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Short-Term TSLA Price Movements - 2016

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BTW, a few people here have been repeating that "SolarCity Bonds" are yielding 20%. I just did a look up, and for the most part, true corporate SolarCity bonds are trading at investment grade yields - like 2%-3% for 4 year bonds. There are some odd bonds here and there that trade at 14% yield, but they are converts, or have other odd things in the prospectus. Run of the mill SCTY bonds seem fine...
I had my broker go on a "wild goose chase". Looking for these bonds at the huge discount. She didn't find any.
 
Speak for yourself. AFAIR largest shareholders already expressed their approval. Many on this forum too. To be clear, I don't rule out the scenario you're talking about, but so far there's zero proof of it.

You don't know this and nobody is supposed to. From my point of view. The morning conference call would not be necessary if Elon already have the majority of the institution on board. Also, the institutions who will be voting may change their mind if the damage to the stock price is too great. It cost money to hold the shares to vote.

The reason why Elon is smart to recluse himself from the vote is because if it is forced down the investor's throat. The sell fest will be even bigger and you alienate all the institution investors who loaned you the money in the past 10 years. Where are you going to find funding for the next 2 years.
 
You don't know this and nobody is supposed to. From my point of view. The morning conference call would not be necessary if Elon already have the majority of the institution on board. Also, the institutions who will be voting may change their mind if the damage to the stock price is too great. It cost money to hold the shares to vote.

The reason why Elon is smart to recluse himself from the vote is because if it is forced down the investor's throat. The sell fest will be even bigger and you alienate all the institution investors who loaned you the money in the past 10 years. Where are you going to find funding for the next 2 years.

Elon Musk said:
Sure. I don’t know where this bailout comes from, because, I mean Tesla is not the one deciding what the market value of SolarCity is, it’s the stock market is. So, SolarCity could certainly raise capital, equity on its current valuation and I think without any problem. So, SolarCity is headed to I think a very healthy place from a cash flow standpoint and in short order some next three to five months, getting to a cash flow positive so. The company’s around the corner from being cash flow positive and has agreed to raise equity capital on its own. I don’t see how an acquisition is in any way bailout. That’s obviously a false description.

Some pretty strong arguments would have to be presented to refute this. I will also be here every time to question the rationale and reasons for such claims, at least because I sure want to know if there's something fishy going on.

Edit: yes the call was not necessary. They said so on the call. They could just submit whatever the form they needed to submit while initiating the process and leave everyone guessing. But they went above and beyond.
 
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Fidelity loaned out my TSLA shares today, so I'm not sure what short selling restrictions would be in place.
To chime in on this, if you do NOT want your shares to be loaned (as Curt already said) to short sellers by your brokerage you need to set a high limit sell order. Especially true if you do not gain interest from the transaction. Many people do not know that their brokerages lend stocks, those details are buried in the fine print. Since this is technically an 'on order' this restricts them from loaning those shares. My brokerage only allows my limit orders to 30% over the current market price, and many other brokerages have the same caveat so you need to monitor this encase there is a sudden spike -- but generally, of course, that would not happen in a single trading day. I have been doing this for many years on $TSLA stock, and a few others.
 
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To chime in on this, if you do NOT want your shares to be loaned (as Curt already said) to short sellers by your brokerage you need to set a high limit sell order. Especially true if you do not gain interest from the transaction. Many people do not know that their brokerages lend stocks, those details are buried in the fine print. Since this is technically an 'on order' this restricts them from loaning those shares. My brokerage only allows my limit orders to 30% over the current market price, and many other brokerages have the same caveat so you need to monitor this encase there is a sudden spike -- but generally, of course, that would not happen in a single trading day. I have been doing this for many years on $TSLA stock, and a few others.

When this suggestion first came up a while back, someone chimed in that USAA does not loan out shares. But now, I think some other company is servicing all their brokerage accounts - can someone confirm if I need to do this now?
 
Some pretty strong arguments would have to be presented to refute this. I will also be here every time to question the rationale and reasons for such claims, at least because I sure want to know if there's something fishy going on.

