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Calvin.K
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Within the next two months from what I understood on the conference call
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The negativity around TSLA right now in the media and elsewhere is staggering. Over the past 2-3 weeks is some of the worst I've seen, though I unfortunately haven't been in the stock as long as many of you here. Even so, the stock remains above $200.
I am ready to reverse the trend and hear some good news for once.
I am ready to reverse the trend and hear some good news for once.
No. Tesla needs to execute on the model 3. It doesn't matter what articles are written, or how the stock moves day to day. Even a fatal accident making front page news is probably helpful to Tesla. Most people haven't heard of Tesla.
Actually, there's now 104k shares available at IB (up from about 60k yesterday). I'm guessing there's some covering into these dips which is making the downward plunges less severe than they could be. Strangely, the interest rate remains above 32% to short it.
Still 0 shares available at Fidelity, with estimated annual interest at 15% (vs. 16% yesterday)
Those days are pretty much over. But you do need to ask them ask to be transferred to a Merrill Edge account. I use them because I don't pay any fees due to Bank of America accounts.
In theory I prefer smaller financial institutions, but the services are more extensive with the big ones.
Schwab just offered me 6% to lend out my shares, which is unusually high for them. I haven't gotten a lend offer in a while either. (I declined)
(Schwab would charge a much higher rate to the shorter. The 6% is in support of the quoted message of 15-16% not a different datapoint)
Here's hoping Tesla doesn't advertise - ever.
I 100% agree with Elon that advertising is deceptive and not in the interests of the consumer. Another reason I can't stand dealer commercials - hypocrisy and lies just bug me, especially when shouted loudly.
I 100% agree with Elon that advertising is deceptive and not in the interests of the consumer. Another reason I can't stand dealer commercials - hypocrisy and lies just bug me, especially when shouted loudly.
phigment
Member
Tesla’s VP of Product Technology leaves for Facebook
Just saw this. Another VP leaving. News was released this morning at 7 EDT, so many traders should already know about it. Any thoughts on this?
Just saw this. Another VP leaving. News was released this morning at 7 EDT, so many traders should already know about it. Any thoughts on this?
Bloody IB is not letting me login from work. But this morning I saw short rebate rate well north of 30%.
I see desperation on the dark side. The amount of negative headlines from all around is simply staggering. Trying their best to get some longs to sell so shorts can cover. How long will they stand? The math is simply untenable.
70%+ owned by institutions, 20%+ owned by insiders like Musk. But almost 20% of shares out shorted. So unless institutions sell, shorts can't possibly cover. But if institutions are not going to sell hard despite such an abysmal delivery number and front page cover of death on AP, why would they now or any time soon? I see a very strong potential for a squeeze. Hang on tight folks.
Thumper
Active Member
Another point to make about large institutional holders, is that they are also ones of the largest brokerage houses, which, since they do a lot of lending to short sellers, do have "insider" information on total amount of shares lent, available to borrow, etc. Having this information at hand makes them even less likely to sell, as they probably has much better understanding of exactly how untenable situation is, and just how much, they, as owners of major position in TSLA can benefit from the forced short covering. I've made this point before, but they seem to control levers that can make forced short covering (due to margin calls) more likely: increasing interest rates, increasing their long positions, etc. This just can't be helpful for those holding short positions...
Perfect storm?
At some point in time, this kind of news will concern institutions. This, and the other high level departures reveals the pressure these people are under. They are leaving their stock options on the table and looking for greener pastures.
I wonder if it has to do with their play concerning VR and Oculus. That's the only thing I can think of outside general knowledge of product promotion.
I think we have known for a while now that all the elements of a perfect sh*t storm for shorts are all there. It's just a matter of right trigger. We looked for FCF+ signals early in the year, unfortunately that didn't pan out due to model-3 ramp pull in, we looked for strong delivery numbers in Q2 that didn't happen, now we have this merger trigger, which seems to necessitate recall of lent shares or worst case we have q3 deliveries (or it's guidance in Q2 ER). Overall, it looks like somewhere over the next few weeks to few months, there would be a strong rally triggered by a short squeeze.
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