Maybe not with it being a dividend. If there are no shares to buy the shorts are screwed. That is why the price jump is so much the shorts have got to cover before the record date. (this is my reading of the situation, I could be completely wrong).
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Tesla, TSLA & the Investment World: the Perpetual Investors' Roundtable
- Thread starter AudubonB
- Start date
Maybe not with it being a dividend. If there are no shares to buy the shorts are screwed. That is why the price jump is so much the shorts have got to cover before the record date. (this is my reading of the situation, I could be completely wrong).
I think everyone is excited based on the SP we've been seeing over the last 3-5 days. Positivism is a good thing
Why though? It doesn't make sense. The amount being shorted is exactly the same
Knightshade
Well-Known Member
If it's "really" a dividend, the shorts owe whoever they borrowed from 4 shares of stock. On dividend day.
Not "whenever they feel like covering the original share"
That's a massive difference.
Or could be the dude who wrote the press release and used both "dividend" and "split" even thought those are fundamentally different in a subtle but real accounting sense just screwed up.
I'm not so sure about this. A stock dividend, while in theory having basically an equal effect on stockholders as a stock split, it might have an extremely different effect on the holders of call options. Holders of call options do not receive cash dividends. I don't see any reason why they would automatically achieve the positive effect of a stock dividend. If I had a bunch of in the money or out of the money call options, I would research this very carefully. Same for those that are short puts. Very happy I closed my short put position a few days ago. Actually I need to double check on that.
CyberDutchie
Active Member
@DaveT called it a month ago .... almost.
I think Tesla probably considered 10:1 but went to 5:1 after this latest pullback, to be sure this will remain a 3-digit stock.
I think Tesla probably considered 10:1 but went to 5:1 after this latest pullback, to be sure this will remain a 3-digit stock.
I have to imagine that the timing of this has something to do with S&P inclusion and the fact that the S&P committee has been in touch with Tesla management. Why else move up the date of it when Elon already said it would be a topic for the Annual share holders meeting. I was kind of convinced we weren't getting S&P inclusion until Sept. Not so sure about that now.
My understanding is that you split the stock because there is likely to be additional SP increase. No one splits stock if the long term trend is down.
RobStark
Well-Known Member
At any CCS charging station.
Probably quicker than Tesla.
Not all CCS stations are 150-350 kW but neither are all Superchargers 250 kW.
Bet TSLA
Active Member
Quite so. You are completely wrong.
The talking heads on CNBC thinks the share price could continue up on the split even if it's not logical:
https://twitter.com/CNBCFastMoney/status/1293293723191779332
https://twitter.com/CNBCFastMoney/status/1293293723191779332
Knightshade
Well-Known Member
It's exactly right if this is a dividend, not just a split.
Cash dividends work the same way- the shorter of the stock owes the cash dividend to whomever he borrowed from on the dividend pay out date.
"Share price is too high IMO"
Solution: divide it by 5?
Elon Thoughts (tm)
Solution: divide it by 5?
Elon Thoughts (tm)
Mo City
Active Member
Before celebrating, I want to see how much of the increase holds tomorrow morning.
Maybe another shoe drops tomorrow evening.
Maybe another shoe drops tomorrow evening.
Tes La Ferrari
Active Member
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