Always nice to provide a synopsis of the article, because most of us here aren't going to give the clicks - neither Electrek, SeepingArthur or others of the same ilk.
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Tesla, TSLA & the Investment World: the Perpetual Investors' Roundtable
- Thread starter AudubonB
- Start date
Always nice to provide a synopsis of the article, because most of us here aren't going to give the clicks - neither Electrek, SeepingArthur or others of the same ilk.
Artful Dodger
"Neko no me"
I agree, money is not the problem, but has it been a drag? $165M interest expense last quarter says it is.
Can money be an accelerant? Accelerants play a major role in chemistry—most chemical reactions can be hastened with an accelerant. That just means that whatever was going to happen, happens faster.
I submit the brilliant and creative engineers at Tesla, under the steady hand of Zach and visionary guidance of Elon, will use that money wisely and well to ACCELERATE the adoption of sustainable energy.
WE NEED THIS DONE by 2050. (yes, all ICE off the road by then).
Cheers!
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Artful Dodger
"Neko no me"
No dilution whatsover when the money goes directly onto the balance sheet. Each shareholder owns a chunk of that new money. It's a net wash.
Amusing thought experiment!Just playing with some numbers here. Say Tesla does decide to 'ease the pain' of Index funds and others that benchmark to the S&P 500 by issuing some equity. How many shares, and for how much?
Well, forced buying seems to be about 16% of the float, let's call it 150M shares. That'd provide for the absolute minimum for 'required' purchases (depending on the 'weight' for TSLA in the S&P 500, which should be announced on Dec 11th).
If they do another 'at-the-market' offering starting on Mon, Dec 14 that is kinda rolling the dice, since the price could do anything. Alternatively, they do have time to prepare a prospectus and do a normal equity issuance and cap raise. Again, let's just say it's done at $560/share for S's + G's.
Zo, 150M shares * $560/share = $84B enough to retire all of Tesla's debt, build 3 twh/yr bty cell capacity, and all the vehicle and TE production required to use up those cells.
Telsa's Mkt Cap with 1.1 B shares at $560/share is $650B (which is what takes to complete all of Elon's CEO Comp. tranches).
Tesla could have $65B in cash on the balance sheet after paying all debts in full, paying Elon's comp, and covering the next 3 years of CapEx in advance. After that, the revenue stream from the production expansion comes online fully, and further expansion is self-funding, but Tesla's cash balance continues to grow.
All this would be in place BEFORE the 2020 Q4 Investor's Letter and Conference Call.
Ka-Ching.
But, as has been pointed out just now, whatever will Tesla do with all that money? They can't spend it all, not enough resources to buy. How can it be better invested than in Tesla?
On the other hand, it might be worth a lot to pull some haughty noses out of joint. Worth enough? Hardly IMO.
What follows is just speculation on my part.
I can't remember the exact mechanics, but its possible if someone as large as SoftBank was selling a large option position (as they said today they are exiting option positions), then the counter-party to that contract (the institution who sold them the calls in the first place) would be selling a large amount of shares that they were holding to remain delta neutral on the transaction.
I can't remember the exact mechanics, but its possible if someone as large as SoftBank was selling a large option position (as they said today they are exiting option positions), then the counter-party to that contract (the institution who sold them the calls in the first place) would be selling a large amount of shares that they were holding to remain delta neutral on the transaction.
Buckminster
Well-Known Member
Issuing shares is the definition of dilution is it not?
gabeincal
Active Member
Can you please explain how one sees level 2 option trades on thinkorswim desktop? I looked and could not figure it out.....
woodisgood
Optimustic Pessimist
Sold my 12/11 calls at the EOD, tried rolling them to 12/31 but didn’t execute. Oh well.
So that means we’ll gap up overnight. You’re welcome.
So that means we’ll gap up overnight. You’re welcome.
Sold my 12/11 calls at the EOD, tried rolling them to 12/31 but didn’t execute. Oh well.
So that means we’ll gap up overnight. You’re welcome.
I bought calls. We will gap down surely.
You are welcome and the pleasure is mine.
woodisgood
Optimustic Pessimist
In the race to be the superior contrarian indicator, we shall see who the Gods disfavor more.
Is that like the limerick mentioned in an earlier post?Accelerants play a major role in chemistry—most chemical reactions can be hastened with an accelerant. That just means that whatever was going to happen, happens faster.
Not if it's a split.
If you google your question there are youtube videos.Can you please explain how one sees level 2 option trades on thinkorswim desktop? I looked and could not figure it out.....
