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

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You just need someone..like Zac, who can articulate the situation with English that makes sense. There just needs to establish a cause and an affect. Not rocket science here. Twitter is impossible to follow as you just see random post without proper context unless you read the entire chain, which people don't. Don't use Twitter to explain market moving actions.

Which is what a PR dept does. Just somebody who articulates the message for the company. It doesn't need to be this huge investment or red tape, just a few people to vet and publish. Call it what you will, that is what they'd be doing.
 
So I learned I don't actually "own" TSLA shares, at least in the sense that we consider owning something in everyday language (like, how "I own my car," or "I own my clothes"). Read the fine print on your margin account application (page 15, "Add Options Trading and Margin to your Account," for Schwab clients). By opening an account with your broker, you have agreed to loan your securities to your broker at their whim and calling, whenever they feel like, without notifying you. Also, while "your" shares are out on loan, even though you get proxy instructions to vote in corporate elections, those shares voting power goes to the party currently lending your shares. Also, when your shares are being lent, the broker of course receives interest payment for lending, and is incentivized to keep the loan going for as long as possible, while you receive nothing, hahaha, not even your dividends.

You can't make this stuff up, it's all in the fine print.

Here it is from Schwab:

8. Loan Consent. You agree that Securities and Other Property held
in your margin account, now or in the future, may be borrowed (either
separately or together with the property of others) by us (acting
as principal) or by others. You agree that Schwab may receive and
retain certain benefits (including, but not limited to, interest on
collateral posted for such loans) to which you will not be entitled. You
acknowledge that in certain circumstances, such borrowings could
limit your ability to exercise voting rights or receive dividends, in whole
or in part, with respect to the Securities and Other Property lent. You
understand that for Securities and Other Property that are lent by
Schwab, the dividends paid on such Securities and Other Property
will go to the borrower. No compensation or other reimbursements will
be due to you in connection with such borrowings. However, if you are
allocated a substitute payment in lieu of dividends, you understand that
such a payment may not be entitled to the same tax treatment as may
have been applied to the receipt of a dividend. You agree that Schwab
is not required to compensate you for any differential tax treatment
between dividends and payments in lieu of dividends. Schwab may
allocate payments in lieu of dividends by any mechanism permitted by
law, including by using a lottery allocation system.
you don’t beneficially own the portion of shares purchased using margin

any shares owned using your own cash that lending doesn’t apply unless you specifically
opt into a fully paid lending plan

- they can lend your shares if you bought them on margin
- they can’t utilize your shares fully paid for in cash - unless you sign off on it
 
Thanks, what is the initial margin requirment? 50%
I think it depends on your net account value. Just call your brokerage. They’ll let you know.

Tell them you’re considering switching to IB unless they can lower your interest rate to match IB 1.6%.

that’s what I did and it has certainly eased the pain of this TSLA selloff.

Any more questions just PM me.
 
wkhumqdkjpz61.jpg

Dr. Michael Burry’s recent 13F filing (from today) lists 40% of his portfolio as a TSLA short position
They invested in drugmakers Aerpio and Marinus last quarter, and bought stakes in Occidental Petroleum, Precision Drilling, and Scorpio Tankers.
 
They invested in drugmakers Aerpio and Marinus last quarter, and bought stakes in Occidental Petroleum, Precision Drilling, and Scorpio Tankers.
I would think if this fella has any sense of self preservation; at some point he would recognize that they’ve driven this stock to its local bottom and need to reverse their position.

It could be regional privilege; but my kids water polo practice is comprised of about 50% or greater Tesla’s in the parking lot. Don’t get me started on their private school…it’s more than 50% for sure. I would suspect many of these folks have the same experience in their neighborhoods.

Eventually they must recognize that the stock is not going to zero. Covering is imminent. Tick, tick, tick, tick
 
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That's likely one explanation for the decline of TSLA shares in recent months. Many retail TSLA shareholders and meme traders are fans of Elon. When he started tweeting about cryptocurrencies, many of them must have sold some or all of their TSLA to buy cryptocurrencies. Meanwhile, many institutional investors may have become unnerved by cryptocurrency tweets from Elon.
And here’s another factor that's been weighing on the TSLA share price. Undoubtedly, many investors have been selling stock shares to pay for big capital gains realized gains in 2020. Those taxes are due today, implying that their negative effect on share prices should end with the day.
 
Dr. Michael Burry’s recent 13F filing (from today) lists 40% of his portfolio as a TSLA short position

Doesn't that work out to about $67 per share as of March 31, 2021?

