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

[Sparky4life]

https://twitter.com/x/status/1554483817578221568

Is this the same as saying that it won’t go up quickly unless it goes up a little first?

 

[oneday]

Can someone here simply tell me - spoon feed - how I should vote in each of those 13 items? I would prefer to do 'Musk party line' voting.

Thanks

Board recommended 1-5 FOR 6-13 AGAINST

 

[MP3Mike]

Can someone here simply tell me - spoon feed - how I should vote in each of those 13 items? I would prefer to do 'Musk party line' voting.

Thanks

If you are voting via ProxyVote, you can just click the "submit" button without selecting anything and it will ask if you want to vote using the board's recommendation.

 

[Medved_77]

I just looked in my E*TRADE transaction history and on 8/31/2020 it shows that I "bought" 4x the number of shares I held for $0. (With a description of "TESLA INC COMMON STOCK STK SPLIT ON <x> SHS REC 08/21/20 PAY 08/28/20" where "<x>" was the number of shares I held.)

View attachment 835882

Interesting, odd that it's recorded as 'bought' but that's likely just semantics. Looks like it was handled correctly. Zero price as to not create a taxable event in certain markets and I assume your cost basis was divided exactly by five.

 

[jerry33]

Board recommended 1-5 FOR 6-13 AGAINST

The only one I disagreed with the Board was the supermajority one. It seemed to me that if some Board members got mad at Elon, there could be a Steve Jobs situation. It's unlikely that a supermajority of board members would be found, but a simple majority is much easier.

 

[Electroman]

If you are voting via ProxyVote, you can just click the "submit" button without selecting anything and it will ask if you want to vote using the board's recommendation.

Thank you. That was super easy

 

[SarahsDad]

Can someone here simply tell me - spoon feed - how I should vote in each of those 13 items? I would prefer to do 'Musk party line' voting.

Thanks

Each question will list the Board recommended vote:

 

[oneday]

The only one I disagreed with the Board was the supermajority one. It seemed to me that if some Board members got mad at Elon, there could be a Steve Jobs situation. It's unlikely that a supermajority of board members would be found, but a simple majority is much easier.

Except it doesn’t have to do with how board members vote, but how the voting power of outstanding shares and not requiring shareholder votes to require super majority.


Edit to add from Tesla:

We are submitting to our stockholders a vote to adopt at the 2022 Annual Meeting each of the following:
• The inclusion of certain provisions in the proposed Amended Certificate to eliminate the current requirements that certain categories of changes to our certificate of incorporation be approved by the affirmative vote of at least 66 2/3% of the total voting power of all outstanding shares of Tesla common stock (the “Supermajority Amendment”); and
• An amendment and restatement (the “Amended Bylaws”) of our current bylaws to eliminate the current requirements therein that certain categories of changes to our bylaws be approved by the affirmative vote of at least 66 2/3% of the total voting power of all outstanding shares of Tesla common stock.

 

[Prunesquallor]

I just looked in my E*TRADE transaction history and on 8/31/2020 it shows that I "bought" 4x the number of shares I held for $0. (With a description of "TESLA INC COMMON STOCK STK SPLIT ON <x> SHS REC 08/21/20 PAY 08/28/20" where "<x>" was the number of shares I held.)

View attachment 835882

Mine shows the same. The interesting thing is the description:

TESLA INC COMMON STOCK STK SPLIT ON SHS REC 08/21/20 PAY 08/28/20

and the settlement date of 09/02/20.

What was the date of the actual split enactment on Tesla’s side? That will show E*Trade’s delay to “find” additional shares.

As I’ve related before, this process spanned the end-of-month account statement. My August statement showed my account hit by 80% reduction.

 

[Cobos]

It's just a delay of a decision.
Haven't LFP patents expired? So why wouldn't Samsung/LG Chemical (Or Tesla) jump on this to produce LFP in the US? IMHO just noise

Tesla shouldn't be affected. They import those LFP cells from China.
Ford, who was planning for future models, are likely to be more affected if any cancelling would occur.

 

[madodel]

Say only has 10% of my shares listed even though I have all my accounts setup. For whatever reason the shares in my TD isn't showing up. Schwab share count in Say looks correct. So odd.

That happened to me when I added a second account. Had to remove the accounts and then re-enter them, then it counted all my shares.

 

[UkNorthampton]

What is the problem with our friends in the UK becoming real TSLA shareholders instead of just owning fake (representational) shares created by a holding company? Real shareholders have a legal right to vote. It sounds like most (all?) of you have the UK equivalent of an ADR (American Depository Receipt). I avoid ADR's because they do not track the returns of the underlying security well over time. That's bad for long-term returns.

Tesla are foreign shares. They are widely held in many countries outside USA and retail holds them in greater proportion than many other foreign stocks (shares). I'd expect many European and other countries to be similarly organised to UK's system ie no way to vote. I have no idea if this adds up to enough shares to affect Tesla voting. I suspect it might just be relevant in some votes where a supermajority or absolute majority is needed.

Most UK retail investments are held/administered in tax wrappers, either ISAs or pensions. In my opinion these are very tax efficient.

