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

[Artful Dodger]

"GAMMASPLODES". A new word to me, and I like the sound of it!

Edit: SP Is Gammasploding atm

No chance whatsoever for a 25% share of TSLA on the S&P 500, or any other single ticker symbol for that matter.

The rules of the S&P DJI state that no single equity can exceed 10% of the total Index. Both AAPL and MSFT are currently over 6% and might be capped soon enough, likely well before TSLA reaches its 10% ceiling.

In the limit however, the S&P 500 becomes the S&P 10. The SINGULARITY is upon us...

Cheers!

Moderator Edit: See "Non-Mod" post #302,637, below.

 

[Curt Renz]

What is a peninsula house? Is that something that’s “trending” these days? Do I need one?

Since you didn't post a winking emoji, an answer may be in order. It's the peninsula between the Pacific Ocean and San Francisco Bay connecting the cities of San Francisco and San Jose. Just southeast of its center is the Tesla headquarters in Palo Alto by Stanford University. The southeastern half of the peninsula is called Silicon Valley. Very posh, with pricey homes and loads of Teslas. It's not that everyone should know about the peninsula, but I lived in Palo Alto during the mid-eighties when if was more affordable.

 

[Prunesquallor]

No chance whatsoever for a 25% share of TSLA on the S&P 500, or any other single ticker symbol for that matter.

The rules of the S&P DJI state that no single equity can exceed 10% of the total Index. Both AAPL and MSFT are currently over 6% and might be capped soon enough, likely well before TSLA reaches its 10% ceiling.

In the limit however, the S&P 500 becomes the S&P 10. The SINGULARITY is upon us...

Cheers!

So what happens? are they delisted?

 

[MP3Mike]

The rules of the S&P DJI state that no single equity can exceed 10% of the total Index. Both AAPL and MSFT are currently over 6% and might be capped soon enough, likely well before TSLA reaches its 10% ceiling.

What happens when they hit 10%? Are they allowed to let it run but not buy more? Do they have to start selling them and buying other stocks in the index?

 

[BitJam]

This song is dedicated to all those hard working money managers on Wall Street from TSLA.

Perhaps this version is more apropos:

Elon commented "The video is not CGI".

 

[Artful Dodger]

im struggling with this same decision.

gives them just too much control over the situation if the stock price heads south for whatever reason.
they can hike the rates, hike the margin requirement, call in$ or liquidate shares to satisfy the increased requirements, even apply an exposure fee if you’re concentrated in tsla - (the last two depending on your brokers treatment). if the stock goes down enough, and even if you only borrowed 30% of what is ‘available’, and they start tinkering with each of those levers, that loan (thus some of my shares) can be in jeopardy pretty quick

Just buy protective Puts for the term of the loan. IE: if you're borrowing 25% of your present share equity, by Puts with a Strike Price 25% of the current SP. If you've only borrowing 10%, then buy Strikes at 10% of the SP, etc.

Gets real cheap to buy insurance once you're buying 3 or 4 contracts for each 100 shares you're protecting. About 2.5% equivalent interest rate, but basically they'd only get the increased value of your Put contracts in a Market crash scenario, while you'd get to keep the underlying shares (hopefully, they bounce back afterward).

Cheers!

 

[Prunesquallor]

well, no one can say Uncle Leo isn’t transparent.

https://twitter.com/x/status/1455990181727662085

 

[Curt Renz]

Perhaps this version is more apropos:

Elon commented "The video is not CGI".

Neither is this CGI.

 

[Artful Dodger]

And just like that, a giant bear trap on the weekly.

Yes, FINRA reported 61.4% of all retail trades in TSLA were marked "Short" today, which is the highest percentage of shorting by retail since April 15, 2020. Yeah, that's gonna leave a mark.

Cheers yo the Dawgz!!

 

[Prunesquallor]

Geeez. That’s a long haul. Tesla really needs a factory in Europe…

https://twitter.com/x/status/1455998337195380737

 

[bkp_duke]

At Hertz in at DFW. Teslas arrived yesterday they said. Few days to get plates and prep them for rental.

 

[CHGolferJim]

At Hertz in at DFW. Teslas arrived yesterday they said. Few days to get plates and prep them for rental.

Makes me wonder if Hertz will be handwashing all their Teslas (2 buckets)?

 

[inconel]

Makes me wonder if Hertz will be handwashing all their Teslas (2 buckets)?

And get Paint Protection Film applied on their Teslas?

 

[thesmokingman]

At Hertz in at DFW. Teslas arrived yesterday they said. Few days to get plates and prep them for rental.

How many did they get?

 

[Artful Dodger]

Wow! What a finish! New ATH, new ATH close.

