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

[MP3Mike]

This is interesting

How will the Inflation Reduction Act impact my eligibility for the electric vehicle (EV) federal tax credit? - Support Center - Rivian

On Tuesday, August 16, the Inflation Reduction Act was signed into law. At this time, we’re no longer accepting new binding order agreements to purchase Rivian vehicles. As a reminder, buyers who signed a “written binding contract” to purchase a qualified EV before the Inflation Reduction Act...

rivian.com

Really?

Signing a binding order agreement does not guarantee vehicle pricing

Well that isn't much of a contract. Binding on you, but we can do whatever we want...

So besides possibly getting the tax credit what do you get for making your deposit non-refundable?

 

[Gigapress]

Would it be possible if the Twitter BoD or an investor (group) required Elon to have it be source from TSLA?

I have no idea. That would be useful to know.

In general I think Elon could use margin to avoid ever selling TSLA shares while he’s alive. He could keep borrowing against the huge and increasing equity value and then when he dies his estate would finally sell shares to pay off the loan with the rest of the shares then donated to charity. Additionally, if Tesla ever pays dividends in his lifetime then he’ll also get cash from that.

If my understanding is accurate then Elon has a choice between debt and asset sales to get cash for spending, so selling TSLA now is a choice rather than an unavoidable need. I believe this also applies to those of us who aren’t billionaires.

 

[Todd Burch]

Yes. And April he said that he has no plans to further sells. Yet he sold.

Things change sometimes.

And since Elon hasn't liquidated 100% of his TSLA stake, at some point in the future (hopefully long into the future) he'll sell a lot more. Saying "I'll never sell any more" wouldn't make sense.

 

[betstarship]

Really?



Well that isn't much of a contract. Binding on you, but we can do whatever we want...

....it allows customers to qualify for the EV tax credit for a $80k+ vehicle.

 

[betstarship]

Here, more:

https://twitter.com/x/status/1557461917882392578

 

[mongo]

....it allows customers to qualify for the EV tax credit for a $80k+ vehicle.

They use the term from the bill 'binding'... I do not think it means what they think it means...

Binding vs. Non-Binding Contracts - LawDepot Blog

A binding contract typically includes key elements that make the contract valid, such as:

• Offer and acceptance. When one party presents something of value that they wish to exchange with another party for something else of value, that is an offer. Once value is offered, it must either accepted or declined.
• Consideration. The benefit that both parties gain or receive is from the contact is generally the consideration, which can be monetary or even a service, object, or anything else that holds value.
• Mutuality or intention. Simply put, this term means “meeting of the minds”, which is a phrase that means all the parties involved in the contract intend to create a valid, enforceable agreement.
• Legality. In order for a contract to be valid, it must not contain unlawful promises or consideration. A common example of unlawful consideration is a promise to do something that is against the law, such as commit a crime.
• Capacity. Capacity means that a person signing the contract has the legal ability to do so. For instance, a minor generally isn’t considered as having the capacity to legally sign a contract.

Generally, a contract is considered binding when it includes all of these elements, and doesn’t contain invalidating issues that could lead to things like undue influence, coercion, or duress.

 

[Pezpunk]

Perhaps we can take all Twitter related trolling to the Twitter thread? People can throw their hisssy fits over there.

Pointing out that Elon made a foolish unforced error with this Twitter nonsense isn’t a hissy fit, it’s simple objective reality.

The hissy fits are being thrown by the ones who want to plug their ears and chant “ELON IS INHERENTLY INFALLIBLE” no matter what happens, and who are therefore annoyed by any mention of this fiasco.

 

[hobbes]

Looks like according to finance.sina.ch Giga Berlin will soon be using BYD blade batteries end of Aug/beginning of Sep:

https://twitter.com/x/status/1557449213033824262

Another article on this:

BYD supplying Blade batteries to Tesla's Giga Berlin

Last month we reported on speculation that BYD would supply batteries for the Tesla Model Y early next year. However, things have moved pretty fast, and the Chinese auto company has now made actual deliveries […]

driveteslacanada.ca

Once again not clear usage of the word "battery". Wonder if they are delivering cells which are integrated into battery packs in Berlin or whole packs. I think the latter is unlikely because the pack needs to fit into the rest of the car and Tesla would have to give the plans to BYD.