He was fantasizing about a 90% drop in share price (under $100) "later this year" in February: 'Big Short' investor Michael Burry says Tesla stock could plunge 90% without major fallout - and a slump could reduce speculation

But that valuation means he probably isn't putting his money where his mouth is. I don't see how any puts with a strike lower than 400 or so could be priced at $67 per share, regardless of the expiry.
 
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I think it depends on your net account value. Just call your brokerage. They’ll let you know.

Tell them you’re considering switching to IB unless they can lower your interest rate to match IB 1.6%.

that’s what I did and it has certainly eased the pain of this TSLA selloff.

Any more questions just PM me.
Way ahead of you. For me it's simply the equity % issue..... Trying to hold on to fight another day sort of thing, had my equity % raised at schwab suddenly and is bad timing for that to happen. I put enough money aside for a dip to 500's, but not enough if they raise the equity %. I only own TSLA. I have no business investing in other companies. But makes sense why that is higher risk for them. I'm never using margin again if I find a way to hold on here.
 
you don’t beneficially own the portion of shares purchased using margin

any shares owned using your own cash that lending doesn’t apply unless you specifically
opt into a fully paid lending plan

- they can lend your shares if you bought them on margin
- they can’t utilize your shares fully paid for in cash - unless you sign off on it
No where does it say they only lend shares bought with margin.

If you day trade on margin, or play with options, as many of us here do, we technically did sign off saying they can utilize our shares at anytime, no questions asked, and without prior notification.

Maybe if I had a simple brokerage account with no option/margin features you would be correct, but for the account I signed up for, they can use any and all my shares whenever they want.
 
Shuffled 6 Jan 22 1200's (at loss) to 3 Jun23 700's. Waiting patiently.
Jan 22 1400 CC sold for 100$ +, are < $10 now :)
In a taxed account, if it wasn't at a loss (because of WASH rules in the US), maybe this might be a great time to make a shuffle like that, because you'll save on taxes by selling those Jan 22's while the price is lower; the resulting tax savings, vs. when selling the 2022's when they're high is that much more (thanks to the tx savings on the sale) you'll have to put into those June 2023's , where they'll be safe for 15 months longer your Jan 2022's would have been. Assuming you are very bullish, you might be able to increase your account Delta in the transaction by buying a farther out of the money Jun 2023 LEAPs.

I think maybe this is how it works, at least, I just made some similar trades with CALL options that I bought. If on the other hand you're talking about PUTS or CALLS you SOLD, then please disregard this post! This is definitely NOT ADVICE in any case.

Smart people, please correct my errant assumptions, thank you.
 
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In a taxed account, if it wasn't at a loss (because of WASH rules in the US), maybe this might be a great time to make a shuffle like that, because you'll save on taxes by selling those Jan 22's while the price is lower; the resulting tax savings, vs. when selling the 2022's when they're high is that much more you'll have to put into those June 2023's , where they'll be safe for 15 months longer your Jan 2022's would have been. Assuming you are very bullish, you might be able to increase your account Delta in the transaction by buying a farther out of the money Jun 2023 LEAPs.

I think maybe this is how it works, at least, I just made some similar trades with CALL options that I bought. If on the other hand you're talking about PUTS or CALLS you SOLD, then please disregard this post! This is definitely NOT ADVICE in any case.

Smart people, please correct my errant assumptions, thank you.
In an IRA

In a Taxed, if you buy immediately, it will likely be a WASH sale, cannot report the loss. But you still position yourself at a lower strike if you think having calls at a lower strike are more benefitial(was so in my case)
 
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Market might be waiting for return to deliveries for MS and MX, newer versions, with presumed higher margins. Got rear ended in my MX, and now thinking of new MX or MS, but none available right now and ordering will be for August-September...
Go on lease busters and take over a lease that has ~6 months left. Problem solved 😉
 
Way ahead of you. For me it's simply the equity % issue..... Trying to hold on to fight another day sort of thing, had my equity % raised at schwab suddenly and is bad timing for that to happen. I put enough money aside for a dip to 500's, but not enough if they raise the equity %. I only own TSLA. I have no business investing in other companies. But makes sense why that is higher risk for them. I'm never using margin again if I find a way to hold on here.
Don't brokerages like it when you just buy or sell a few puts or something to fix that problem? Probably shouldn't cutting it so close on margin in the first place.

Edit - or maybe I'm thinking of something else..?
 
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