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

[sdtslafan]

Elon I don’t care what you do.

Just keep making me look good.

 

[CyberDutchie]

Just saw an ask block of 12000 shares at $804, no small potatoes

 

[phantasms]

That ended well.

 

[mongo]

ok noob question .... whyyyyyyyyy are there 70,000 $100 puts there????

A put can be used as a buffer in a long margin position (or to extend it). These reduce exposure by $100 per share (freeing up $10k per contract) for only the price of the premium which is $1 a contract currently.

 

[ABCTG]

I prefer "Harvesting Pine Tree farm for cardboard" has begun.

Harvesting Pine Tree farm to make tissues for the shorts

 

[ZachF]

$804.00

 

[wipster]

Oh TSLA you knooow what I like!

 

[TheGrimSweeper]

Elon I don’t care what you do.

Just keep making me look good.

I was in an Uber last night, the driver had Sirius XM Chill station on.

To my surprise - "Don't doubt ur vibe" by Elon "EDM" Musk came on.

He's taking over the airwaves.

 

[LJS22]

Is Elon flirting with that reporter? Quick, call TSLAQ! Now he's a philanderer!

someone once said Elon doesn’t stutter around beautiful women. Fascinating trait haha

but in more important news, I love even numbers! 804!!

 

[Right_Said_Fred]

I’ve seen people say Tesla will issue the new shares at yesterday’s close of 767, while others have said at today’s close, which is 804. Which is the correct version? And if it’s the last one, does it mean they raise more 5% money or issue 5% less shares?

 

[Curt Renz]

Today’s closing:

--0.43% $DJI
--0.14% COMP
--0.16% SPX

--1.54% FCAU
--0.56% GM
+0.12% F
+4.78% TSLA (

During pre-market trading, immediately after announcement of offering, TSLA was --7.24%

 

[Mkorpal]

Well, I certainly didn't wake up this morning expecting to flip options, but it was too much of an opportunity. Made a nice quick but I suppose.

 

[X Fan]

Trust Elon and the Board so behind the capital raise.

But...it saddens me that they are using GS and MS as lead underwriters.

 

[StealthP3D]

I’ve seen people say Tesla will sell the new shares at yesterday’s close of 767, while others have said at today’s close, which is 804. Which is the correct version? And if it’s the last one, does it mean they raise more 5% money or issue 5% less shares?

I don't know but it would seem weird to announce an offering without knowing what the price would be!

 

[LJS22]

CNBC definitely changed their view on Tesla. I noticed Steve Westly, a former Tesla board member, has been on CNBC programs lately. In the past when CNBC was completely bearish on Telsa, all they invited were Bob Lutz and the likes.

The best thing he talked about today is when he talks about how much the other auto companies wish they could raise money like Tesla. Tesla is raising cash just to secure its foreseeable future, while Ford who wants to and needs to invest in batteries, and new production methods does not have this luxury. For those that understand what is going on it’s clear Tesla is playing from way ahead.

 

[steak&chicken]

The NYU prof was comparing Tesla to Toyota, like for like, auto to auto.... but noting Tesla will need apple like margins as well, which only insinuates the improbability of doing that, thus the current stock price is way too high and must go down to a more realistic level.

NYU prof sold his shares around $640 I believe. And for his value analysis model, he uses very conservative growth rate, margin, etc. If you adjust his model for the 50% growth rate Elon forecasts, you get $800+ price. Adjust couple more numbers up and the price goes over $1,000. So it just depends on the numbers. I believe the growth numbers he uses are too conservative. His loss.

 

[MP3Mike]

I don't know but it would seem weird to announce an offering without knowing what the price would be!

From the filing:

Common stock we are offering 2,650,000 (or 3,047,500 shares if the underwriters exercise their option to purchase additional shares in full).
Common stock to be outstanding after this offering 183,712,086 shares (or 184,109,586 shares if the underwriters exercise their option to purchase additional shares in full).
Use of proceeds We expect to receive net proceeds from this offering of approximately $2.01 billion (or approximately $2.31 billion if the underwriters exercise their option to purchase additional shares in full) after deducting the underwriting discounts and our estimated offering expenses. The estimated net proceeds are based on the assumed public offering price of $767.29 per share, which was the last reported sale price of our common stock on February 12, 2020. We intend to use the net proceeds from this offering to further strengthen our balance sheet, as well as for general corporate purposes. See “Use of Proceeds.”
Each $1.00 increase or decrease in the assumed public offering price of $767.29 per share would increase or decrease, as applicable, our cash and cash equivalents, working capital, total assets and total stockholders’ equity by approximately $2.6 million, assuming that the number of shares offered by us, as set forth on the cover page of this prospectus supplement, remains the same and after deducting the estimated underwriting discounts and our estimated offering expenses.

So they have an assumed price, that can change. But the number of shares have been "fixed."

 

[Tslynk67]

Today is one of those days where it shows how risky it is selling near the money calls to capture premiums.

Depends what you sold and when. I've one $805, sold yesterday morning peak for $1500. At that moment the SP was clearly under the thrall of the MM's for the week; the cap raise turned the tables, but I still expect it to expire tomorrow because the MM's won't countenance a Friday close above $800. I could be very wrong, but I also don't mind to sell 100 shares for @$805 either, never forgetting that the pricing in the premium make the sale effectively @$820.

 

[JBRR]

Maybe I'm reading this wrong, but isn't this filing from 12/31/2018?

Sh*t you're right.

Will edit my posts.

 

[Quesder]

Hi All,
Nissan factory in Japan has to halt because the parts provided by Hubei China is stopped. I wonder how much does Tesla Fremont and Shanghai rely on parts from Hubei? Will this be a black swan to Tesla business, especially Q1 profit?