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

[Artful Dodger]

Forgive me if I'm being a little daft here, but isn't the annual meeting in October/ Fall? Seems to me we have quite a wait for this so this is just a bit of a teaser announcement.

Or might they move the meeting forward a bit?

Tesla Facts on Twitter: "Likely date of the Tesla annual shareholder meeting: this summer or fall. Stock split in form of a "stock dividend" would only require a board decision after shareholders approve of the higher limit for common shares." / Twitter

Traditionally, Tesla AGMs have been held in June. This was postponed twice during Covfefe, but there's no reason to believe Tesla couldn't go back to June. It just works better for their annual reporting cycle.

Further this year, both Amazon and Google are doing big splits in the Summer. It's likely a good time for Tesla to get it done too, and avoid the movement of capital out of TSLA to those other 'splitters'.

Cheers!

 

[Curt Renz]

The split will make it very likely that TSLA will be joining DJIA which is stock price weighted (vs market cap in S&P500).
At 3% entry into $10T index... that's another $300B of float that will get locked up. Buckle up!

Indeed, a split would be needed so as not to potentiallly overweight Tesla in the price weighted DJIA. That may have been a significant factor in the Tesla board's decision.

Oddly, there has not been an automaker in the DJIA since the GM bankruptcy in 2009. After a split, Tesla would be a natural addition. While the DJIA is not as significant as in the past, membership bestows the prestige that attracts money manager and consumer interest.

 

[ZeApelido]

U.S. Fines are increasing for automakers not meeting fuel economy requirements.

Remember when Stellantis said they would be self sufficient?

The decision is expected to cost Chrysler parent Stellantis (STLA.MI), for instance, as much as $572 million by the company's prior estimates, while boosting the value of compliance credits sold by Tesla.

LOL. Come back to daddy.

EXCLUSIVE U.S. boost fines for automakers not meeting fuel economy rules in Tesla win

The U.S. National Highway Traffic Safety Administration (NHTSA) on Sunday reinstated a sharp increase in penalties for automakers whose vehicles do not meet fuel efficiency requirements for model years 2019 and beyond.

www.reuters.com

 

[Opus BC fan]

Wow. The morning routine of checking the stock price with my morning coffee is much different in Oahu (vacationing) Cheers to the longs!

 

[TheTalkingMule]

Yahoo is showing EPS estimate for 1Q22 has moved up today........from $2.24 to $2.25 and Fidelity is showing the same.

Look for the big "adjustments" to begin any moment now, adding even more squeeze to the float. I assume the quote we'll hear on CNBC less than a month from now is that "expectations were for $2.65".

So annoying. These guys get all the privileges of Vegas and none of the responsibilities.

 

[TheTalkingMule]

U.S. Fines are increasing for automakers not meeting fuel economy requirements.

Remember when Stellantis said they would be self sufficient?

I think someone posted this yesterday and it kinda faded into the background.

We saw credits slip a LOT over the last handful of quarters if I'm not mistaken. A reversal of Trump's reversal could mean HUGE surprise earnings beat(s) down the line. Especially since the market has been growing exponentially in the background and legacy automakers are still essentially at a standstill.

Lets take our best collective guess at when that'll be and then conveniently forget about it.

 

[AudubonB]

Redundant discussion on split being deleted. ===>READ TODAY'S POSTS, ALL!<===

 

[Usain]

U.S. Fines are increasing for automakers not meeting fuel economy requirements.

Remember when Stellantis said they would be self sufficient?



LOL. Come back to daddy.

EXCLUSIVE U.S. boost fines for automakers not meeting fuel economy rules in Tesla win

The U.S. National Highway Traffic Safety Administration (NHTSA) on Sunday reinstated a sharp increase in penalties for automakers whose vehicles do not meet fuel efficiency requirements for model years 2019 and beyond.

www.reuters.com

This might be bigger news than the stock split. It will hasten the death of the legacy OEM's and put a lot of money in Tesla's pocket. It might also help congress get on board with new EV tax credits, thinking it will bail out the legacies. But again, such a move will only hasten their death and enrich Tesla.

 

[nativewolf]

Indeed, the repeal of Trump decision is big news. To Ford's credit they are moving as quickly as they can right now. GM and Stellantis...we'll see.

Ford even prepared by designing a split into EV and old company.

 

[Artful Dodger]

We may or may not like Jonas, but this tweet shows he's convinced i think:

View attachment 787022

Lol, that "Tesla vaccine" is the cure for "portfolio".

 

[larmor]

U.S. Fines are increasing for automakers not meeting fuel economy requirements.

Remember when Stellantis said they would be self sufficient?