On the other hand, AFAIK Tesla has never used blade cells in their packs at all and Berlin has not even built packs from cells so far, just got complete packs built from 2170 cells at Giga Shanghai.

 

[The Accountant]

"That leaves $22.4 billion he’d need to fund the remaining equity commitments, assuming his partners don’t back out. Musk hinted that this is “hopefully unlikely,” but if they did it would leave him on the hook for $29.5 billion."

Elon is not on the hook for $29.5B. That is factually incorrect.
Here are the details;

He has a shortfall of about $2.2B if he is forced to go with the $54.20 price offer. But he can easily get that from using Tesla stock as collateral or getting more outside investors. There is also the likelihood he negotiates a lower price.

Of the funding above:
- Elon's Cash is locked and loaded. He has this cash.
- The debt financing is committed from several banks using the Twitter shares as collateral.
- the $7.1B from Investor Friends may change but I understand their are other investors who are ready to come in if others back out.

The investors behind the $7.1B currently are:

​

​

 

[ZsoZso]

The MMD is almost over

Oh, don't worry, we lost less than $9 between today's open and close, that's nothing compared to the days when Elon was dumping shares

 

[ZeApelido]

These twitter hacks are really starting to piss me off.

I almost want to make a youtube channel where I just mock every low-IQ (or high-IQ and intentionally misleading) Tesla troll.

https://twitter.com/x/status/1557446681850834944

 

[TheTalkingMule]

These twitter hacks are really starting to piss me off.

I almost want to make a youtube channel where I just mock every low-IQ (or high-IQ and intentionally misleading) Tesla troll.

We'll by all means let's link to their content and post it all over the internet!

 

[AndrewZ]

- the $7.1B from Investor Friends may change but I understand their are other investors who are ready to come in if others back out.

Somehow I doubt there are big players clamoring to get in on a deal that even Elon himself doesn't want to do lol

And he shouldn't and they shouldn't, because Twitter isn't worth anything close to $54.20

 

[Nocturnal]

Somehow I doubt there are big players clamoring to get in on a deal that even Elon himself doesn't want to do lol

And he shouldn't and they shouldn't, because Twitter isn't worth anything close to $54.20

Well, that's hard to say. Elon's record of amazing returns for investors speaks for itself. I think this whole thing was a fool's errand but if it closes I'll have to grab some Twitter stock and maybe grab a quick 2-4x once he makes some basic changes to the company.

 

[The Accountant]

Somehow I doubt there are big players clamoring to get in on a deal that even Elon himself doesn't want to do lol

And he shouldn't and they shouldn't, because Twitter isn't worth anything close to $54.20

For some investors, it may be about what it will be worth in 5 to 10 years based on Elon's plans.
We don't know Elon's plans but the investors do. Maybe there is a 10x at play even with a $54.20 entry price.

 

[JRP3]

When he needs cash, he sells shares, just like anyone else living off his investments.

Please stop trying to pretend that a CEO selling is the same as anyone else. Especially if they are selling to buy a different company.

 

[TheTalkingMule]

Please stop trying to pretend that a CEO selling is the same as anyone else. Especially if they are selling to buy a different company.

Please stop pretending the Technokimg is like any other CEO.

Elon does what he wants. Why are we even discussing this?

 

[dhanson865]

Pointing out that Elon made a foolish unforced error with this Twitter nonsense isn’t a hissy fit, it’s simple objective reality.

The hissy fits are being thrown by the ones who want to plug their ears and chant “ELON IS INHERENTLY INFALLIBLE” no matter what happens, and who are therefore annoyed by any mention of this fiasco.

It's not objective reality until the court says Elon made a mistake and/or we can look at it with years of hindsight.

It's purely too soon to tell if this is a good decision with a messy appearance or a bad decision with a messy appearance.

Anyone being truly objective is undecided at this point.

 

[Big Time]

Please stop trying to pretend that a CEO selling is the same as anyone else. Especially if they are selling to buy a different company.

Think of it as aquiring?

 

[Big Time]

4 out of 4 panelists on cnbc fast money are negative lol