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

[TheTalkingMule]

So TSLA has basically been capped here since 10:30 yesterday. How long can these clowns hold this position?

Get ready for a massive pile of FUD this weekend as they try to paint 1Q numbers in a negative light. There were probably 15 fewer working days in 1Q, so there might be some angles they can leverage.

 

[wipster]

Except yes they will be splitting stock.

They said so themselves.


See below:



Yes. That's totally accurate

They're doing a SPLIT of their stock in the FORM of a dividend.


But don't take my word for it- here's Tesla also telling you your claim they aren't doing a split and your disagree of my post is incorrect.

tsla-8k_20220328.htm

tl;dr- the reporting you were mad about is literally what Tesla themselves said about this

This refers to an "effective" split, not an "actual" split, that's my point. Whatever, obviously most people (except Lodger) disagree with me, so let's call the whole thing off, I prefer not to argue.

 

[StarFoxisDown!]

Don't forget NKLA, F, and RIDE. Was it @StarFoxisDown! who mentioned that TSLA seems to significantly underperform the day after significantly outperforming it's industry peers and it's own beta?

Yup, todays trading is downright comical.

I don’t want to hear anyone even remotely try to say this crap isn’t rigged/manipulated

 

[AudubonB]

@Prunesquallor :
Timothy Edmunds, 54, pleaded guilty Friday to one count each of embezzling union funds and money laundering during a hearing in U.S. District Court in Detroit, federal prosecutors said. He is the 17th defendant convicted in an ongoing criminal investigation into corruption within the UAW, prosecutors said.

Yep, that’s the kind of org I want representing me. Where do I pay my dues?


Ans: Every time you go to a stealership.

 

[Artful Dodger]

So TSLA has basically been capped here since 10:30 yesterday. How long can these clowns hold this position?

Find out how big the "sell wall" is at $1,100 (it was over 100K yesterday). We've also had technical selling as we've hovered just above the Upper-BB most of the day.

 

[AudubonB]

View attachment 787466
Bankers, WS types, SEC, UAW, NHTSA, bureaucrats, NADA, journalists, GoJo et al…

Who seconds the motion?

The ASPCS votes no!

 

[Todd Burch]

LOL, seems about right.

Tesla kills it, banks serious profits, and drops. Meanwhile RIVN posts massive losses and weeks later jumps 17% on "seemingly no company-specific news", haha.

"His judgement cometh, and that right soon."

 

[Artful Dodger]

This refers to an "effective" split, not an "actual" split, that's my point. Whatever, obviously most people (except Lodger) disagree with me, so let's call the whole thing off, I prefer not to argue.

Technically, you're right: each individual share has a unique identifier number associated with it by Tesla's share issuing agent. These serial numbers are not "split"; they remain intact and unchanged.

Instead, for each unique share you own (or held by your broker on your behalf), you will receive 4 additional shares (each with it's own new S/N), in the case of a 5:1 dividend.

Colloquially, of course, people just call this a "share split" because its easier to say, and most don't even know they have unique shares (brokers like to hide that info so they can pool their shares, and avoid being caught "short", as happened on Aug 31, 2020).

Cheers!

EDIT: The above is my lay person's impression, based on how I've seen the system work. For more technical insights, I defer to @Boomer19

 

[Ogre]

View attachment 787490

LOL, seems about right.

Tesla kills it, banks serious profits, and drops. Meanwhile RIVN posts massive losses and weeks later jumps 17% on "seemingly no company-specific news", haha.

"His judgement cometh, and that right soon."

I think the relevant quote is :

In the short run, the market is a voting machine heavily manipulated tool of Wall Street, but in the long run, it is a weighing machine​

 

[M|S|M MYP]

 

[aGreenGuy]

As I understand it, capping is optionwriters selling shares to keep the SP down, making options at certain strike prices expire worthless. If that’s correct, who’s shares are they selling, and will they need to buy them back at some point?

At what cost does this capping come?

 

[Nocturnal]

As I understand it, capping is optionwriters selling shares to keep the SP down, making options at certain strike prices expire worthless. If that’s correct, who’s shares are they selling, and will they need to buy them back at some point?

At what cost does this capping come?

From what I can tell, they are selling shares that don't exist.

 

[saniflash]

As I understand it, capping is optionwriters selling shares to keep the SP down, making options at certain strike prices expire worthless. If that’s correct, who’s shares are they selling, and will they need to buy them back at some point?

At what cost does this capping come?

The theory is that the market makers, who sell the majority of option contracts, use an exemption (the "Madoff exemption") to naked short, i.e. sell shares without locating them first (usually, in order to sell short, you have to get a locator ID for long shares that you'll borrow).

The short sellers then cover at a later time that is more opportune (e.g., in case of a macro movement downwards). This hypothesis is also used to explain sideways/downwards trading on Friday, with a pop on the subsequent Monday (when the MM's cover their naked short from Friday).

I'm not competent to judge whether this theory holds any merit or not. I can just say I've been observing strange stock price movements for the last 4+ years.

The stock price can also be capped by "spoofing", i.e., by entering large sell orders at certain prices without the intention of selling (a normal investor wanting to divest while maximizing their exit price would not post their asks this way as it artificially depresses the price -- they would rather use an algorithm to distribute their sales in time, price and quantity). There are even order types (e.g., "cancel if touched" [1]) that facilitate this procedure at limited to no risk to the "seller".

[1] yes this order type really exists, and it invites traders to manipulate the order book

 

[jhm]

The market needs to make sure it feels okay about TSLA at $1100 before venturing above.

It's okay, market. Take your time. Your feelings matter.

 

[insaneoctane]

Volume barely average today. That surprises me.

 

[Skipdd]

As I understand it, capping is optionwriters selling shares to keep the SP down, making options at certain strike prices expire worthless. If that’s correct, who’s shares are they selling, and will they need to buy them back at some point?

At what cost does this capping come?

Ignorant question - outside of improved regulatory oversight, is their a counter-mechanism to offset the capping. Could another firm or sufficiently wealthy individual(s) do the reverse of the capping to counter their actions?

 

[Mengy]

Honestly that was a frustrating day for TSLA. So much of the market, especially green & EV stocks, were up a lot today while TSLA kind of traded flatly.

 

[Artful Dodger]

A-ha-hah! MMs and wedgies 'stick the landing'.

Cheers to the Longs!

 

[TheTalkingMule]

My guess and hope is that we see a nice fat MMD tomorrow morning on the momentum of a "down tech day" after the NASDAQ went +1.84% today. Then we recover and start the climb toward a $1200 close Friday.

Looking to buy 4/1 & 4/8 1200c 8n the morning, then sell 1200c & 1250c in the afternoon and into Thurs.

It's nice we're not seeing anymore volatility now that TSLA is in the S&P500 index.

 

[AudubonB]

This afternoon provided us with the sight of the most appallingly egregious example of obeisance to the Great God 1100 imaginable.

I mo betta hie myself down to the corner of Broad & Wall and let them know PapaBear don’t allow no numerology ‘round here.