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

[Nocturnal]

Hey, did you guys notice that are at back at $1500? Who could have imagined that?

 

[marvinat0rz]

Come on, it's just 1,500. You've done it at least a hundred times, literally.

Maybe with a bit of luck it'll do it a few more times in September

 

[Vad42]

Judge grants preliminary injunction requiring Uber and Lyft to stop classifying drivers as contractors

Uber CEO says its service will probably shut down temporarily in California if it's forced to classify drivers as employees


Hm, good time to start the non-autonomous Tesla Network as Ark has been suggesting? Plenty of Teslas in California..

Wouldn't TESLA have similar problem? I doubt they would want to classify Tesla Network drivers as employees either...

 

[woodisgood]

Considering:
Expanding the pool of buyer should reduce volatility
Increasing costs of trading should help to scratch index funds' back
I bet that you're right
Anyone wanna bet on me being right about @ggr's being right?

If S&P wanted the split, wouldn’t they want inclusion to happen after the split went into effect?

 

[LTC_RRR]

Mo

Well, boys and gals, it look's like we can camp out at $370 again! I'll bring a pot of beans. Yee haw!

Mongo just pawn in game of stocks!

 

[dc_h]

Hey, did you guys notice that are at back at $1500? Who could have imagined that?

I did happen to notice. Nice round number.

 

[Krugerrand]

No celebrating from me today. We're just in the meat of the battle now. Today, my battle line is advancing. Yesterday, it was retreating.

We are still $125+ below where Tesla was just about the only automaker in the world to post a profit. I'm pissed about it, and I'm taking names.

It is my life's work to take money from the dirty shorts. The big guy upstairs came to me in a vision last night and told me so. I'm going to do that by accumulating more shares and holding them long-term whenever I can.

And I'm not gonna stop until my island is bigger than Krug's. Unfortunately I'm way behind, because at the IPO I didn't buy as many shares as my instincts told me I should have. I'm a little bit risk averse. Forgive me, it's my Achilles heel.

I'm a terror for the shorts. And my ugly mug is going to visit them in their nightmares. I might even terrorize Spiegel on the toilet. Not sure about that one though--it would be a little awkward for both of us.

Well, you got that $125 back as of this moment. Would have been nice if you’d gotten pissy sooner, but I’m sure you’re working on bettering yourself.

In terms of island size, we all know it’s not the size of the island that matters but rather the magic happening on it. My island is going to have lions and tigers and farting unicorns. Good luck topping that.

 

[StealthP3D]

Considering:
Expanding the pool of buyer should reduce volatility
Increasing costs of trading should help to scratch index funds' back
I bet that you're right
Anyone wanna bet on me being right about @ggr's being right?

I would like to believe that but even if S&P was behind this split, I don't think they would announce tonight.

I hope I'm wrong but I'm thinking early September.

 

[floydboy]

Hey, did you guys notice that are at back at $1500? Who could have imagined that?

It even poked through the veil for a second to $1500.55 before getting smacked back under.

 

[EVortex]

Thinking about the psychological impact of the stock split. Pre-split an SP of $5,000 seems very large and probably several years away. Post-split SP of $1,000 seems more reachable in a shorter timeframe. The new climb from $300 to $1,000 will be interesting and very lucrative for the longs.

 

[bpjod]

One aspect is that if a 5:1 will really hurt the shorts why then not make it a 10:1 or 20:1 instead? That would hurt them even more. Wouldn't others have done it before if it was that easy? Remember the guy that was shorting Herbalife? If they could have just made a 100:1 split to make him go away why wouldn't they have done so.

So I have no idea whether or not this split actually affects short sellers. If it does, it’s just that they have to make good on their naked shares so it’s the number of shares and price per share before the split that affects them, not the after split number and price. Therefore it’s inconsequential whether it’s a 2:1 split or a 69:1 split.

However, with a smaller split, it will take less time until it becomes reasonable to do another split in the future. Then they can have a split every year or two to flush out the shorts rather than having to wait 10 years to do it again.

Personally I feel much better when I can flush with regularity.

 

[floydboy]

I would like to believe that but even if S&P was behind this split, I don't think they would announce tonight.

I hope I'm wrong but I'm thinking early September.

Agreed. Gotta allow time for the requisite handwringing.

