucks, Uber, making a real dent in the 80M cars sold every year) the issue of execution and the need for is greatly magnified.
Tesla is a good bet and a "fun" bet. But it is still a bet as they try to step up from innovative niche company to changing multiple industries at once.
Agreed. The market has huge potential. But a sizeable transition from ICE won't happen overnight. 500k Model 3 would be a huge achievement, but to provide context. there were 82M cars produced in 2014. As the transition happens from ICE, the ICErs aren't going to go quietly in the night. It will be a battle. Which brings me to the second point...
Actually, this is exactly the kind of problem that can be addressed by throwing money at the problem. Of course, anyone has to have the desire to do so but if (1 ) happens, that will happen to. Need batteries? Call up Panasonic. Need engineers? $1M sign up bonuses go a long way to getting them. And that is where the real competitive advantage in this game will come from: access to capital.
Agreed. But if Tesla is fighting wars on multiple fronts, (battery, solar, cars, trucks, Uber, making a real dent in the 80M cars sold every year) the issue of execution and the need for is greatly magnified.
Tesla is a good bet and a "fun" bet. But it is still a bet as they try to step up from innovative niche company to changing multiple industries at once.
I'm still trying to wrap my pea-brain about how the arbitrage gap would work in this instance (assuming there is one). If one goes into the merger with an open short position what happens?
1) If you have to have an incorrect multiple of SCTY to TSLA. What happens to the difference? Does the broker just take the difference back?
2) What happens with the arbitrage gap? If there is one, does the broker just demand you cover the difference, since you most likely borrowed the shares for less than what an equivalent TSLA would be worth, given the current arbitrage gap.
These are assuming that you can keep your short position through the merger. I would presume it would be safest to just cover the position and wait it out. But what do I know, not much is the answer.
I don't think the arbitrage gap is relevant, because it's really just a case of getting 1 TSLA share for every 9.0909... that you hold, no matter what the prices are at the time. (Anyway, the arb gap should completely disappear as soon as the positive vote is in.) For positive shares, I think you'll be paid out for any fractional share at the TSLA closing price on the day the swap happens. I imagine if you're short 90 SCTY shares at that instant, you will end up short 9 TSLA shares, and your account will be docked the cost of 0.9 of a TSLA. It's really just a shareholding of a negative number of shares.
CALGARYARSENAL
Member
So TD called me today (finally) with my control number. Went to www.proxyvote.com and voted my UGE number of shares...LOL.
Glad to take part in history. Go Elon!
Glad to take part in history. Go Elon!
Ulmo
Active Member
I already voted my shares weeks ago, but not before waiting then asking for the control # to be sent. Then, yesterday, I received three more control numbers. Two I had already voted, and one took a fresh vote. I thought I had already voted all my shares before yesterday, but apparently not. If someone gets more of their own proper control numbers, they should verify they voted them all, because in my case, I had one more to do (for whatever reason; a redo because of my request, or something else, maybe some margin issue).
sundaymorning
Active Member
Love the purchase Tesla made today. Once big auto figures out EV is the future, they'll need the tools and robots from Tesla.
Considering that options basically just turn into the equivalent Tesla options, I am assuming the same with short positions, but I do not know that for sure. What I am really curious about is how many SCTY short positions also would want to be short in TSLA after the merger. I've looked it up before and short interest hasn't dipped below 20% for SCTY for years, so I assume a significant portion of them are long-term bankruptcy type thesis positions, but I don't know. SCTY has been portrayed to be in such a worse position than Tesla that, similar to how Tesla was in 2013, that I wonder if a significant amount of SCTY short positions will cover before/during/after the merger. Could be interest to see how things shake out.
European factory in Germany is a subtle but very effective political move by Tesla to separate the interests of the entrenched German ICE auto industry from the German people.I will take red (room temp) wine with my steak when it gets served in my second car on the train
All kidding aside, the prospect of a European factory becoming more of a reality is a good sign for TM...and Long Term TSLA
1in 8 Germans are directly employed by the auto industry, three times as many in related service industry, which means half the population of Germany have existential crisis if they lag behind EV. By this master stroke, Tesla will have German People behind it instead of against. Just brilliant!
Now, I wonder what sops will German govt shower upon Tesla for this massive battery+auto factory. My bet is that, between German govt, Panasonic, and Tesla, Tesla's capital commitment will be no more than 20% of the total project cost; about $2 billion out of ~$10 billion. If so, that would be one heck of great deal!
Given this greater investment in Germany/Europe, I have to wonder if the work on the 100 kWh battery will be to extend it's high speed battery cooling capability. I recall many German posters saying how Tesla's can't keep up on the Autobahn.
I believe it is as simple as this:
If at the time of the merger you are short 1000 shares of SCTY then effective with the date and time of the merger you are then short 110 shares of TSLA. (1000 * 0.11). If it works out to a fractional share then so be it, you hold a fractional share. When you sell (or in this case, buy to cover) your broker will liquidate/handle the fractional share - they deal with this all the time with dividend reinvestments, etc.
Mike
racer26
Active Member
Except no. Tesla already is working with Panasonic to build more batteries. GM or Ford or whoever can't simply call up Panasonic (or SamsungSDI or Sanyo or LGChem or whoever) and get enough batteries to build their entire fleet as EVs next year. The battery production capacity isn't even close to being sufficient, and nobody is working on building enough. Tesla realized that 3-4 years ago and started working on building GF. Before GF was even open, Tesla realized it STILL wasn't going to be even close to being enough, and started working on GF2. Money *can* help grease the wheels, but the longer they wait to start, the more Tesla will steal their market share, and the less money they'll have to do it with. Money can't remove the physical limitation of how long it takes to actually build a factory. Some jobs can't be made faster with more money or people.
Panasonic's Venture with Tesla Weighs on Forecast
<snip>
It’s betting billions on batteries for cars and homes.
Japan’s Panasonic on Monday said it has cut its annual profit forecast after bringing forward some of its investment in a battery plant for U.S. electric vehicle maker Tesla Motors in anticipation of strong EV demand.
</snip>
<snip>
It’s betting billions on batteries for cars and homes.
Japan’s Panasonic on Monday said it has cut its annual profit forecast after bringing forward some of its investment in a battery plant for U.S. electric vehicle maker Tesla Motors in anticipation of strong EV demand.
</snip>
CALGARYARSENAL
Member
Lots of scared people out there. Trump appears to be "grabben them." Another short term buying opp tomorrow??
- Status
Similar threads
- Locked
