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

[Papafox]

Do you think that 5B would be enough for that?

Or is it the sentiment that matters, that TSLA is willing to play ball with the index funds at all?

The amount $5 billion would not likely be enough, and the speculation is that Tesla would do additional cap raises as necessary to keep the inclusion from becoming a huge squeeze.

 

[MTL_HABS1909]

I'd love to get insight into this as well. The only question then remains - when do we get support for the stock price in this free fall?

TSLA is such a momentum stock that something will have to happen/be announced for it to completely reverse course or we may keep dropping for a few days.

 

[Papafox]

I'd love to get insight into this as well. The only question then remains - when do we get support for the stock price in this free fall?

Once S&P 500 inclusion is announced for Tesla, the tables turn and there will be upward pressure on the stock price.

 

[elasalle]

I'd love to get insight into this as well. The only question then remains - when do we get support for the stock price in this free fall?

When Battery Day Excitement takes over and/or S&P is announced. Either way, I think that will happen only after next week.

(We also should have a good Q3 ahead of us)

 

[EdKan]

I know it's a matter of degree, but worth noting that AAPL and FB are down 5% and 4% respectively......

 

[MTL_HABS1909]

Can you imagine what today would be like with no uptick rule in effect.

 

[Singuy]

Me: How much of my paper money gets set on fire today?

Portfolio: "Yes"

 

[Joe F]

So what happens if we're down 10% and the uptick rule is already in effect? No shorting for a year?

 

[M|S|M MYP]

Had to add 23 at $405...dry powder put to good use.

 

[elasalle]

If not for the Share Dividends, I think MM/Shorts would have had SP around $1000-1200 around Labour day.
But we are now hovering at 2K.
So still good from this perspective.

 

[MTL_HABS1909]

Had to add 23 at $405...dry powder put to good use.

I don’t want to jinx it, but $405 seems to be the floor. It bounced off it both yesterday and so far today.

 

[Tslynk67]

Tech stocks sh!t the bed, Nasdaq was nearly down 4%

$TSLA holding up pretty well IMO, given the current play.

Edit - $TSLA no longer propping-up my watch list!!

 

[H Mak]

Finally my broker, Equiniti has added the shares. I complained to them and have received an apology. I also posted a poor review on Trustpilot. I have received another apology in reply to my review and they said they are going to contact me because they don't want to lose my business. Too late for that I'm afraid.

In the meantime I've opened an account with IG and just bought a few TSLA at $411 to try out the functionality. It feels like a big improvement.

Quoting myself and I promise this will be my last word on the subject, but just after posting this I got a call from Equiniti. It was a helpful chap who was very apologetic and said he understands how frustrating it has been. Added to which he is giving me £200 by way of apology for the inconvenience. That was a nice touch.

 

[Chenkers]

Agreed. Elon Musk said in the video in Berlin:

It's a radical redesign of the core technology of building a car. And some of this when I do Battery Day later in September I'll talk about what we're going to be doing here in Berlin but it will be the first time that there is going to be a transformation in the core structural design of the vehicle. It's quite a big thing.​

My read on this is a revolutionary and faster way to install batteries in the structure of the vehicle that will drive down production costs. Else why would he talk about it for Battery Day? Batteries and drive unit(s) are the "core technology" of a BEV, no?

Elon only said he'd talk about some of it on battery day. My take is that he's talking about both the use of the large casting machines and also cell to pack design (no modules). The current Y is going to get a single piece rear casting. Add a couple more presses and you can get a single rear, single front and single side castings. Not too dissimilar to their patent but 4 individual castings. Connect these 4 castings together with the cell to pack battery structure and you have the complete superstructure of the car. I'd call that a "transformation in the core structural design of the vehicle".

 

[Singuy]

Tech stocks sh!t the bed, Nasdaq was nearly down 4%

$TSLA holding up pretty well IMO, given the current play.

Yup Tesla is doing extremely well. Everything else tanked pretty drastically after market opened. Tesla haven't tanked much further than AH.

 

[GOVA]

Meh, it is all good. Actually it is great. The revelation about complete structural re-design Elon mentioned is JUGE. Huge I tells ya. The battery day will be awesome.

HODL as always.

 

[Oil4AsphaultOnly]

Playful but frankly being a bit of a dick there. If this was me I would be super angry. OF COURSE there should be a confirmation to spend that sort of money. Tesla are potential pissing off a lot of people there for zero gain. He should have apologised, refunded the dude immediately and pledged to fix the app.

I would've been more rude at that obvious lie. In this day and age of screen locks, who in the world butt-dials anymore? A screen lock is the user's responsibility. That poser was just contriving a complaint about not having a purchase confirmation.

 

[lafrisbee]

Another thing to remember is that building factories is a learning experience for TESLA. Look at the diminishing cap ex every-time they build a factory. Crazy software like iteration on manufacturing processes. Bravo Tesla
So it makes sense to not build all of them at the same time. The trend for Tesla has been to learn from each built factories.

I remember a couple of years ago Tesla bought a company that designs/engineers companies?
EDIT: Manufacturing Facilities not "Companies."

 

[vikings123]

I'd be curious to hear reactions to this Tweet by JRP007. In a nutshell, he's arguing that much of the buying in recent weeks was from hedge funds hoping to engineer a squeeze when S&P500 index funds learn they must acquire TSLA. When Tesla announced the details of their $5 billion cap raise, it became apparent that Tesla was going to do what's necessary to keep a massive squeeze from taking place. Since Tesla's cap raise announcement, we've been seeing a decline in the stock price, which is some of these hedge funds unwinding their positions (still at a profit for most) because the big squeeze plan is going to be foiled by Tesla.

Even if you assume Tesla's move spooked the hedge funds the move yesterday seems like a bit of an overreaction. It is possible the split was designed to reduce the squeeze but nobody expected the hedge funds and other momentum investors to front run this in such a big manner. And then Tesla made the power move? It makes sense but you have imagine this request(to use the ATM offering to avoid a squeeze) came from S&P.

Here is something interesting(italics below) I found from an article about ATM offerings. The more I think about this the more it seems like this was a request from S&P. I also think S&P will give funds enough time to make their purchases and spread it out by each agent selling at a different time. It may not have been a move from Tesla per se but it does come across like that.

Engaging multiple ATM agents allows a company to have several options when considering brokerage platforms to use throughout the term of the ATM program. Notwithstanding having access to multiple platforms, the company cannot sell its securities under the ATM program with more than one ATM agent at the same time.

With Tesla there are no precedents so really tough to say what might be going on. I guess we will find out soon enough.

So really we have two theories so far; The Naked short covering and Hedge Fund front running. If I were to pick I would go with the first one. Or maybe a combination of the two.

 

[Joe F]

I would've been more rude at that obvious lie. In this day and age of screen locks, who in the world butt-dials anymore? A screen lock is the user's responsibility. That poser was just contriving a complaint about not having a purchase confirmation.

Worse than that: Screen lock, open app, select "upgrade screen" then push the upgrade now button. That's some selective cheeky action there.