Yes, they have limited supply so they're targeting the highest margins in sales. GF4 will help out quite a bit.
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Tesla, TSLA & the Investment World: the Perpetual Investors' Roundtable
- Thread starter AudubonB
- Start date
Artful Dodger
"Neko no me"
First job with detailed requirements now posted for GF4 Berlin (Nov 15, 2019)
Senior Legal Counsel, Commercial
Job Category: Legal & Government Affairs
Location: Berlin, Germany
Req. ID: 54804
Job Type: Full-time
Senior Legal Counsel, Commercial
Job Category: Legal & Government Affairs
Location: Berlin, Germany
Req. ID: 54804
Job Type: Full-time
The Role
"The Senior Legal Counsel, Commercial will be a part of Tesla’s legal team and support commercial transactions, negotiations, and related legal matters. The role is based in Berlin, Germany, but may be partly based in another location dependent on your country of residence. This role will report to Tesla’s Associate General Counsel, Commercial and Construction."
"The Senior Legal Counsel, Commercial will be a part of Tesla’s legal team and support commercial transactions, negotiations, and related legal matters. The role is based in Berlin, Germany, but may be partly based in another location dependent on your country of residence. This role will report to Tesla’s Associate General Counsel, Commercial and Construction."
SageBrush
REJECT Fascism
Newb here. Would someone explain this ?
I'm having trouble understanding puts and calls options lingo. Are they from the perspective of the person holding the stock, or does a person e.g. either buy or sell a CALL (or PUT) ?
A bunch of great posts here, I've got an answer on Quora that pulls a lot of my research together into one answer:
https://www.quora.com/In-which-city-is-Tesla-to-build-its-first-European-plant/answer/Darren-Charest
https://www.quora.com/In-which-city-is-Tesla-to-build-its-first-European-plant/answer/Darren-Charest
Fact Checking
Well-Known Member
October is the first month of the quarter, with near zero Tesla inventory all across Europe. Those 298 Model 3s delivered in the Netherlands were only residuals left over from September.
It takes about ~4 weeks for the first EU Model 3s to reach the Netherlands - once supply is there deliveries will resume.
I expect over 10,000 deliveries in November and December, and there was a recent leak about a backlog of 20,000 Model 3 orders in the Netherlands alone.
LN1_Casey
Draco dormiens nunquam titillandus
Man, if only I was a senior legal counsel. And spoke German. And knew the law particulars in Germany.
About 3000 for the 15 days since deliveries started again. Still 45 days left in the quarter, at this rate we’re looking at 12k deliveries in NL in Q4.
Edit: The Benelux FB groups today had (again) the question ‘If I order today, will I receive my Model 3 before the EOY?’. No demand!
Let's start at the beginning: leverage.
Leverage is how much the value of your assets moves in relation to the value of an underlying asset (for example, TSLA stock). If you want to profit more, you increase your leverage, but this comes with the downside that if the stock moves down, you lose correspondingly more. Increasing leverage also comes with costs that accrue over time. Note that you can also decrease leverage which has the reverse effect.
The most straightforward way to increase leverage is to buy stock on margin. Buy twice as much stock as you put in money for it, you double your leverage. The time-costs on margin are in the form of paying interest on your borrowed shares.
Options trading is a more nuanced form of managing leverage. Owning a call option gives you the right (but not obligation) to buy 100 shares of stock from the person who sold the option, at a given price (the "strike price"), at or before a given date (the "expiration date"). Owning a put option is just the opposite - it gives you the right (but not obligation) to sell 100 shares stock to the person, at a given price (the strike price), at or before a given date.
Let's say that TSLA is at $350 and you buy a June $420 call for $2000 (note: options prices are listed per-share, not per-100 shares, so the sale price would list as "$20"). Now let's say that it's June or earlier and Tesla's stock is at $500, and you exercise the call. You can buy 100 shares of stock for $420, which you can immediately sell for $500, earning you $80 per share, or $8000. Minus the $2000 you paid for the option, you've earned $6000 on your investment - e.g. tripling your money on a $150 / 43% rise.
On the other hand, if you never get the chance to exercise the option with TSLA above $420, then you earn absolutely nothing on it, and it's $2000 down the hole.
