Green!
Edit: probably because I sold my weekly $245 calls yesterday. You’re welcome.
Edit: probably because I sold my weekly $245 calls yesterday. You’re welcome.
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This is not necessarily the case. The offer is not unlimited amount and i guess some investors even do not have chance to participate. On the other hand, shorts can participate and use the new ammo to dump in the open market.
The key now is how many shorts gonna cover
tsla 2.0% convertible senior notes 5/15/24
semiannual 5/15 and 11/15 int beginning nov 19
conv premium ~ 27.5%
243 * 1.275 = 309.83
conv price 309.83
3.2276 shares common for every note (1000principal)
cusip 88610RAG6
https://ir.tesla.com/sec-filings/sec-filing/fwp/0001193125-19-135776
The convert looks like a pretty good deal...
Lol, ur right! Lots of moving parts to this story!Not everybody knows/cares about the notes is the simple answer to that one. I'm sure there is a more complete and correct answer as well.
Now that the capital raise is done, I do want to express my disappointment with Elon and most importantly Deepak Ahuja (good riddance in retrospect).
They knew the situation was so tight that at some point in Q1 they may have dipped below a $1B in net cash, maybe not, but what would have happened if the 50% delivery in 10 day had failed?!
Clearly a fk-up by the cfo, (Elon should be blamed too), who couldn’t prevent this risk and instead allowed for $920m debt to be repaid in cash. Maybe they were counting on it to be converted? If so, very naive. The real losers are the existing shareholders (including Elon) who lost value from the ill-timed more dilutive capital raise.
Some previous big shareholders fared well, Fidelity and trowe sold in March or before. But more importantly the shorts benefited in many possible ways.
Clearly, Elon/Deepak fkd-up on this bad planning and I think it costed Tesla SP $50-$75 near term pressure and 0.5-1.5b In net value loss. In the scheme of $500 billion market cap potential this may not seem a lot but, hey, who has seen the future?
- They are able to now hedge by buying convertibles more affordably.
- Cover some of their shorts using newly available 3.1 million stocks.
- Most importantly they can cover cheaply as many Longs including Gerber K and some on this forum had to sell their holdings under capitulation.
Now I suspect the SP won’t recover to $300 mark in the near term unless Q2 becomes a big hit quarter on P&D. Knowing that Tesla under delivers, it is likely it will not. Would love to be wrong here.
I am a big Tesla bull, but very annoyed at this issue. Zach seems too young, and I am worried, given the CFO should be the most conservative guy in the company, that Zach’s relative youth could be a negative factor(?)
I wish we can ask this to Elon and Zach and see if they learned from it. At least they sucked it up and decided to raise the capital. Better safe than sorry.
New GF3 drone video from earlier today
considerable difference from the march 2019 that had a convert price of around 359, 362 w/ interest
I like the volume: an active trading day seems to be in the cards considering <20 minutes to pass 33% of average daily volume and clearing 43% in <30 minutes. With all of the activity I can't help but wonder if there is some short covering going on mixed with profit taking on the >$10 differential for those who bought near the bottom. Might be interesting to ask @ihors3 at end of day what short activity he saw.
Clearly a new drone pilot, too jerky
great hindsight, now give us some foresight and guarantees
With the volume, hope this just institutions buying....you know what I meant Short squeeze will start when SP reaches 270?I am proud of TSLA today, again at about +10 (4%)