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

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Maybe a noob question, but why would these banks participate in this cap raise, when they can just buy the stock on the open market? Im sure they could strategically buy the shares without moving the price too much.

The banks don’t buy the stock, they sell the stock and earn a commission doing so. An underwriter technically buys the offering but then turns around immediately and sells the stock to their clients at the offering price. They each have a small army of brokers selling the offering today.
 
For Perspective:
If we close above $780 today, it will be TSLA's highest close ever with the exception of the grandeur of Feb 4.
The march higher continues.....


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The banks don’t buy the stock, they sell the stock and earn a commission doing so. An underwriter technically buys the offering but then turns around immediately and sells the stock to their clients at the offering price. They each have a small army of brokers selling the offering today.
So why would the clients not buy on the open market? Are they getting some sort of discount or benefits?
 
The Shortzers will claim it was all a plot.

If this is a plot. Then looking back couple of years Elon plot the biggest bear trap in history and rewarded his supporters handsomely while strengthened company financials.

For any shorts who believe this is a plot and staying short is just insane.
 
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So if I understand the cap raise news correctly, the share price for the cap raise is set by today's market close price.
So wouldn't it be in the interest of the MMs / the banks underwriting the raise to push down today's closing price as much as they can ? Or it really doesn't matter for them as they get fixed fees for the total amount raised independent of the number of shares ? Lower price would benefit the people getting the new shares, but I guess those are the customers of the banks.
 
Seems the ants managed to mount a successful protest, and stopped at least for a day the planned tree cutting operation at Giga Berlin.

Twitter

EU crap at its finest...

The delay just seems to be about getting the second quote for the price and getting both sides to sign off on it. Wildlife no longer appears to be any sort of obstacle.
 
The banks don’t buy the stock, they sell the stock and earn a commission doing so. An underwriter technically buys the offering but then turns around immediately and sells the stock to their clients at the offering price. They each have a small army of brokers selling the offering today.
It is a fair guess that the increased stock price is the reflection of the overwhelming interest from buyers.