Puts are just the opposite. Shorts buy puts with low strike prices. If they exercise below the strike price, they can force someone else to buy stock at the strike price which they're buying at the current, lower price - and thus they profit. But if they never exercise above the strike price, then the puts expire worthless.
You can as an investor also take the other side of the bet - selling calls and puts. A bull who sells, say, a $250 PUT, thinks that the stock is going to be above $250 at expiration (and not get dramatically below $250 in the interim). A bear who sells a $420 call is making the opposite bet - that the stock won't be above $420 at expiry.
Buying calls at puts has a maximum liability as the premium you pay to purchase them. Selling puts has the maximum liability of the strike price times $100, which an be a lot (for example, sell a $250 put, the company goes bankrupt, they exercise and force you to buy 100 shares of stock at $250 which they can buy for $0, you're out $25k). Max liability on sold calls is even worse - it's effectively unlimited, since the stock can just keep going up.
Generally sellers of puts and calls cover them, to limit their max risk. A sold put can be covered by having 100 shares of stock short, or by buying a put at a lower strike (buying one put and selling one at a different strike for the same date is known as a sold "put spread"). A sold call can be covered by having 100 shares of stock, or by buying a call at a higher strike (a sold call spread).
A common strategy is the opposite - buying call (or put) spreads. This means that you think the stock will go up (or down), but not by an unlimited amount. By selling off the less likely possibilities, you can buy spreads cheaper than you can buying pure calls or puts. A nice thing about this is that assuming the less likely possibilities don't pan out, you get to watch your obligations on the upper end decline to nothing - and indeed, if you want, repeatedly resell at lower strike prices
On the other hand, if you're wrong, and the price does zoom up past the upper end of your spreads - hey, you've made so much money on the lower ends, it probably won't bother you much. It just means that you could have made more by choosing a higher strike or not using a spread.Terminology:
* Out of the money (OTM): The option hasn't hit its strike price yet, and still isn't that close.
* Near the money (NTM): The option is right around its strike price.
* In the money (ITM): The option has already exceeded its strike price.
Most people don't exercise options themselves. The risk/benefit reward changes over time, and so over time it's generally a different type of buyer who'd rather own a given option, with only the most short-term traders and MMs being the ones to actually execute them (word of warning: one can execute an option well before the expiry if they want. This generally only happens for options that are way in the money). Options have a mix of intrinsic value - e.g. "I could exercise this right now and earn $X" - and time value - e.g. "the market would like to buy this option to bet on the stock price moving between now and the expiry date". Time value declines over time (this is known as theta, and the process known as theta decay), increasingly fast as you near expiry; like interest on margin-purchased stock, this is the penalty you pay for increasing your leverage with options. It you sell options, theta works in the opposite direction, as the time value of the options you sold steadily declines to zero.
The other important greek letter apart from theta (although there's a bunch of them) is delta. Delta is very simple: this is how much the value of your option will increase or decrease as the stock price rises or falls. It ranges from 0 to 1. A delta of 1 means that the value of the option goes up by $1 per share (e.g. $100 per options contract, since each contract is for 100 shares) for every dollar the stock price rises. A delta of 0,5 means that it goes up by $0,50 per share ($50 per contract) for every dollar the stock price rises, and so on. Delta is near zero for far-OTM options and near one for far- ITM options.
There's also an important parameter in the background called IV (Implied Volatility). High IV (like we have now) means that options traders expect big movements in the stock price (up or down) before the expiry period. This pushes the value of options up, often significantly. Low IV does just the opposite - it means that traders expect relatively flat stock movement, so options aren't as valuable. IV tends to rise before major news events and drop after them. Right now IV is rather high because a lot of people think Tesla could be ready to spike big over the next year (showing sustained profitability, producing from GF3, S&P inclusion, etc, plus the imminent pickup launch). This means you pay a premium for buying options, and earn a premium for selling them. IV changes can do weird things - for exampple, after Tesla Q3 deliveries missed Musk's 100k figure, the stock plunged... and while short term option values fell as well, long-term option values actually increased, due to IV rising as options traders saw even the lower 97k figure as being proof that Tesla was on the road to recovery.