 

[Curt Renz]

Craig Johnson is a managing director and technical strategist at Piper Sandler (formerly Piper Jaffray). He was a regular guest of mine on my old TV show, and still sends me his newsletters. In early 2003 he recommended TSLA, which led to my first purchase at $38.

Craig’s colleague Alexander Potter has a BUY rating on TSLA with a price target of $2400.

In Craig's monthly research pamphlet this morning, TSLA appeared in a listing just as it did when I was inspired to buy in early 2013. The + means technically positive.

↑ Automobile Manuf., Major TSLA (+)

 

[dc_h]

German situation:

My bank (CortalConsors) ist not yet sure how the stock dividend will be treated.Let's see if they come back to me.

The Landesamt für Steuern (IRS) suggests, it has to be taxed as dividend income.
This would be a catastrophe because the loss in stock value cannot be used to offset the dividend gains.

Unless the taxpayer can prove, that it was a stock split. This has to be proven according to the foreign law.

In 2014 Google had a similar situation and only after months, if not years of fighting, the IRS finally gave in. But the banks had deducted the 25 % tax; in the end the taxpayers got their money back - after years of waiting. So good luck with that.


My 'solution':

Prior to the 21st I will sell all my TSLA and sell way OTM Sept Puts. I am looking at $ 3,000 strikes. Then I can just wait to be putted or change back to shares after 24th.

Unfortunately the appreciation of my shares will be taxed. The rebought shares will have a new tax basis.

I'm sorry to read this. I thought the past 50 pages of crazy questions about how a stock split works was a bit ridiculous and then read the ridiculous response of your tax authority is terrible.
I do think you should double and triple check this stock split. The Google situation may have been more complex, since it was turned into two classes of stock, so post split, you owned different stock.

Good luck!

 

[EVMeister]

Craig’s colleague Alexander Potter has a BUY rating on TSLA with a price target of $2400.

Before or after the split?

 

[Todd Burch]

Well, you got that $125 back as of this moment. Would have been nice if you’d gotten pissy sooner, but I’m sure you’re working on bettering yourself.

In terms of island size, we all know it’s not the size of the island that matters but rather the magic happening on it. My island is going to have lions and tigers and farting unicorns. Good luck topping that.

Methinks we're still about $100 below where we closed before the ER. So my pissy level has not eased up yet.

My island will be better. Why? Because I did my research.

Just unicorns? Psh. My island will be the Noah's ark of gastrointestinally unstable mammals.

 

[Chickenlittle]

Ok not on here much but I did hear (what I would classify as rumor for now) that this “split/dividend” is in preparation for a split of tesla into car business and other electrical manufacturer. Anyone else have a source for this?

 

[jerry33]

Guys, you are mixing up a dividend event and a split event

And this is a dividend event.

 

[Todd Burch]

Ok not on here much but I did hear (what I would classify as rumor for now) that this “split/dividend” is in preparation for a split of tesla into car business and other electrical manufacturer. Anyone else have a source for this?

Never heard of such a thing. One benefit to this is it would draw attention to the fact that Tesla is more than just an auto company. Y'know, cause most analysts out there still discover new levels of moron on the daily.

 

[Boomer19]

German situation:

My bank (CortalConsors) ist not yet sure how the stock dividend will be treated.Let's see if they come back to me.

The Landesamt für Steuern (IRS) suggests, it has to be taxed as dividend income.
This would be a catastrophe because the loss in stock value cannot be used to offset the dividend gains.

Unless the taxpayer can prove, that it was a stock split. This has to be proven according to the foreign law.

In 2014 Google had a similar situation and only after months, if not years of fighting, the IRS finally gave in. But the banks had deducted the 25 % tax; in the end the taxpayers got their money back - after years of waiting. So good luck with that.


My 'solution':

Prior to the 21st I will sell all my TSLA and sell way OTM Sept Puts. I am looking at $ 3,000 strikes. Then I can just wait to be putted or change back to shares after 24th.

Unfortunately the appreciation of my shares will be taxed. The rebought shares will have a new tax basis.

i don’t see swift message with corp action details from CBF (Clearstream - german market) yet, only preliminary one from SIS for swiss market and that doesn’t mention taxation

will try to find out more before you make a fateful decision

my guy in switzerland that handles corp actions says the germans aren’t taxing the split.
@Johann Koeber

i’d make sure before you create a taxable event for yourself by closing any position.