Tesla, TSLA & the Investment World: the Perpetual Investors' Roundtable

[Johan]

It says clearly:

It's like the MMs have an extra 5B in TSLA to sell.
As did @JBRR

Thanks. So no capping of today's stock price or the price in the next few days due to a locked offering price. Good.

 

[Chocochip]

*TESLA TO SELL SHARES, SEES PROCEEDS OF UP TO $5B

EDGAR Filing Documents for 0001193125-20-312194

At the market program like last time.

Based on the market cap resulting from SP at yesterday's close, $5B is about 0.8% dilution.

 

[Tslynk67]

Don't understand at what price they will raise? It doesn't say clearly in the documents... neither "the closing price of xxx" nor some dollar value, only the term "Common Stock, par value $0.001 per share, Having an Aggregate Offering Price of up to $5,000,000,000" whatever that's supposed to mean?

It's the same deal as the last time - "at market, when they feel like it"...

Are they saving the naked shorties again?

 

[UkNorthampton]

Why these tiny raises with SP sky high? I don't buy into this "can't use the money" nonsense, every company needs money. Grow faster

Excited to hear we were up $23 at one point!

15 Billion? Maybe LG Chem cell spinoff? Maybe Indonesia?

 

[vikings123]

Don't understand at what price they will raise? It doesn't say clearly in the documents... neither "the closing price of xxx" nor some dollar value, only the term "Common Stock, par value $0.001 per share, Having an Aggregate Offering Price of up to $5,000,000,000" whatever that's supposed to mean?

ATM offering allows you to sell at different prices and in installments. It could be this week, next week or the week after the inclusion.

The goal would be to minimize dilution by taking advantage of the stock price. Market typically associates a negative sentiment to ATM offerings as it is very opportunistic. But there is nothing typical about TSLA.

 

[Causalien]

I was a TSLA investor before I found this board. There were some periods where reading this board was detrimental. People would get overexcited about an upcoming event or release, and several times it influenced reckless decisions on my part.

But overall, there’s no doubt that this board influenced large investment gains. A special thank you to those who so diligently cranked out the numbers on what profitability would look like.

The biggest benefit of this board to me has been emotional support. Every single friend and family member had nothing but contempt for Elon, Tesla and TSLA. It got to the point I couldn’t talk to anyone about it for fear of being laughed out of the room.

We were the misfits, and we found each other here.

The Internet and social media has also been subject to mass contempt. And yes, it has spawned hate groups and all sorts of conspiracy theories. It has made many things worse.

But this forum is an example of the baby that we must ensure never gets thrown out in the bath water. Never before in history can a person with a viewpoint or interest that is one-in-ten-thousand find and communicate with an entire group of like minded souls. This is a big leap forward in civilization. It is going to enable more friendships to be formed, more innovations to be collaboratively advanced, and yes, more fortunes to be made.

Ya agree. I come here to escape having to pretend to be normal in real life.

 

[Sancho]

Raising $5 billion at these prices is incredibly positive. I only wonder what has taken them this long.

And when people start doing the math they will also see this isn’t enough to quell the buying pressure coming.

 

[Zaxxon]

I guess Tesla decided this week's trading wasn't interesting enough...

 

[HG Wells]

Perhaps Tesla will go on a buying spree.

Or they got a really good rate on a CD.

 

[mongo]

Thanks. So no capping of today's stock price or the price in the next few days due to a locked offering price. Good.

Depends on how the MM play it. in the worst (not gonna happen) case, it could be traded like shorting (except the shares are real), but that would not be good stewardship. Like the previous 5B raise, Tesla can set a minimum sell price.

Of particular note: this might support the closing cross line of thought:

... to sell the Shares from time to time based upon Tesla’s instructions for the sales, including any price, time or size limits specified by Tesla. Under the Equity Distribution Agreement, the Sales Agents may sell the Shares by any method permitted by law, including in ordinary brokers’ transactions, in negotiated transactions, in block trades, and in transactions that are deemed to be an “at-the-market offering” as defined in Rule 415(a)(4) under the Securities Act of 1933, as amended (the “Securities Act”). The Sales Agents’ obligations to sell the Shares under the Equity Distribution Agreement are subject to satisfaction of certain conditions, including customary closing conditions.

