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

[deshkart]

TSLA - no other ticker can provide the entertainment of a penny stock with a comfort of a trillion dollar market cap.

You will not see anything like this in your life again.

 

[ZeApelido]

if SP stays this high, wouldn't be surprised if Ford sells some to fund their own factories ...

Of course Ford is going to sell some, every quarter in fact.

How do you think they are going to show profits in 2022?

 

[Paracelsus]

The original rule was introduced by the Securities Exchange Act of 1934 as Rule 10a-1 and implemented in 1938. The SEC eliminated the original rule in 2007, but approved an alternative rule in 2010. The rule requires trading centers to establish and enforce procedures that prevent the execution or display of a prohibited short sale.

The Alternative Uptick Rule​

The 2010 alternative uptick rule (Rule 201) allows investors to exit long positions before short selling occurs. The rule is triggered when a stock price falls at least 10% in one day. At that point, short selling is permitted if the price is above the current best bid.1

This aims to preserve investor confidence and promote market stability during periods of stress and volatility.

I should have mentioned that in my post - thank you @Artful Dodger and @Curt Renz for clarifying. My gasp and sigh and catalyst for posting was that the original rule was implemented just after the Great Crash and it remained in place until 2007 just before the next Crash of Biblical Proportions. Add the repeal of the 1933 Glass-Steagall Act in 1999 and 'Too Big and too Short to Fail' might better describe 2007-2008

 

[CHGolferJim]

Apparently if he DID sell yesterday he has two days to file the paperwork (I think it's a 4S?)...So we'd know by thursday.

How could he possibly restrain himself from tweeting about it once it’s done.

 

[Artful Dodger]

But isn't the price always above the best bid? If the price was below the best bid, then the trade would occur and the best bid wouldn't be a bid anymore, it would be the new price.

These are SEC rules.

Key Points About Regulation SHO - SEC.gov https://www.sec.gov/investor/pubs/regsho.htm

 

[Curt Renz]

But isn't the price always above the best bid? If the price was below the best bid, then the trade would occur and the best bid wouldn't be a bid anymore, it would be the new price.

Sometimes websites awkwardly or ambiguoulsy paraphrase government regulations. The "price" referred to in the regulation is the order (offering) price by the short seller, not the most recent actual price in a trade.

SEC: Rule 201

Excerpt:

Among other things, Rule 201 requires that a trading center establish, maintain, and enforce written policies and procedures reasonably designed to prevent the execution or display of a short sale order of a covered security at a price that is less than or equal to the current national best bid if the price of that covered security decreases by 10% or more from the covered security’s closing price as of the end of regular trading hours on the prior day.

 

[Ogre]

Of course Ford is going to sell some, every quarter in fact.

How do you think they are going to show profits in 2022?

Considering their design and likely battery costs Ford is likely to make $0/ F150 Lightning they sell save the absolute highest trims.

So far they’ve made $100m or so for each Rivian made though. Of course that requires they liquidate.

 

[2daMoon]

Okay, got my daily 3.5% (+ a little more)

Normality has been restored.

 

[SOULPEDL]

Nice closing in a bit...

 

[mongo]

But isn't the price always above the best bid? If the price was below the best bid, then the trade would occur and the best bid wouldn't be a bid anymore, it would be the new price.

A market sale would be at the highest bid price. This allows shorting to burn through the bid list and drop the stock price. The alternate uptick rule requires the shorting order to be above the current bid thus requiring the bid to be increased (a higher bid entered) to cause the sale. This allows capping the price, but not dropping the price.

Price can be at the bid or at the ask if there is more volume on one side than the other.
Buy 50 at 999, someone sells 10 at market or with a <=999 limit order, still 40 @ 999 on bid list and last trade is also 999.

 

[Drax7]

I hear Rivian going into space soon,
they should ipo the idea.

 

[larmor]

I hear Rivian going into space soon,
they should ipo the idea.

Regarding Rivian on CNBC, they were really excited just a half hour ago, emphasizing the 'real orders' of 100k units for the trucks for Amazon, and then quickly said that they are real orders vs other manufacturers with $100 deposits. I guess they say what they need to say to fit the story/tag line.

On an unrelated note, Hertz van driving up to mailboxes in our neighborhood, likely advertising?

 

[Mengy]

Wow, very nice close in such a down market today. Pleasantly surprised!

 

[jerry33]

What it should have taught some is to wait a few minutes before you make the call.

And of course, don't put in any stop-losses.

 

[H Mak]

If the last few days have taught us anything, it's the folly of trying to time the market with TSLA. Buy and hold seems to be the best strategy.

This is me, except that when an unexpected buying opportunity presents itself like the last 2 days I can't resist topping up my core holding. When the price inevitably recovers I will sell the excess shares.

 

[ZachF]

lol Rivian at $100b.

Look I’m happy they’ll get a nice chunk of money to build more EV factories and stuff but holy sugar… Tesla had to deliver ~1 million cars to hit $100 billion.

 

[Sofie]

We need formal announcement on here as soon as we find out whether he’s done selling. Who’s going to keep refreshing the SEC news page?

 

[vwman111]

Am i the only one that doesn't know what "BAU" means?

I understand other technical acronyms such as "BAF" as well as non technical slang such as "AUM".

 

[Sofie]

Am i the only one that doesn't know what "BAU" means?

I understand other technical acronyms such as "BAF" as well as non technical slang such as "AUM".

I don’t know what any of it means, so consider yourself well educated on the matter

 

[Jack6591]

I don’t know what any of it means, so consider yourself well educated on the matter

The use of acronyms is indeed, “business as usual “ on TMC!