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

Krugerrand

Is Cat
Jul 13, 2012
10,684
50,739
Tesla friendly place
I try not to put my poorly informed opinions out here against the informed that have done the research, however.....
There is speculation from different boards and threads (not on TMC) that suggest shorts are either closing positions or not opening new ones because they anticipate another split.
Thoughts?

But, but, splits mean nothing. They’re irrelevant. Nothing has changed. What a bunch of fools. :rolleyes:
 

StapleGun

Member
May 9, 2013
368
736
Detroit, MI
Well they were partially right at least...

Screen Shot 2021-01-07 at 9.46.35 AM.png
 

Krugerrand

Is Cat
Jul 13, 2012
10,684
50,739
Tesla friendly place
I assume I'm not the only one who sees these kinds of comments and whose mind tries to figure out what sort of combination of portfolio size and income size the person has.

It's about 3 months for me this morning. I should be more amazed by that than I am but Tesla has spoiled me.

Also, I had to share this. :D:p
Papa Musk is taking us to Mars. : wallstreetbets (reddit.com)

Honestly, my first thought was ‘he makes $11.175 a month?!

Second thought was $22.35 x the number of chairs in my portfolio...crap, can’t do that in my head. Why the hell can’t it be a nice round number like $20?
 

Artful Dodger

"Ducimus, lit"
Aug 9, 2018
8,266
101,030
Canada
shorts are either closing positions or not opening new ones because they anticipate another split.
Thoughts?
A 'split' per-se does not affect any legitimate short positions; it's just an accounting adjustment.

A 'share-dividend' (which is what Tesla announced in Aug 2020) is another matter altogether: it forces MMs and large Hedge Funds to cover their naked short positions (which are supposed to be closed within 2 day, but some bad actors have developed ways to extend naked short holdings indefinitely by skirting SEC reporting rules).

TL;dr I think Tesla likely monitors the accumulated naked short position, and does a 2:1 share dividend if warranted by the sum effect of the short position on the TSLA mkt cap.

Cheers!
 
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