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

[Big Time]

This 2nd split is what I have dreamed of for a year, If we go >= 5:1 and the valuation becomes inline with what reality is($2000+ per share) this will allow me to hold on to a sizable amount of shares and still be able to achieve financial freedom.

Sorry if I got overly bearish when we dropped into the mid 700s and called for potential 600s. That was wrong.

 

[EVMeister]

Sorry if I got overly bearish when we dropped into the mid 700s and called for potential 600s. That was wrong.

All is forgiven.

 

[Ogre]

If you are short TSLA, the stock dividend is the same as a cash dividend, in that the short has to deliver, to whom the stock was shorted, the dividend. I.e., if it is a 5-for-1 stock split, 4 shares have to be delivered; in the case of a cash dividend, the amount of cash has to be delivered. It's obviously a lot easier to deliver cash than to scrape up 4 shares of stock for every share that is shorted. So, no, they are not the same.

Thank you for a nice, concise explanation of why this burns shorts.

I knew that was the perception but didn’t quite get why until this.

 

[ninpb]

The weekend of the 2020 split, Vanguard 5x my shares but hadn't divided the price for a few hours. That was nice.

 

[Nocturnal]

The weekend of the 2020 split, Vanguard 5x my shares but hadn't divided the price for a few hours. That was nice.

The same happened to me. It was like seeing the future.

 

[Mengy]

The weekend of the 2020 split, Vanguard 5x my shares but hadn't divided the price for a few hours. That was nice.

Same happened to me. I took a snapshot of my new "balance" because I thought it was an actual cash value I'd never see again. I did not know how wrong I was!!!

 

[jhm]

I like that a stock split will be voted on at the annual shareholder meeting. I think this sets a good precedent. Most years we wouldn't want or need a stock split. If it was voted on once a year, that would be frequent enough. The rest of the year there is little need to speculate on the timing of the next split.

 

[FielderJones]

That's not happening anytime before the collapse of big oil. Two years from now at the earliest.

Chevron appears to be the only component of the DJIA 30 in the petroleum industry.
Dow Jones Industrial Average - Wikipedia

 

[Rarity]

I like that a stock split will be voted on at the annual shareholder meeting. I think this sets a good precedent. Most years we wouldn't want or need a stock split. If it was voted on once a year, that would be frequent enough. The rest of the year there is little need to speculate on the timing of the next split.

In my view, that's not the way it will go down. Now, we will all be speculating on the timing of the next annual shareholder meeting.

 

[Chunky Jr.]

I like that a stock split will be voted on at the annual shareholder meeting. I think this sets a good precedent. Most years we wouldn't want or need a stock split. If it was voted on once a year, that would be frequent enough. The rest of the year there is little need to speculate on the timing of the next split.

Are they actually voting on a split, or just an increase in number of outstanding shares to make one or more splits possible in the future? My understanding was the latter, but I could be wrong.

 

[Artful Dodger]

I jus wanna say "How slick is Elon?", tweeting out the sabbatical and covfefe newz HOURZ b4 da Stock Split.

Well done, Sir!

Cheers to the Longs!

P.S. Why yes, I do think that Will Ferrell should play Elon in the movie. Who else?

 

[MP3Mike]

I like that a stock split will be voted on at the annual shareholder meeting. I think this sets a good precedent. Most years we wouldn't want or need a stock split. If it was voted on once a year, that would be frequent enough. The rest of the year there is little need to speculate on the timing of the next split.

No, we aren't going to be voting on a stock split. We will be voting to increase the number of shares the board can issue. Then it is up to the board to decide to do a split, and if so what ratio to split the stock.

Are they actually voting on a split, or just an increase in number of outstanding shares to make one or more splits possible in the future? My understanding was the latter, but I could be wrong.

From the 8-K: tsla-8k_20220328.htm

On March 28, 2022, Tesla, Inc. (the “Company” or “Tesla”) announced its plan to request stockholder approval at the upcoming 2022 Annual Meeting of Stockholders (the “Annual Meeting”) for an increase in the number of authorized shares of common stock through an amendment to the Company’s Amended and Restated Certificate of Incorporation (the “Amendment”) in order to enable a stock split of the Company’s common stock in the form of a stock dividend. Tesla’s Board of Directors (“Board”) has approved the management proposal, but the stock dividend will be contingent on final Board approval.

The Company’s definitive proxy statement relating to the Annual Meeting will include additional details regarding the Amendment, as well as the record date, date and location of the Annual Meeting.

We will be voting to authorize more shares, then the board will be finalizing their decision to do a split.

 

[jbcarioca]

No, we aren't going to be voting on a stock split. We will be voting to increase the number of shares the board can issue. Then it is up to the board to decide to do a split, and if so what ratio to split the stock.



From the 8-K: tsla-8k_20220328.htm



We will be voting to authorize more shares, then the board will be finalizing their decision to do a split.

Further, if Tesla is a forward thinking company they may well seek authorization for a large multiple fo what they actually want to do this time. That would make the next split a simple board vote.

 

[Artful Dodger]

Are they actually voting on a split, or just an increase in number of outstanding shares to make one or more splits possible in the future? My understanding was the latter, but I could be wrong.

Yes, exactly right. And Tesla will almost certain ask for the authorized shares limit to be raised well above the needs of the next few splits. I'd suggest a trillion, just for the zing it'll give to certain amygdala regions.

Cheers!

 

[jhm]

No, we aren't going to be voting on a stock split. We will be voting to increase the number of shares the board can issue. Then it is up to the board to decide to do a split, and if so what ratio to split the stock.



From the 8-K: tsla-8k_20220328.htm



We will be voting to authorize more shares, then the board will be finalizing their decision to do a split.

Tell me you're a lawyer without saying you're a lawyer.

 

[Chunky Jr.]

Yes, exactly right. And Tesla will almost certain ask for the authorized shares limit to be raised well above the needs of the next few splits. I'd suggest a trillion, just for the zing it'll give to certain amygdala regions.

Cheers!

I look forward to earnings of $10/share with 1T outstanding shares.

 

[M|S|M MYP]

We may or may not like Jonas, but this tweet shows he's convinced i think:

 

[Jeeps17]

Question for my enlightenment:

In the event that a large number of additional shares are approved (let's say Dodger's trillion), is the dilutive impact on existing shares accounted or adjusted for ?

Is there any adjustment to their intrinsic "weight", or do they just become of much smaller valuation and we move along ?

The reason behind my query is that if the number of new shares was significant, as in this example, a majority shareholder could conceivably lose that status even with the multiplicative effect of the split.

 

[Ogre]

Forgive me if I'm being a little daft here, but isn't the annual meeting in October/ Fall? Seems to me we have quite a wait for this so this is just a bit of a teaser announcement.

Or might they move the meeting forward a bit?

 

[Artful Dodger]

I look forward to earnings of $10/share with 1T outstanding shares.

So... Q4?

EDIT: Oh haha, you wrote "with 1T outstanding", my 2022Q4 est. is based on the current 1B shares. So $10 EPS on 1T shares, imma say 2071Q1.

The above is just on Auto growth, of course. So... C'mon, Opti-bot!

Cheers!