Edit: it would be like 7-8 million shares of capping if they all sold at the Tesla set minimum (assuming Tesla authorized all shares to be sold at that price).

 

[NicoV]

5 billion here, 5 billion there, soon we’re talking real money.
So IIRC, 5 billion now, 5 billion in August, 2 billion in March, so 12 billion raised this year. How many gigafactories can Tesla build for 12 billion?
I see it mainly as a vote of confidence for their battery plans, they must be making good progress with their new batteries to see the need for capital to build battery factories.

 

[MABMAB]

1% diluted price comparted to 12/7 close is 635.34.

This too shall pass.

 

[reardencode]

+100 trading shares at 625.49

 

[Chocochip]

Meanwhile, the "brilliant analysts" over at Yahoo Finance talked to their editor-in-chief Andy Serwer, who made comments on his latest piece (released over the weekend) in the very same vein as Robert Reich: huuuge wealth inequality during the pandemic because a few rich individuals (such as, let's pick a random name, I dunno... Elon Musk) have made massive gains - yes, it's stock gains, but let's not get bogged down by details - worth a total of $1T!!!!! OMFG!!!

No, let's not bring up the fact that we calculated the gains from the bottom of the market this year on March 18 until the top, which is now, cuz what's the point, let's focus instead of some random individuals like Elon Musk who made a wealth gain of - are you ready, everyone - $100B, yes, can you believe it, meanwhile people are getting evicted, now let's quickly mention the need for a tax law change but, quickly and much more importantly of course, let's discuss what some of those wealthy people such as Elon Musk who plays with freakin' rockets all day (do we need rockets during a pandemic? No, I should think not!) should do for the society, because obviously we're perfectly entitled to make decisions for other people's money when there's that much of it!

/rant

Now, why is there no "banging my head against the desk" emoji on TMC, hm? It's critical it is added!

 

[Tslynk67]

And what was said last week, any GS always precede a cap-raise with an upgrade...

 

[vikings123]

The big IF might be any secondary offering that Tesla might do to take advantage of the stock price assuming they already have a plan for the 5 or 10 Billion(4-7 million shares by my estimates). It will not really help S&P with liquidity but could cause more volatility. If you are playing the short term S&P inclusion game it is important to keep this potential dynamic in mind.

I guess this aged well lol. IV should spike now!

 

[UkNorthampton]

Meanwhile, the "brilliant analysts" over at Yahoo Finance talked to their editor-in-chief Andy Serwer, who made comments on his latest piece (released over the weekend) in the very same vein as Robert Reich: huuuge wealth inequality during the pandemic because a few rich individuals (such as, let's pick a random name, I dunno... Elon Musk) have made massive gains - yes, it's stock gains, but let's not get bogged down by details - worth a total of $1T!!!!! OMFG!!!

No, let's not bring up the fact that we calculated the gains from the bottom of the market this year on March 18 until the top, which is now, cuz what's the point, let's focus instead of some random individuals like Elon Musk who made a wealth gain of - are you ready, everyone - $100B, yes, can you believe it, meanwhile people are getting evicted, now let's quickly mention the need for a tax law change but, quickly and much more importantly of course, let's discuss what some of those wealthy people such as Elon Musk who plays with freakin' rockets all day (do we need rockets during a pandemic? No, I should think not!) should do for the society, because obviously we're perfectly entitled to make decisions for other people's money when there's that much of it!

/rant

Now, why is there no "banging my head against the desk" emoji on TMC, hm? It's critical it is added!

FUD might backfire.

"Rich Elon will make the tree huggers hate him"

... but might be interpreted as

"Never thought much of them electrified car thingies, but perhaps this Elron bloke might be onto something, sounds like a winner, maybe I'll look into it. You do see a lot of them Teslas nowadays"

 

[JBRR]

SEC Filing | Tesla, Inc.

Prospectus

Nothing of interest in there.
Reiteration of 500.000 deliveries target for 2020, but not really news.

Underwrites receive 0.25% of the sale.

 

[avoigt]

Now we know why MS raised the SP ...

 

[Nocturnal]

The pre market at least, has shrugged off the offering. Looks like Papa Elon will be building another factory for Christmas.