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

[Robocop]

Was watching the graph drop, sold 21 shares, put in a limit buy, bought 22 shares back for the same price. This usually goes against me, but it worked this time.

 

[jkirkwood001]

I'd like to see one in India. Large population, high pollution, high import duty on vehicles, skilled workforce.

I agree. But they'd need to produce a much cheaper, less-premium model to sell well enough in that market to dent the gross carbon... maybe one designed at Giga Shanghai?

 

[agastya]

Why would the board play their game? Why help them getting these shares since they were betting on a stock price drop? Why would a 1% dilution be for the current shareholder profits since Tesla will generate the cash flow anyway. I'm not sure I follow.

Coz you have to make it a win win situation. It's never a zero sum game at this level - Tesla and S&P both need each other to be in a symbiotic relationship. Even Elon in the last conference call specifically called out how this was the 4th consecutive quarter in the black, wouldn't have done that if he and the board don't pay attention to the S&P figuring out things.

Remember, It's real bad for S&P, they usually have some holdings in S&P400 and S&P600 when they move someone to the S$P500. They don't for TSLA.

TSLA is a very hard pill for them to swallow.

 

[chrsk]

Of course its a bad thing.
They will have to start building another gigafactory somewhere.
So many factories, so little time.

Being up 7-8% in premarket without any news is insane...

Will be interesting to se where we go from here.

 

[Artful Dodger]

Macros a little down...looks like we will be sailing into some headwinds today.

Not the NASDAQ-100:

US Tech 100 Sep 20 12,193.50 +79.50 +0.66% 09:22:53

 

[Chickenlittle]

I hope we all don't start posting our exact personal gains here like new money people park a $200K car sideways in a parking spot, the ones people key. I know it's an investors forum but let's show a bit of class here, watch the disagrees for a "new money" VS "old money" poll. Class folks....



Just wait for the repair bills on an Audi EV

I remember getting an Audi A8 15 yrs ago. The car was damp after each rain. Took it to dealer and they tried to deny warranted by asking why I took seal Orr

Makes me wonder if it's yet another head-fake by the big boys to scare off the retail investors who don't really know what it means.

so far every capital raise for tesla after it’s done has spurred on its rise. Would not bet it won’t this time

 

[Ericna]

Indeed, and the ~10M odd shares in this Cap Raise feels more than vaguely like the number of phantom short shares that need to be located and purchased in the next 2 days.

The fact that it's being done as a 'distribution' at Market rates through the usual list of suspects is a dead giveaway. I expect all those shares are already spoken for.

Well played, Elon Zack and Hiro, well played.

Could you re-make your above point more verbosely for those of us who are not in lock step... (please)

 

[ggr]

The relationship between (A) and (B) is simply a debt. If before the split that debt was a debt of 1 share at say $2,500. Now after the split, this debt simply gets adjusted to 5 shares at $500.

If (A) was happy to lend out 1 share worth $2,500, in all likelihood he will also be happy to lend out 5 shares worth $2,500.

But this is where the wheel falls off, because (A) only has one share. He never got the other 4 shares, because he wasn't a shareholder of record. So he can't be the one who lends them to (B). Pre-split, there were ~10.6M such (A) shares that didn't get the other dividend shares. But the person A needs to be made whole somehow. (B) has to buy or borrow from someone else.

Now this morning we discover that Tesla is issuing another $5B or so worth of shares, coincidentally that's about 10M shares. I wonder why? At least now the market has enough shares available that all the shorts can borrow again.

By the way, all the shorts, naked or otherwise, face the same problem. It's just bigger for the naked shorts, they have to find 5 shares, not just 4.

 

[Artful Dodger]

Wow this drop is insane! I really don’t understand how anyone can think $5B more in the bank is a bad thing....

Pre-Market Volume: 7,827,548

That'd be 2.56+M in "pre-Split" days.

Off da chain...

 

[Todd Burch]

Back to green again. Can't hold her back, baby.