Giga Berlin
Some unconfirmed snippets from Teslas forest clearing request that got approved on Monday:
For those who missed it:
Tesla got the permits to install the paint shop today.
https://twitter.com/Gf4Tesla/status/1334180427037335555
And Tesla filed for permits to install power lines, lighting systems and aggregates in Body in White ( BIW ) section.
https://twitter.com/Gf4Tesla/status/1334194366580142082
One night with Elon does wonders.
Some unconfirmed snippets from Teslas forest clearing request that got approved on Monday:
- Tesla will spend 1B Euro on construction (not specified for which stage, nor if equipment cost is included - IMO for 1st stage incl equipment)
- 300M Euro already spent
- Because all permissions are only temporary (the final one should be done soonish), Tesla has to lock a security of 100M Euro
- Some idiots are appealing the permit, like last winter... lizards again... IMO they will not succeed.
- The harvesters have already begun work one day ago
For those who missed it:
Tesla got the permits to install the paint shop today.
https://twitter.com/Gf4Tesla/status/1334180427037335555
And Tesla filed for permits to install power lines, lighting systems and aggregates in Body in White ( BIW ) section.
https://twitter.com/Gf4Tesla/status/1334194366580142082
One night with Elon does wonders.
Just playing with some numbers here. Say Tesla does decide to 'ease the pain' of Index funds and others that benchmark to the S&P 500 by issuing some equity. How many shares, and for how much?
Well, forced buying seems to be about 16% of the float, let's call it 150M shares. That'd provide for the absolute minimum for 'required' purchases (depending on the 'weight' for TSLA in the S&P 500, which should be announced on Dec 11th).
If they do another 'at-the-market' offering starting on Mon, Dec 14 that is kinda rolling the dice, since the price could do anything. Alternatively, they do have time to prepare a prospectus and do a normal equity issuance and cap raise. Again, let's just say it's done at $560/share for S's + G's.
Zo, 150M shares * $560/share = $84B enough to retire all of Tesla's debt, build 3 twh/yr bty cell capacity, and all the vehicle and TE production required to use up those cells.
Telsa's Mkt Cap with 1.1 B shares at $560/share is $650B (which is what takes to complete all of Elon's CEO Comp. tranches).
Tesla could have $65B in cash on the balance sheet after paying all debts in full, paying Elon's comp, and covering the next 3 years of CapEx in advance. After that, the revenue stream from the production expansion comes online fully, and further expansion is self-funding, but Tesla's cash balance continues to grow.
All this would be in place BEFORE the 2020 Q4 Investor's Letter and Conference Call.
Ka-Ching.
I would bet that Tesla has their finger over the button for some stock issuance/split scenarios. Nothing wrong with having more cash on hand.
The main bottleneck (or limiting factor) for Tesla is batteries and battery materials. Miners of the raw materials for batteries do like contracts, and they would prefer contracts with companies who have strong balance sheets.
Artful Dodger
"Neko no me"
Tesla is a collection of 12 different startups, flying in tight formation. Why not make it 50? Do you think Tesla has the chops to deliver conpetetive or superior products in these sectors?
- Wind turbines (SRPM motor/generators, power electronics)
- Aviation (electric Regional Jets w. 400wh/kg in 2025)
- Global sealift (multi GWh scale batteries for cargo ships)
- Housing HVAC (super efficient home and commercial)
- Home and Commerical building (3-D printing/casting?)
- mRNA vacine design + production (cut 10 mths to 10 wks)
- high-speed wheeled transports which can work off-world
- food production w/o soil (vertical hydroponics ala Kimbal)
Agreed, that would be priceless.
Cheers!
This is behind their “Pro” paywall...
The part I could read, I couldn’t agree more: The list is scattered with growth stocks with “reasonable valuations,” like Alphabet, Apple and Tesla, the firm said.
Apple and Tesla are among Morgan Stanley’s top ‘secular growth’ ideas for 2021
The part I could read, I couldn’t agree more: The list is scattered with growth stocks with “reasonable valuations,” like Alphabet, Apple and Tesla, the firm said.
Apple and Tesla are among Morgan Stanley’s top ‘secular growth’ ideas for 2021
Very thankful that I could pick up some cheap calls today... Riding the next two weeks, while HODL all my shares the next 5-10 years.
Would a Dow inclusion trigger Dow funds to buy in like the S&P 500 inclusion?For Tesla to enter the share price weighted Dow Jones Industrial Average as its only automaker, another stock split would quite likely be required.
Would this be a bigger deal than the S&P 500 inclusion event?
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