Don't forget the other two ATHs:

• ATH Open: $1,177.33
• ATH Intraday Low: $1,152.62

In summary, on Wed Nov 3, 2021 TSLA set new record all-time highs in all four categories that NASDAQ tracks.

Cheers to the Longs!

 

[nctalkinghead]

I agree with @DaveT . A relative of mine worked as a CFO for a start-up in the food & beverage industry. After 6 years, they grew to $1B in sales and the Private Equity firm bankrolling them insisted they bring in an experienced CEO to compliment the Founder. They hired a big gun with an impressive resume from a top Food & Beverage company (think Pepsi, Coke, Nestle etc). Once this CEO joined, the number of meetings increased, the number of people attending the meetings increased, the number of PowerPoint presentations increased . . . in fact, presentations had to be sent 24 hours in advance of a meeting as a "pre-read". The CEO implemented many policies and procedures to ensure additional reviews and sign-offs.

When the CEO was interviewed, he demonstrated his "start-up" skills as he had led several successful skunk works projects at the legacy company . . . but once you work at a large legacy company, there are some skills and habits that become difficult to unlearn.

Sales suffered and the CEO was canned 18 months later.

One of my favorite stories:
New CEO comes in and begins by taking his Production Foreman and going to the factory floor to see who the deadbeats are. Everyone working very hard, except for one young man standing by the door with his hands in his pockets. CEO charges over and demands "How much money do you make a week?" "I guess about $200," is the reply from the startled man. CEO pulls out a roll of bills, counts 8 $100's off and hands them to the man. "Here's a month's pay and you are fired!" As the young man walks out the door, the CEO asks his Foreman "what was that guy's job?" Foreman replies "He's the Domino's Pizza delivery guy."

 

[Artful Dodger]

What's Uncle Leo been up to?

5 hrs ago:

KoGuan Leo on Twitter: "Tesla bulls, now I have 7,195,611 physical shares of Tesla, bought recently 184,000 more shares. Thus, 105,000 shares more to go by January 2022. Promise made, promise kept." / Twitter

 

[thesmokingman]

Leo is such a baller!

I wish he'd adopt me.

 

[M|S|M MYP]

I agree with @DaveT . A relative of mine worked as a CFO for a start-up in the food & beverage industry. After 6 years, they grew to $1B in sales and the Private Equity firm bankrolling them insisted they bring in an experienced CEO to compliment the Founder. They hired a big gun with an impressive resume from a top Food & Beverage company (think Pepsi, Coke, Nestle etc). Once this CEO joined, the number of meetings increased, the number of people attending the meetings increased, the number of PowerPoint presentations increased . . . in fact, presentations had to be sent 24 hours in advance of a meeting as a "pre-read". The CEO implemented many policies and procedures to ensure additional reviews and sign-offs.

When the CEO was interviewed, he demonstrated his "start-up" skills as he had led several successful skunk works projects at the legacy company . . . but once you work at a large legacy company, there are some skills and habits that become difficult to unlearn.

Sales suffered and the CEO was canned 18 months later.

100% agree...i worked at a private corporate housing company in IT for 8 years, company got sold to a company in Singapore (wanted entry into the US market). Brought in new mgmt and started having meetings to discuss meetings to discuss the meetings we had 2 hours ago. Safe to say, 9 months later, everyone who had built the company left for greener pastures. I left shortly after, even after they gave me a 50% raise to pick up the slack of the ones that had left. $ isn't everything, especially when you dread going to work daily.

 

[AudubonB]

No chance whatsoever for a 25% share of TSLA on the S&P 500, or any other single ticker symbol for that matter.

The rules of the S&P DJI state that no single equity can exceed 10% of the total Index. Both AAPL and MSFT are currently over 6% and might be capped soon enough, likely well before TSLA reaches its 10% ceiling.

In the limit however, the S&P 500 becomes the S&P 10. The SINGULARITY is upon us...

Cheers!

Moderator Edit: See Mod post # , below.

Non-Mod post:
I have here in my office the most recent (June 2021) official documentation from S&P DJ Indices:

• U.S. Indices - Methodology
• Equity Indices Policies & Practices
• Index Mathematics

and I cannot find in any of their combined 180 pages any such rule. And, while Lack of Evidence ≠ Evidence of Lack (ie, I may have missed it), there is direct evidence to the contrary. The Rules state that, inter alia, an Index may be a Market Capitalization Index (MCI) or a Capped Market Capitalization Index (CMCI). They further define a CMCI as an index that indeed DOES have such a limit. They specifically define the S&P 500 as an MCI, not as a CMCI.

Summary: I believe no such 10% rule exists for the S&P 500. As always, happy to be shown otherwise.