LOL. Come back to daddy.

EXCLUSIVE U.S. boost fines for automakers not meeting fuel economy rules in Tesla win

The U.S. National Highway Traffic Safety Administration (NHTSA) on Sunday reinstated a sharp increase in penalties for automakers whose vehicles do not meet fuel efficiency requirements for model years 2019 and beyond.

www.reuters.com

They are self sufficent-- stellantis is buying carbon credits themselves from companies and entities that sell them for money, not for peanuts (or peanut oil).

 

[StarFoxisDown!]

I always find it amusing how TSLA will hold up as the macros decline only for the stock to hit a brick wall when the macros recover.

Seems like 1,090 is the line in the sand

 

[Artful Dodger]

Wow. The morning routine of checking the stock price with my morning coffee is much different in Oahu (vacationing)

OT:

Spoiler: Oahu

So if I had to guess, I'd say Kapiolani, on the South coast?
Paging @Papafox @LN1_Casey for the local color.

Enjoy your cup of Kona coffee!

 

[BrownOuttaSpec]

I think someone posted this yesterday and it kinda faded into the background.

We saw credits slip a LOT over the last handful of quarters if I'm not mistaken. A reversal of Trump's reversal could mean HUGE surprise earnings beat(s) down the line. Especially since the market has been growing exponentially in the background and legacy automakers are still essentially at a standstill.

Lets take our best collective guess at when that'll be and then conveniently forget about it.

You're right! @WADan did post this story yesterday and it slipped by us! I know the 6am stock split news is a big deal (or not, I mean, it is the same size pizza after all ) but this happened on Sunday and is 100% a BIG deal for Tesla possibly getting 'free money' from other Auto manufacturers. I highly suggest everyone to take a minute and read it over, a couple of juicy tidbits below

• "The U.S. National Highway Traffic Safety Administration (NHTSA) on Sunday reinstated a sharp increase in penalties for automakers whose vehicles do not meet fuel efficiency requirements for model years 2019 and beyond.".....
• "President Donald Trump's administration in its final days in January 2021 delayed a 2016 regulation that more than doubled penalties for automakers failing to meet Corporate Average Fuel Economy (CAFE) requirements starting in the 2019 model year."
• "The agency has not collected penalties for 2019 to 2021 model years while the issue was under review and is the subject of court challenges."

 

[OrthoSurg]

This is a very interesting way to do this split. Neither the ratio of the split nor the increased number of shares authorized is provided, which may lead naked shorts (to the extent that they exist) to have unquantifiable risk. Also, the date of the announcement of these numbers is not provided, which makes any attempt to arbitrage on this split tricky.

Edit: Further, doing this on March 28, when the quarter is about to close for hedge funds and their outside accountants become heavily involved for reporting purposes, seems notable.

Why someone in his right mind would short a company which has already done a stock split, leading the EV industry and growing over 70% Yearly? Is there treatment for that kind of folly.

There will be 3-4 or more stock splits to come like AAPL and MSFT did over the course of 10 years. Shorting this stock will lead to the same result again and again.

 

[Ogre]

Why someone in this right mind would short a company which has already done a stock split, leading the EV industry and growing over 70% Yearly? Is there treatment for that kind of folly.

There will be 3-4 or more stock splits to come like AAPL and MSFT did over the course of 10 years. Shorting this stock will lead to the same result again and again.

Makes me wonder if Tesla shouldn’t do more frequent, smaller splits instead.

Probably trigger some kind of SEC rule designed to protect shorts “Market Participants”.

 

[Curt Renz]

We may or may not like Jonas, but this tweet shows he's convinced i think:

View attachment 787022

 

[Chunky Jr.]

Why someone in his right mind would short a company which has already done a stock split, leading the EV industry and growing over 70% Yearly? Is there treatment for that kind of folly.

There will be 3-4 or more stock splits to come like AAPL and MSFT did over the course of 10 years. Shorting this stock will lead to the same result again and again.

They aren't in their right mind. I think people are shorting because they have an irrational loathing of Elon and/or EVs in general. It has nothing to do with any fundamentals of the company.

 

[growler23]

Wow! About as bullish as you can get. Do they save these for days where the stock is increasing?
Quick summary of their thoughts: Traditional auto says they can find a way around dealers to compete with Tesla, but they probably can't anytime soon. That dispute may wend through the courts all the way to the Supreme Court one day. Also, the downside of the long and possibly conflict-affected EV battery supply chain, if it can be improved, pretty much Elon is the only guy likely to figure out how to improve it.

Again, BAF.

 

[2daMoon]

Wink Wink, Nudge Nudge, Say No More​