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Tesla, TSLA & the Investment World: the Perpetual Investors' Roundtable
- Thread starter AudubonB
- Start date
BrownOuttaSpec
Active Member
Yeah, this is what Nvidia reported:
Let's hope they pull a Dick's with a huge reversal like you think and pull us up along with for the ride past 700. This was Dick's Sporting goods with yesterday being the release of their Q1 numbers:
I guess that's great but it does not mean he won't have to sell to come up with more $$ .... what am I missing?
He'll either have to find investors to fund the new $6.25B in equity financing or come up with the money himself. There was news reported this afternoon that he is in talks with Twitter shareholders, so maybe there's hope that he'll have some additional investors lined up.
This can be interpreted through either a bullish lens or a bearish one. Bullish view - no reliance on TSLA margin loan removes risk of a margin call, he lines up new investors so he doesn't have to sell more TSLA shares. Great! Bearish view - Elon is concerned about TSLA valuation in the short term, doesn't want to face a liquidity crunch and therefore doesn't want to rely on a margin loan; if he can't line up other backers may also require selling of additional TSLA shares.
Obviously I'd prefer the former, and think it the more likely of the two scenarios.
EDIT: Or, as @wnorris points out, it may point to a negotiated price reduction for the transaction.
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There is nothing in the filing to indicate or confirm if Elon will sell more TSLA shares.
Or he can negotiate a 25% decrease in purchase price to account for the 25% of twitter bots.
Currently Musk has committed enough money to buy twitter at 43.8 dollars a share.
$42.0 may be the new negotiated price. Those arbitraging should be careful.
$42.0 may be the new negotiated price. Those arbitraging should be careful.
or negotiate a lower price. I would hate to think Elon would come out and sell more shares at the current depressed price.
Yes, good call. It was just reported on Bloomberg TV that Elon has a very weak case in walking from the deal altogether, but he may be able to extract a concession from TWTR in the form of a reduced price (given that TWTR shareholders may want to avoid the volatility and risk of a court battle).
Assuming he has enough investors to get the additional 6 billion, this should be a very good thing for the stock price. If he can't secure the funding from others, he will have to come up with the money somewhere and I'm not sure how much spare change he has under his couch cushions but I'd suspect he would have to sell some more TSLA. I'm really hoping he's got investors lined up.
How do you know those cash offers aren't financed by margin loans???
Just pointing out that Elon will most likely NOT sell shares because he will get a better deal using a margin loan on his Tesla shares. The reason he is getting rid of margin loans is so that there wouldn't be any risk of him getting margin called(aka force selling of shares).
It would be very weird if Elon got rid of his margin loans just so he can sell shares...that's like forcing a margin call on yourself before the margin call..lol.
It would be very weird if Elon got rid of his margin loans just so he can sell shares...that's like forcing a margin call on yourself before the margin call..lol.
Why would anyone have borrowed on margin at a variable daily rate for the biggest purchase of their lives instead of getting a 30-year fixed mortgage at historically low rates?
bkp_duke
Well-Known Member
You are missing this:
Musk just has to come up with the $$$. It doesn't necessarily have to be HIS money. He can show up with a group of investors. That's what he's been working to since he already found 12B from these individuals, and is probably working to move that higher to cut down on (non-margin) loans that he has lined up.
Honestly, it's nothing surprising, and it's why TSLA shares after hours have not budged much (small blip down I attribute to NVDA).
I personally know of one ... 14 million .... margin against TSLA shares and it's been a rough 2 weeks. I'll leave it at that ... no it's not me.
But, for the most part I agree that most home sales are very solid right now as getting a loan was incredibly difficult. We did a refi and are cash rich but income poor and it was like pulling teeth to borrow 400k against a house value of 1.8 million (at the time) with enough in the bank to pay off the loan 5 times over. I couldn't' believe it ..... mortgages are solid right now. As far as values go, I'm pretty sure we have seen the top for a while ... slight declines would not surprise me but really here in CA .. there is very .. very little inventory.
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