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Elon has been quite critical of the media lately (rightfully so) and CNBC is, well, part of "the media". They are determined to punish him and make him regret bad mouthing the media.
Elon will extract his revenge - ask Gawker Media how it went for them when they made enemies with Peter Thiel...
jhm
Well-Known Member
So oil is up over 4% while Tesla struggles to close in the green. I have not calculated it yet, but it does appear that the correlation of oil and Tesla may have weakened over the last few months. I wonder if bullishness on oil is held more firmly while Tesla is under attack. Oil investors do seem to be much more aware of the threat of EVs to oil demand than they were last year. So if Tesla must be beaten down for investors to feel good about oil, then we could see a negative correlation emerge.
What is getting lost here is the notion that oil and gas can be priced low enough to halt EVs and renewable energy. Instead, I think oil and gas will turn to strategies to maximize the price of fuels to make money while they can get away with it. For example, the strategy of exporting LNG to tighten up domestic gas prices makes little sense long-term (global LNG glut, rise of solar), but makes short-term money (driving up prices on captive customers). Such strategies make sense while EVs and renewables are at below scale to radically destroy fossil demand. They can't stop us on price, so they'll make money on price until we can stop them on volume.
What is getting lost here is the notion that oil and gas can be priced low enough to halt EVs and renewable energy. Instead, I think oil and gas will turn to strategies to maximize the price of fuels to make money while they can get away with it. For example, the strategy of exporting LNG to tighten up domestic gas prices makes little sense long-term (global LNG glut, rise of solar), but makes short-term money (driving up prices on captive customers). Such strategies make sense while EVs and renewables are at below scale to radically destroy fossil demand. They can't stop us on price, so they'll make money on price until we can stop them on volume.
jhm, TSLA decoupled from the broader indexes today, too. It's trading in its own world at the moment, but that's a temporary situation until some shorts find a way to exit and Tesla is safely out of the woods with the autopilot disclosure controversy.
Significant uptick in short interest as expected: Tesla Motors, Inc. (TSLA) Short Interest
If/when Tesla finalizes the merger with SolarCity, it will be almost mathematically impossible for all of the shorts to cover. $9billion in short interest is basically equal to the entire float minus Elon’s shares, JB Straubel’s shares, Baillie Gifford and Company’s shares, PWC’s shares, and Fidelity’s shares. This doesn’t include all of the shares owned by other major institutional longs, and other heads of Tesla.
Am I missing something?
Am I missing something?
Runarbt
Active Member
Tesla will issue New shares to pay for SCTY. Wont this keep status quo as it is now. Short interest wont increase from what it is now, the two Companies combined?
Drumheller
Active Member
I'm new to how shorts work so these may be stupid questions...
When a short has to be covered, that means a share has to be purchased, correct? So, in theory, if all shareholders set a sell price of $900, all shorts would be required to pay $900 per share to cover? Am I understanding the basics correctly? I think it would be impossible to get everyone to hold to a high sell price, but the cascade could lead to some very lucrative sells.
When a short has to be covered, that means a share has to be purchased, correct? So, in theory, if all shareholders set a sell price of $900, all shorts would be required to pay $900 per share to cover? Am I understanding the basics correctly? I think it would be impossible to get everyone to hold to a high sell price, but the cascade could lead to some very lucrative sells.
Drumheller
Active Member
Thanks!
So I'm thinking I should just put a good until canceled sell order on my shares at some high price that I would be happy with... JUST IN CASE
Thanks!
So I'm thinking I should just put a good until canceled sell order on my shares at some high price that I would be happy with... JUST IN CASE
Also, I'm not sure if this is true, but I've read that putting a limit sell order at any price, (say 200-500% above the current price), prevents your broker from lending out your shares.
Don't know if this has been posted here yet, but wow, totally spot on. This piece needs to be shared far and wide: Leave Tesla Alone
I can speak to me personally. We would like an X for around town driving to replace a minivan. An x60 would be the best deal possible and could potentially make the sale.
Electrifying
Member
That piece is epic!
These individuals are assisted in their quest by a media that long ago decided that it was completely okay with killing the society on which it parasitically feeds. Every potential flaw in a Tesla, every customer complaint, and every perceived shortfall from perfection in the product, the company, or its people is endlessly chewed into pulp by the mandibles of these filthy dung beetles in an effort to find a morsel of notoriety on which they can subsist.
Thanks!
Could you please elaborate in the current context? Any major move upside or downside? I am a total tech analysis novice. All I know is that Doji is a major tech indicator.
Thanks!
So I'm thinking I should just put a good until canceled sell order on my shares at some high price that I would be happy with... JUST IN CASE
I am going to put in a GTC order to sell at $899 to under cut you though. And someone else will be happy to undercut me at $898 and so on.
There seems to be 2 "squeezy" scenarios.
1) A technical sqeeze, aka shares are "sold out". That is what the VW thing was. There were literally not enough longs selling to bail out the shorts which caused a high, brief, artificial spike. That is unlikely here in the absence of some Stockholder shenanigans. You don't really want this one. Since the reason for the spike is transient longs, even "strong" longs would be scrambling to sell at the top, which means that the top would never really come and you might miss the whole thing if you are on vacation. It's a bonanza for day traders who are lucky but really just a distraction for the company.
2) A "great lurch up" where pent up shorts intersect with facts that show a whole new valuation is probably in order. in 2013 we had a great lurch up where the company showed good reviews, good deliveries and actual financial profit. The shorts who were banking on abject failure had to step out and the valuation moved up to a whole new bracket never to return. The move up was fueled by shorts covering as well as new excited longs willing to pay the premium of the ATH prices. We might be looking at the next "great lurch" in the next 24 months when shorts (again banking on abject failure) meet real model 3 reality. (or TE massive growth/profits or Model S/X net profit or Great GF production results). In 2013 there was a lot of enthusiasm and forward pricing (3 years later still at similar valuations) so the next great lurch would feel the same. Some whole new band of pricing that may not overlap the 180-260 we have been in for 3 years.
The question is when...
Holy cow that is great article.
We now live in an era where raising a billion dollars of other suckers' money and developing a new "app" to take selfies or find imaginary creatures in a porta-potty is considered the apex of human civilization but investing your entire fortune in a quest to build a self-driving electric car is treated like dangerous, egomaniacal adventurism.
FredTMC
Model S VIN #4925
Way To Go Road & Track!
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