Krugerrand
Meow
Let me make a joke: APPL
Other than money, Apple has none of the criteria to make a more attractive deal. I take that back, they do have the distribution network.
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Other than money, Apple has none of the criteria to make a more attractive deal. I take that back, they do have the distribution network.
andrerodpt
Member
Well... there goes the theory that Elon don't care about making money (in this case, spending more than he needed).
Glad to see that the man is a business beast.
Glad to see that the man is a business beast.
If they're really going forward with their EV project, allegedly pushed back a year, it would make sense for them to offer solar solutions too (obviously though AAPL won't buy SCTY). Honestly, it makes sense for ANY EV-centric car company to over solar charging option... The market is idiotic not to realize the full potential here.
edited: wow, butchered spelling and grammar - shhh... It's early
CALGARYARSENAL
Member
We are down 2.5% in Crude oil today. I am sure even Elon is amazed at how people are buying into the future. No correlation with oil prices anymore. We are in this as it is an environmental revolution. Good by ICE.
gigglehertz
Member
They could vote for another offer for the same reason Tesla engineers and execs jump ship to Apple and others - more money up front. Doubtful but possible.
Maybe VW trying to polish it's green cred AND hurt Tesla?
For the record I don't want the deal to go through on these terms, but I'd rather it be Tesla then anybody else, or bankruptcy or agonizingly slow growth.
racer26
Active Member
I don't think people realize just how fast the end of the ICE-era is coming.
With all the effort going into the MTBTM, TSLA should be able to scale Model 3 at a ridiculous rate once the profit starts rolling in. Standing up a new factory is a matter of duplicating the machinery (mostly robot arms) and hiring more people to run it.
Once people figure out that they can eliminate their fuel costs in their cars, and eliminate their hydro bill, for a better value? Look out.
Never mind that if they want to remain in business, Model 3 will force the incumbent automaker's hands on BEV. The public will demand that they start making compelling EVs
Sparky
Member
Yup. Got spanked.
Sold SCTY this morning at $25.60.
Two fortunate things:
When I started this arbitrage game, I bought most of my SCTY at around $23.85 so even with this event I'm still in the green.
I kept a good portion of the TSLA sale at $235 as cash so I didn't go "all in" with SCTY.
But it was definitely an unforced error to make the move I made on Friday. Oh well.
I could turn around and buy more TSLA now but I think I'll stay on the sidelines through the ER.
FredTMC
Model S VIN #4925
So, do I have this correct?
1). Stock swap ratio is locked. SCTY offer price will float based on TSLA price until the deal is completed in Q4
2). There's a 45 day "go shop" window till Sep 15th
3). Shareholder vote will happen sometime in Q4 (for SCTY and TSLA shareholders)
So, if tons of shares get recalled before the vote and result in an increase in TSLA stock price, then SCTY shareholders get that higher price.
1). Stock swap ratio is locked. SCTY offer price will float based on TSLA price until the deal is completed in Q4
2). There's a 45 day "go shop" window till Sep 15th
3). Shareholder vote will happen sometime in Q4 (for SCTY and TSLA shareholders)
So, if tons of shares get recalled before the vote and result in an increase in TSLA stock price, then SCTY shareholders get that higher price.
racer26
Active Member
Another thought that's just occurred to me. If the record date ends up being sometime around the end of Q3, we could end up with the double whammy of recall-for-vote+good Q3 results out of one or both companies.
racer26
Active Member
The one take-away I've got from following this thread the last 6 months, is that none of us has any idea on where TSLA's heading on any given day...
Hey, when we were down $5 this morning I said that investors would eventually view the deal in a positive light! I just didn't think it would only take an hour to get there...The one take-away I've got from following this thread the last 6 months, is that none of us has any idea on where TSLA's heading on any given day...
racer26
Active Member
No idea, bad enough that you can't even just bet against what we say. Its completely unpredictable.The one take-away I've got from following this thread the last 6 months, is that none of us has any idea on where TSLA's heading on any given day...
It is interesting though. SCTY *does* seem to be sticking to the $25.47 valuation that the offer ratio represented at announcement this morning, rather than tracking with the ratio.
Chickenlittle
Banned
To advertise that would encourage an offer to just encourage them to increase their price
flankspeed8
Member
Not sure of that data for traditional dealers, but IMO it makes sense that Tesla would have a much lower conversion rate to a sale as so many of their galleries are now in malls and locations that are a destination among themselves which is going to grab more of the window shopping and curious crowd. This is great for brand awareness but I doubt they get a lot of "impulse" sales from this model. At least yet.
But certainly good for more consumer/mainstream products going forward like TE and SCTY products?
The one take-away I've got from following this thread the last 6 months, is that none of us has any idea on where TSLA's heading on any given day...
Yeah, the old chaos theory in action. Nonetheless, We've had three "Super Mondays" in a row, and if TSLA can climb $3 or more into the green you might see shorts get nervous all of a sudden with the fear that Super Monday 4 is coming and inspire more covering. On the other hand, the other super Mondays had catalysts ahead (SMP2 or Gigafactory reveal) and we don't have the same catalyst power this time. We also missed the initial Monday amateur hour bump up because everyone was trying to figure out how the SCTY announcement would affect SP. And so my prediction: TSLA will go up unless it goes down ; )
Chickenlittle
Banned
Ok so how are options for scty handled and what happens to short interest in scty.
1. Do all loaned scty shares have to be returned prior to close date? I suspect you cannot return Tsla shares if you npborrowed scty shares
2. I suspect scty could still have a premium above the equivalent Tsla price conversion if shorts having a hard time buying shares at conversion price
3. Options for 2017 in scty?. Do they expire on date of close? Do they convert to Tsla options at equivalent price and volume?
1. Do all loaned scty shares have to be returned prior to close date? I suspect you cannot return Tsla shares if you npborrowed scty shares
2. I suspect scty could still have a premium above the equivalent Tsla price conversion if shorts having a hard time buying shares at conversion price
3. Options for 2017 in scty?. Do they expire on date of close? Do they convert to Tsla options at equivalent price and volume?
racer26
Active Member
Not sure about 1 and 2, but for 3, they become TSLA1 options, where a TSLA1 option is for 11 shares of TSLA instead of the usual 100.
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