 

[Blue horseshoe]

Was reading a post about battery day improvements and future vtol plans and I had a thought: I see a vtol aircraft happening in the future, but what about a hovercraft type vehicle?

A people/cargo transport that is tunnel capable and would the air cushion assist in tunnel transport? Could higher speeds be reached (google search states high speeds of 85mph for hovercraft)?

Such a vehicle could also ferry people and cargo to the starship platforms SpaceX wants to place out to sea.

A cybercraft version could take us one step closer to a hammers slammers-like tank (David Drake has a series on these tanks)

 

[traxila]

As usual went to buy more at 488 and by the time I actually enter the order.... gone.

 

[Driver Dave]

Back to green again. Can't hold her back, baby.

The market has digested the news, burped, and continued forward.

EDIT: Maybe not...

 

[lafrisbee]

NASDAQ futures are up 0.91% which does not happen often. Obviously this would suggest a strong opening in a few hours.

Nighty night unless I'm unable to doze off prior to pre-market in 25 mins.

how was your nap?

 

[Nocturnal]

I know some are speculating that this might put a dent in the hopes of a squeeze, but also consider that some people are thinking that inclusion is not going to happen. I've had doubts myself. So this should renew the idea that it is happening and provide an offsetting impetus.

Edit, what's this strange color on the chart? It's like purple but they took all the blue out??

 

[traxila]

As usual went to buy more at 488 and by the time I actually enter the order.... gone.

Got them!

Probably a bad sign guys. Am ultimate contrarian indicator. Look for testing lower support.

 

[mongo]

But this is where the wheel falls off, because (A) only has one share. He never got the other 4 shares, because he wasn't a shareholder of record. So he can't be the one who lends them to (B). Pre-split, there were ~10.6M such (A) shares that didn't get the other dividend shares. But the person A needs to be made whole somehow. (B) has to buy or borrow from someone else.

Now this morning we discover that Tesla is issuing another $5B or so worth of shares, coincidentally that's about 10M shares. I wonder why? At least now the market has enough shares available that all the shorts can borrow again.

By the way, all the shorts, naked or otherwise, face the same problem. It's just bigger for the naked shorts, they have to find 5 shares, not just 4.

The wheels stay attached for normal shorting:
There was a share, A had it originally.
A's share was lent to B
A's ledger says they have lent 1 share and B's says they have 1 share.
The original share turned into 5 new shares
A did not directly lend the 5 new shares, but they exist due to the original share.
A's ledger now says they have lent 5 shares and B's says they have 5 shares.

 

[Favguy]

In light of the share issue announcement and following yesterdays meteoric rise, cooling things by starting the day with a little dip, and maybe even a flattish continuation for the day is extremely healthy as far as I'm concerned

Edit: Just can't keep this thing down, I think there's a more than even chance we'll actually end the day green!

 

[bramsvs]

Teska selling $5B Stock!!

Inline XBRL Viewer

SEC Form 8-K:

"Item 1.01
Entry into a Material Definitive Agreement.

Equity Distribution Agreement

On September 1, 2020, Tesla, Inc. (“Tesla”) entered into an equity distribution agreement (the “Equity Distribution Agreement”) with Goldman Sachs & Co. LLC, BofA Securities, Inc., Barclays Capital Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC, Credit Suisse Securities (USA) LLC, SG Americas Securities, LLC, Wells Fargo Securities, LLC and BNP Paribas Securities Corp., as sales agents (each, a “Sales Agent” and collectively, the “Sales Agents”), to sell shares of common stock, par value $0.001 per share, of Tesla (the “Common Stock”) having aggregate sales proceeds of up to $5.0 billion (the “Shares”), from time to time, through an “at-the-market” offering program (the “Offering”)."

..or not:

Tesla is not obligated to sell any Shares under the Equity Distribution Agreement and may at any time suspend solicitation and offers under the Equity Distribution Agreement.

 

[Ericna]

Correct, here they can feed the market with more shares when they want, at the current market price.

Personally I think it's genius.

Why is it genius? (thanks!)