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

[SOULPEDL]

from my limited experience I can only say that if you are going to sell the call buy the others one right away. I had two calls that I sold when they were double what I paid for and I planed to buy some more calls with that money. I decide to wait until the next day thinking that the stock would go down and I would get a better deal..... long story short the next day the stock when up 100 bucks and I decided not to chase the call and now they are worth double what I sold mine for .

That was exactly my thinking.
I had nearly double the number of shares at one time and still kick myself for getting cautious. But I made some good trades along the way and ready to take on more if it comes up. I did pick up 50 shares on that last dip just one month ago at $395. Hard to believe...

 

[Artful Dodger]

And yet the SP is holding up very well, even after bad factory news and controversial tweets. That means all those institutional investors believe the correct thing is to hold through today.

The tweet was just some anger in the moment, and dumb. Nothing more. Q2 will suck... but 2nd half, look out, $1,300 IMO.

Yup.

#3. "Volatility is not Risk; a Stallion that doesn't buck is called a Gelding"​

Cheers!

 

[StealthP3D]

So the real question is who gets the funds. Unfortunately for Tesla, they are not at the head of the line.

Tesla doesn't need subsidies to succeed in brilliant fashion. Even in a world filled with Coronavirus.

But the financial stimulus benefits Tesla because their customers tend to be in the demographic that gets the most money to spend on whatever they want.

 

[ZeApelido]

Today a great number of posts that belong in the coronavirus thread, are instead cluttering the investment thread. This especially should not be the case on the day of the Tesla earnings report.

A great number of posts are critical of Musk and/or Tesla and therefore should be banished to some thread noone will read. This especially should be the case on a day that ends with "y"

 

[Doggydogworld]

I bought some of Tesla's 2024 convertible bonds at a discount some time ago.View attachment 537118

It seems that Tesla has opened up optional conversion of these bonds now. I just got email from ETrade:

a) I think it's an interesting move on their part at this instant in time. I'm trying to understand their motivation. Basically it converts borrowing into equity if someone converts. This is not dilution, in the sense that it doesn't water down the value per share of the company, since the assets go up in lockstep. It could be preliminary to another capital raise though? Clean up the balance sheet to make it look better?

b) What does it mean for me personally? If I convert now, I get 32.276 shares at a cost basis of $309.83, funnily enough that's $10,000.08. But I forgo the 2% annual coupon which is $800 over the next 4 years (I presume I get this year's $200).

c) This is actual news... why can't I find it reported anywhere, or commented about, in the media?

I think I'm going to convert, on the theory that it must be good for Tesla or they wouldn't have made the offer, and hence it will increase the value of my other Tesla investments.

a) It's not a "move" on Tesla's part, the section of the prospectus linked by @Boomer19 automatically gives you the right to convert during Q2 because TSLA closed above 309.83 * 1.30 more than 20 of the final 30 trading days of Q1. This clause exists so convertible arbitrage shops, the main buyers of such bonds, can cleanly exit positions which no longer have arbitrage value. (I doubt any will exit this particular bond at this point since TSLA is so volatile).

b) If you convert you give up the coupon (as you note) and the option premium which still has some value despite being so deep in the money. On a pre-tax basis you'd be better off selling the bonds and buying the stock, but taxes are a big part of this trade so talk to a tax pro before making any moves.

c) It's not really news, just a built-in feature of this bond.

 

[ggr]

a) It's not a "move" on Tesla's part, the section of the prospectus linked by @Boomer19 automatically gives you the right to convert during Q2 because TSLA closed above 309.83 * 1.30 more than 20 of the final 30 trading days of Q1. This clause exists so convertible arbitrage shops, the main buyers of such bonds, can cleanly exit positions which no longer have arbitrage value. (I doubt any will exit this particular bond at this point since TSLA is so volatile).

b) If you convert you give up the coupon (as you note) and the option premium which still has some value despite being so deep in the money. On a pre-tax basis you'd be better off selling the bonds and buying the stock, but taxes are a big part of this trade so talk to a tax pro before making any moves.

c) It's not really news, just a built-in feature of this bond.

Agree, thanks to you and @Boomer19 for your clarifications.

 

[Curt Renz]

A great number of posts are critical of Musk and/or Tesla and therefore should be banished to some thread noone will read. This especially should be the case on a day that ends with "y"

My concern was not those coronavirus posts that specifically mentioned Tesla or Musk. However, there were many posts discussing the pandemic in general and belonged in a different thread. Perhaps I should have been more specific in my criticism.

 

[Boomer19]

OK, it looks like it was a routine triggering of that clause. I would have read the prospectus at the time I bought in, but hey, that was a year ago.

the things are indecipherable for a reason lol

 

[SOULPEDL]

Has anyone bought more today?

 

[StealthP3D]

Call me biased from the poor side, but those all seem to almost exclusively benefit the richer side of Americans.

"Poor" is a state of mind and it's more contagious than Coronavirus. I noticed your signature line makes the claim you are poor.

Unless you like being poor, and want to remain that way, I recommend you remove that claim and stop thinking like a poor person. Because words and thoughts matter. To climb out of poverty it is necessary to think like a successful person.

 

[Mike Smith]

Has anyone bought more today?

8 million shares have traded, so yes.

 

[SOULPEDL]

8 million shares have traded, so yes.

On this forum, lol.

 

[StealthP3D]

Has anyone bought more today?

I haven't bought any since $356.xx. I already had far more than any responsible person should own but when it went down to the mid $300's, I couldn't resist and had to pick up a couple hundred more.

That was only less than 6 weeks ago!

 

[phantasms]

Has anyone bought more today?

Picked up a short term holding in the past 48 hours equal to 40% of my long term holdings.

I regret this short term hold due to...ummm...”Twitter”....but can’t bring myself to sell. Easier to gamble when up by a lot I guess. I’ll lose it all in no time.

 

[GOVA]

I remains a Tesla supporter but disagree with your sentiment. Tesla's mission sends a message of respecting science and live/consume responsibly. The recent tweet make a lot of people who has been on board with that message disappointed.

My post you had quoted had nothing to do with anything you think, apparently. Let's just leave it then.

 

[Pezpunk]

On this forum, lol.

i'm oldschool, my Dad pounded the word "DIVERSIFY" into my head. Tesla has been very very good to me, but i never thought one stock would make up such a large percentage of my net worth. i COULD theoretically buy more -- i have plenty of stuff i COULD sell -- but not without the ghost of my dad haunting me in my sleep.

to answer you, no, i didn't buy today, but only because i'm as all-in as i can possibly be for a stock without incurring the supernatural wrath of my ancestors.

 

[dw4ngg]

I haven't bought any since $356.xx. I already had far more than any responsible person should own but when it went down to the mid $300's, I couldn't resist and had to pick up a couple hundred more.

That was only less than 6 weeks ago!

You’re right, Elon Musk is irresponsible

 

[JRP3]

Has anyone bought more today?

The more I've thought about Elon's tweet and what it may signify the less confident I've felt about the near term. Couple that with what I think is an irrationally inflated market at this time. I sold some shares in my IRA at $795.

 

[SOULPEDL]

Easier to gamble when up by a lot I guess.

That helps.

 

[ggr]

Has anyone bought more today?

I took some long-term gains on LEAPS I bought over a year ago, bought stock instead, and some gambling options. So numerically, I increased my dry powder /safety net and simultaneously increased my number-of-shares exposure.