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

[KarenRei]

I'm noticing that a lot of TSLAQ still isn't giving up on their Wells Notice theory, and apparently won't give up on it until this funding closes

Seriously, though, anyone who's been buying these $50-100 PUTs for any time in the next year, and doesn't realize that they're being made worthless by this capital raise, deserves their loss.

 

[Mike Smith]

source ?

https://www.cbc.ca/news/canada/federal-rebate-electric-car-1.5117934

 

[powertoold]

I had to look at the short subreddit to see their reaction. "This gives them two more months with the lights on." "Still bankrupt by Q3." "They couldn't even get more than 2B." They just don't stop.

They won't stop until Tesla gets 2-3 qtrs of positive cash flow and hopefully profit.

 

[Unpilot]

This morning!

How my credibility doing now?

About the same

 

[phigment]

https://www.cbc.ca/news/canada/federal-rebate-electric-car-1.5117934

Interesting. I don't see it on the TC site. I wonder if this is just a case of confused reporters.

 

[Dan Detweiler]

Jim Cramer on CNBC just basically capitulated regarding Tesla With respect to their constant super negative bias that is commonly found.

Do you have a link?

Dan

 

[TheTalkingMule]

Any deep selloff in WTI seems to cap or drive down TSLA. Or am I just imagining things?

I know back in the day algos clearly linked WTI and SCTY. Is that happening here with TSLA? Sounds like something unimaginative douchebags would put into their algos.

 

[DaveT]

Here is a serious NOOB question. Is there any way for a normal investor like myself to buy notes? Is there a ticker symbol or something?

Call your brokerage and ask for the bond department. They can help you out.

 

[aubreymcfato]

a pile of BRK/A sitting in the safety deposit box.

a pile!?!

It's never too late, @neroden, to open a fund in your name of us mortals to invest into.

 

[lklundin]

I had to look at the short subreddit to see their reaction. "This gives them two more months with the lights on." "Still bankrupt by Q3." "They couldn't even get more than 2B." They just don't stop.

I guess the short sellers will stop when they can no longer afford Internet access...

 

[FreqFlyer]

https://www.cbc.ca/news/canada/federal-rebate-electric-car-1.5117934

"Ottawa is raising that to $55,000 to increase the options a buyer can choose and still receive the rebate, which will allow some of the most popular cars, including the Tesla Model 3, to qualify. Tesla recently launched a cheaper Model 3 in Canada with a 150-kilometre-range to qualify for the previous limit, according to Electrek."

And footnote

"
Corrections

• An earlier version of this story said the Tesla Model 3 would not qualify for a federal rebate. In fact, the Tesla Model 3 does qualify.
  May 01, 2019 10:55 AM ET"

I read nothing to indicate the Canadian government is making changes to exclude the Tesla 3.

 

[MarcusMaximus]

They won't stop until Tesla gets 2-3 qtrs of positive cash flow and hopefully profit.

Hahahaha, you think they’ll stop then? Tesla already did exactly that just Q3/4 of last year. Q1 was the atypical quarter.

 

[jerry33]

They won't stop until Tesla gets 2-3 qtrs of positive cash flow and hopefully profit.

That won't stop them. Eminent bankwuptcy has been predicted continually since 2008. I don't expect it to stop even when the stock reaches the $4000 target. With any luck there will be a bunch of bankrupt shorts.

 

[Doggydogworld]

Question:
With a convertible note, is it better to issue when the stock price is down so that, once TSLA returns to normal, it covers the increase in note value?

The company wants to get the lowest possible coupon (less cash drain) and highest possible strike price (less dilution). The strike price is set relative to the current trading price, so a higher stock price is better for the company. Convertible arbs profit off volatility, so higher vol means they'll accept a lower coupon and/or higher strike price.

Best case scenario is thus to issue conerts when stock price and volatility are both high.

 

[Fact Checking]

[The TSLAQ cult] won't stop until Tesla gets 2-3 qtrs of positive cash flow and hopefully profit.

FTFY.

 

[Wooloomooloo]

About the same

Something we can agree on.

I like your sig BTW, I say the same thing from time to time.

 

[Zhelko Dimic]

source ?

Seriously?
https://www.cbc.ca/news/canada/federal-rebate-electric-car-1.5117934
I was tempted to use this one:
LMGTFY

 

[MarcusMaximus]

Ouch, there went the whole market(except TSLA)

 

[Fact Checking]

can anyone estimate conversion rate of these new convertibles and what was/is conversion rate of 2025 bonds?

I don't think the 2025 bonds are convertible? Judging by when past convertibles were issued, current SP levels would put the conversion price of new convertibles to around $350?

I.e. if these convertible notes come with a similar anti-dilution hedge it would strengthen the $350-$360 wall of resistance - only robust cash flow over multiple quarters would be able to punch through that.

 

[schonelucht]

Well, he did refinance all the houses (mansions) he owns and pay off margin loans using the proceeds from the mortgages. That probably accounts for some of it.

That refinance happened right around the last SpaceX funding round. Make more sense that the mortgaging was Elon participating in that round rather than paying of loans, no?