Some people love options trading, and some people are terrified of it. It's a great way to balance your risk/reward ratio and fine-tune things (including for reducing leverage - for example, by buying 1 put for every 100 shares of stock you have, you can guarantee that your investment never drops below a given level... e.g. a "protective put" hedge). But you need to understand that if you significantly increase your leverage, your total assets can swing wildly. Like, by orders of magnitude. If in buying stock, you're wrong about timing... well, you just sit it out, and so long as the company eventually recovers, you're fine. With options, being wrong about timing can be crushing. And note that you can be right about a given hypothesis (for example, "Tesla will turn a profit next quarter") and still be wrong about the stock price due to macro effects, changes in outlook, unexpected departures, catastrophic events, a major investor bailing, etc. Keep this in mind if you mess with options, and be willing to accept the consequences. Increasing leverage can both make and lose fortunes.
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Clearly some people don't like waiting
In addition you have to understand that at least in Germany there are dealer registrations („Tageszulassungen“) as well as fleets services with fixed and agreed upon amount of cars they need to buy from the OEMs. That‘s more often than not a mix of cars. Say they want 100 A4 they need to buy 10 A6 an 5 A8, too. In return they get quite a discount but they must register them ASAP (even just for one day hence Tageszulassung) so they show up in the sales stats. I bought my wifes car through one those fleet services with 26% discount.
So I wouldn‘t count those registrations stats in these cases to be a customer who bought the car. Dealer registrations makes up a lot of those. I‘m not aware that Tesla does this besides the usual demo and loaner cars.
I found this website, Options Trading Explained - Free Online Guide to Trading Options, very helpful when learning about options. It also has some basic/advanced strategies to consider.
(Edited in the link to the website i was referring to, sorry didnt have my cup of coffee yet).
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To be fair, I think international deliveries are also skewed towards the end of the quarter as the cars are usually in-transit for the first 6 weeks.
No joke. I agree with you. With the results sofar i mean that model 3 has the most sales this year by far.
I wanted to sell some puts - seemed like taking candy from a baby, but my brokerage required the cash or margin necessary for the trade to be in the account at the time of making the position. So yeah, it ties up money. OK for short term stuff though, I suppose.
SageBrush
REJECT Fascism
I read through the post just now, and will read quite a few more times over the next few days.
Thank you !
You have to enable margin on your account. When I started options trading, I initially resisted enabling margin on my account, thinking I was "protecting myself" from trading on margin. This was a mistake. I was preventing many types of trades that I would have done that would have in effect reduced my risk. For example, buying call spreads rather than pure calls; I would have been in far better shape in Q1 had I done that. And I wanted to do that. But I couldn't do it without either setting cash aside (tying it up), or enabling margin - and my refusal to do the latter cost me, a lot.
Preventing risky trades is something one should do by limiting themselves, not by refusing to enable some flag on their account. IMHO.
As for put sellers: yeah, they've been making a mint on the idiocy of shorts.
Those huge masses of "sh*tputs" that you constantly see expiring on Opricot? Some bull sold them, and some idiot TSLAQ member bought them. But always keep in mind how much risk you're exposing yourself to, and never take on more than you think you can bear.
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If you want to read there used to be a whole thread on newbie options trading.
Newbie Options Trading
hacer
Active Member
I'm wondering if Tesla doesn't get higher margin for European sales now due to the FCA agreement compared to US sales. That could explain the apparent shift of deliveries to Europe at the cost of US sales this quarter.
Another reason might be to further stimulate demand in Europe. It seems pretty clear that actually having lots of model 3's on the streets leads to much greater interest by the buying public since there is no advertising. In the U.S. there are a plenty on the streets so the additional demand for each new delivery is probably smaller than it is in Europe at the moment.
Either way, TSLAQ will spin this as falling US demand, but it is actually just growing US backlog until they can further increase production.
I've had my daily cup and was within less than a minute of deleting your post as a missing-linker. Nice edit. Very helpful as well as Karen's response.
Huh.
We've long known that SR+ order across Europe are pushed back to February.
Well, apparently in some countries (at least, Germany... but not the Netherlands or Norway), LR AWD orders have also been pushed back to February! In Germany, only new Performance orders can be delivered this year.
I wonder if this is going to start happening in more countries?
We've long known that SR+ order across Europe are pushed back to February.
Well, apparently in some countries (at least, Germany... but not the Netherlands or Norway), LR AWD orders have also been pushed back to February! In Germany, only new Performance orders can be delivered this year.
I wonder if this is going to start happening in more countries?
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