In my experience granting rights to existing shareholders is usually a somewhat desperate move to raise capital. Often, traditional PIPES, etc. are too expensive, fee-wise as well as a deep discount-to-prevailing market price. Not to mention, Tesla is not in need of a raise. If rights are in the works at all, I believe it would have to do with cutting Tesla shareholders into a Starlink IPO.
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Tesla, TSLA & the Investment World: the Perpetual Investors' Roundtable
- Thread starter AudubonB
- Start date
JRP3
Hyperactive Member
NY releases GF Buffalo employment numbers
www.wgrz.com
Cuomo administration releases Tesla jobs report
Tesla expects it will 'meet and exceed' all of its year two requirements by the end of 2021.
www.wgrz.com
Yes, and James is not much admired by his father. He has been a thorn in Ruperts vision since James was a teenager, if not before then. He no longer has much influence in any Merdoch empire businesses.
UkNorthampton
TSLA - 12+ startups in 1
And available cash in the same / tax efficient accounts too.
I think there's a possibility of a Cum Rights offering (Cum Rights) for Tesla, and also a possibility of a SpaceX / Boring / Neuralink / X linkup.
Interesting, potentially very rewarding long term but perplexing as to how I could buy the shares or sell the rights within my UK ISA or SIPP Pension with no cash available, and even if I could borrow it, limits on how much can be paid in. Answer would seem to be a variety of borrowing money, selling some Tesla, selling Cum Rights separately (aka as "nil-paid rights" I believe - What is a Rights Issue? Everything You Need To Know - Shifting Shares).
"if you have maxed out your ISA allowance (currently £20,000 per annum) then you can’t add additional capital in order to take up your additional shares. Luckily, there is a solution here, as we can tail-swallow and sell some of our rights and use the proceeds to fund our entitlement. "
I'm sure there might be difficulties in a variety of countries / low tax investment/retirement structures
as legit evidence that Tesla will reward long term shareholders with additional shares at a significant discount to the market.
The place where electric motorcycles really shine is off-road…so, Dirtbike’s, enduros, motocross, etc.
Without all that noise you really are more in tune with your vehicle and the terrain, which is a huge advantage in my opinion.
My good friend had a Harley. He ‘loved’ the shirt I got him a few years back. I could never get a picture of him wearing it… And I’m pretty sure it’s been converted to a rag for cleaning up oil drips (yes, they leak from the factory)
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UkNorthampton
TSLA - 12+ startups in 1
Not overly helpful as it relates to a troubled company (unlike Tesla) What is a Rights Issue? Everything You Need To Know - Shifting Shares
"Rights issues are usually done when a company needs more capital. It is therefore a sign that the company could be in trouble, and this can have a negative effect on the stock price.
It can also be a sign that the company’s profits are in distress.
On 1 October 2020 Rolls Royce (RR.) announced a proposed recapitalisation in the form of a rights issue.
Below is the chart of Rolls Royce. I’ve drawn an arrow on the day the company announced the rights issue. We can see that the price initially fell, only to rise above the price at the announcement a few days later."
Also includes a UK example timeline (NOT USA!). Record date in this example is just before Rights Issue. Again, not as Dodger described (as a reward for long holders)
For brokers who lent shares out this would be an absolute headache. They would have customers coming at them for these extra shares, and have to make good on them. Any synthetic share would be a debit they have to take right out of the blue. And customers who sold short, would not really always be responsible, or able to be tracked down, leveraged etc to pay that up. In short, carnage for multiple types of people involved in shorting. How can we make this happen?
I spent the past two days crewing a friend run 112 miles across Connecticut so I’m not updated here. What is the info that came out that we’re now discussing this share offering? Just the two CUM tweets? Am I screwed that I sold before the covid dip and bought back twice the amount near the bottom? Some, but not all, are long term now.
PS the Model Y was the perfect vehicle for all this. I’d set the car to LOW and pop her in the car to recover during the height of the heat yesterday. Also my wife and I slept in the vehicle no problem. The car continues to sell itself even at ultramarathon events.
PS the Model Y was the perfect vehicle for all this. I’d set the car to LOW and pop her in the car to recover during the height of the heat yesterday. Also my wife and I slept in the vehicle no problem. The car continues to sell itself even at ultramarathon events.
Yes, you screwed yourself by doubling the amount of your shares at the pandemic low.
Nolimits
Member
Being fully electric, I don’t see why not more Teslas/Evs be pace cars or official sponsers of ultras/marathons/ironmans. Seems like a no brainer
Looks to be a last ditch effort to raise some cash by selling shares at a massive discount. Maybe we can reverse split while we are at it.
In UK-specific terms we need to distinguish between main armlet and AIM companies. Main market are usually in trouble if they issue rights. AIM has dsmaaler, often rapidly growing companies, so rights issues are often used to protect positions of early investors. They are really identical structures but with totally different purposes. On the other hand raising debt for AIM listed companies is usually more expensive precisely because they are smaller and less stable.
Regardless, this is an incredibly boneheaded idea for Tesla. Oops, I did not mince words on that opinion.
Wouldn't it make some crazy sense to do an offering for Starlink and set some fantastical dates in the future?
1.) Shareholders of record on XX/XX/XXXX
2.) Held until XX/XX/XXXX
Existing share holders preannouncement would benefit from the FOMO and squeeze.
Seems more plausible and effective to me than announcing something retroactive that creates potential litigation issues?
1.) Shareholders of record on XX/XX/XXXX
2.) Held until XX/XX/XXXX
Existing share holders preannouncement would benefit from the FOMO and squeeze.
Seems more plausible and effective to me than announcing something retroactive that creates potential litigation issues?
No more delays, invitations going out.
I tweeted about it days ago
Can I be your +1?
"Don't be fooled by the pretty face, this thing's a beast".
Way Off Topic:
It's Sunday and the stock market is closed. But this is the anniversary of a hugely important day in modern history.
D-Day - June 6, 1944
When broadcast “breaking news” was truly significant, and not just hourly click-bait.
My late godfather Charles "Chuck" Brooks, long-time editorial cartoonist for the Birmingham News, was part of the invasion and thereafter always celebrated June 6th as a holiday.
It's Sunday and the stock market is closed. But this is the anniversary of a hugely important day in modern history.
D-Day - June 6, 1944
When broadcast “breaking news” was truly significant, and not just hourly click-bait.
My late godfather Charles "Chuck" Brooks, long-time editorial cartoonist for the Birmingham News, was part of the invasion and thereafter always celebrated June 6th as a holiday.
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