Edit: yes it would not be necessary. They said so on the call. They could just submit whatever the form they needed to submit while initiating the process and leave everyone guessing. But they went above and beyond.

Of course no one outside tesla AND solar city had knowledge of the offer or announcement of the offer. That would be an SEC violation. Anyone with insider knowledge that traded on it is breaking the law

I don't like the solar city offer (at this point in time) but I certainly don't believe any institution had advanced knowledge
 
Of course no one outside tesla AND solar city had knowledge of the offer or announcement of the offer. That would be an SEC violation. Anyone with insider knowledge that traded on it is breaking the law

I don't like the solar city offer (at this point in time) but I certainly don't believe any institution had advanced knowledge

What I was referring to is that not disclosing that they're initiating this offer would also be a SEC violation. So they could have just submitted whatever SEC requires and said no further comment until we have all the details worked out. At least that's the way I understood it.

The bottom line is volunteering claims that SCTY is perfectly Ok while knowingly bailing them out of bankruptcy would be quite a stupid thing for Elon to do. I keep asking for why would anyone think otherwise but so far nobody got no answers for me :)
 
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There is more to this than (currently) meets the eye. Elon Musk repeatedly mentioned that there are things he cannot disclose now.

After the deal is done, Tesla owns many GW of energy production. Expect to see an inverter from Tesla soonish. They have the tech in the cars. Certainly some redesign needed for use in solar.

But here is the thing:

Tesla cars are driving about 10 % of the time. 90 % of the time they should be connected to the grid by a (smart) Tesla charger.

These are just batteries with wheels 90 % of the time. If you all link them up intelligently you have the biggest storage facility in the world. Well over 100,000 MS currently with (my estimate) 60 kWh = 6 GWh.

How to use this capacity? Give M3 owners free supercharging in exchange for the right to use say 10 % of their their battery when plugged in (not at the SC but wherever they are when not driving).If you shedule your next trip, the battery range will be there; if you don't they will not take more than 10 % out of your battery, but you might have to go to a SC on the first leg of your trip.

So now integrate solar, intelligent inverters and chargers, stationary batteries und hundred-thousands of batteries with wheels and build the largest utility of all.

As soon as more investors see it, short term stock price will lift off.
 
For those missing the calming dulcet tones of Andrea James, and tearing their hair out over short term losses, this blog post of her's is almost relevant:
Have you hugged a hedge fund manager today? | Andrea S. James, Solve For X Coaching
What do you do when things go horribly wrong? When the amount of money being lost has more zeros than the average person can fathom?

You process it, you manage the cortisol pulsing through your blood stream to get to a place of rational thought, and ultimately, you have to decide on what to do next: Sell the position or double down at this lower level?
 
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When this suggestion first came up a while back, someone chimed in that USAA does not loan out shares. But now, I think some other company is servicing all their brokerage accounts - can someone confirm if I need to do this now?
I use USAA, and I had confirmed last summer that they do in fact loan shares on occasion. I can't remember whom they are owned by, but it is a company contracted out by USAA. Unlike the banking services, it is not controlled in house by USAA. I will double check this with brokerage services tomorrow.
 
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For now. Explain to me how the securitization process works at SCTY. Who owns what. Who is doing the servicing. Who is doing the packaging and selling of the uderlying security.

For the pass through and lease back. Who are the people usually referred to as "funds". I understand that SCTY themselves can be the "fund" party. Are these "funds" mostly composed of banks? Or are these retail customers or corporate end customers?

For others who haven't delved into it. I think a simple step by step guide on how SCTY makes money will work. What percentage is from all the government incentives and what percentage is through credit arbitrage of the different rates. I can also see if I got anything wrong here.
http://files.shareholder.com/downlo...51DED88/Q116_Asset_Financing_Memo_-_FINAL.pdf

http://files.shareholder.com/downlo...7DD00B/2016.06_SCTY_Investor_Presentation.pdf

Get back to me with questions...
 
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