The Tesla shares are held by CREST. This is similar to USA's DTC - indeed foreign shares in USA seem to be administered in a similar way - CREST (securities depository) - Wikipedia With DTC being similar to CREST. CREST is a member of DTC, whereas UK investment providers probably aren't and therefore MUST use CREST as an intermediary.

UK people must use W8BEN forms to trade Tesla and also avoid some/all US taxes (30% withholding). These forms don't go to US government, but to the providers to hold on file & report on or maybe on demand from USA tax authorities. So a provider seems necessary. I doubt if CREST want or is able to handle the forms.

As I understand it, the wikipedia article (CREST (securities depository) - Wikipedia) suggests that USA retail investors aren't on the company register directly either. Might be wrong, or simplified. There might be multiple ways to do this in USA.

To take the US as an example, the electronic settlement system in the US is called DTC and if a shareholder holds electronic stock in the US they will hold their securities electronically in DTC. In reality, they will hold the securities via a custodian, so the custodian's nominee details will appear on the company's register

I think the important thing is how many votes are just not available to vote either way and does it affect Tesla supermajorities?

 

[ZsoZso]

If they do a 10:1 split first, I’ll permit them to go private at $420.

I like your style, but I don't think at that point even the full Saudi fund + VW + whatever Elon & friends can chip in would be enough to buy up all the shares to take the company private...

 

[betstarship]

I like your style, but I don't think at that point even the full Saudi fund + VW + whatever Elon & friends can chip in would be enough to buy up all the shares to take the company public...

They'll still try. It's Elon.

 

[ZeApelido]

Tesla are foreign shares. They are widely held in many countries outside USA and retail holds them in greater proportion than many other foreign stocks (shares). I'd expect many European and other countries to be similarly organised to UK's system ie no way to vote.

Americans not letting UK get voting representation is payback 250+ years past due.

 

[Ogre]

I like your style, but I don't think at that point even the full Saudi fund + VW + whatever Elon & friends can chip in would be enough to buy up all the shares to take the company public...

And of mistakes, I’ve made a few….. but none of them so expensive as saying no to buying Tesla at $420… FFS. Imagine making a half a trillion dollar mistake. Epic fail.

Anyhow… my 10:1 wasn’t meant to be a likely scenario. It was me tossing down the towel. I won’t let them do it for anything less than that.

 

[unk45]

It sounds like you are saying Elon was just blowing smoke up our bums when he said Tesla strongly recommends against the use of pouch cell (due to fire danger).

It also sounds like you are under the mistaken impression that the A/C charge controller is not part of the BMS.

Actually wrong twice. I did, I hope, say that pouch cells were much harder to use than are less unstable forms. I noted the A/c charge controller because that single part allegedly caused numerous Porsche fires. In that case there has not been an integrated BMS.

obviously I did a poor job of making these points.

 

[Zero CO2]

Thanks for the response.

Just a small correction here. The company distributes the additional shares via their transfer agent (e.g. computershare) who then provides them to the DTC to distribute. The DTC shouldn't be creating anything.

Anyone lending the stock at the time of a stock split distributed by dividend could be concerned if their shares have been lent out by lender (repeatedly) that they may not receive the full amount of shares in return, if all available shares have already been distributed.

TSLA, GOOG, AMD have all issued stock splits distributed by share dividends, but I can't see any other shareholder groups querying whether they were distributed correctly so maybe it hasn't been an issue previously. It still may not be, but the BaFin (German SEC) announced today that the German brokerages had been instructed incorrectly to issue a stock split and not a stock split distributed by dividend. This has resulted in many shareholders receiving their dividend, having it taken away again, then replaced, only to be told it's still not correctly issued and to expect further disruption.

Again, appreciative of any comments from TSLA shareholders that were holders during the last split.

just search this thread around august 2020 there were issues for some shareholders where the dividend shares did not show up in their accounts .. i did not have any issues myself .. but i seem to remember a lot of chatter about this

 

[Medved_77]

I'd expect many European and other countries to be similarly organised to UK's system ie no way to vote.

Interactive Brokers (IBKR) allows voting on US securities from the UK and Europe. Don't believe it uses CREST although many UK based brokers do.

Revolut which uses IBKR for clearing allows voting too.

 

[unk45]

Well, it was pointed out to you that no OEMs other than Tesla actually have mega presses right now nor in production, but I didn’t say you were quoting lies. I said, you lost me at very smart OEMs. That’s an oxymoron in EV context, imo. There is nothing very smart about GM or Ford or BMW or Audi or except their ability to lie to the public via advertising, marketing, promotional material or announcements. It’s all one big, fat pile of . It’s been a big, fat pile of for over a decade. I’m wagering it’ll remain a big, fat pile of for the next decade. Tesla has them by the mouse nuts and is squeezing them tighter by the hour.

Clearly I agree with you. The smart OEMs to which I refer, and mentioned in recent points, were all Chinese. Tesla does not have all Chinese OEMs by any portion of their anatomy. Lest anybody miss my point Gigacasting is coming to Chinese OEMs. Anyway everyone conveniently ignores that Gigacasting itself originated with a Chinese owned firm IDRA together with their parent LK.

Just in case other people miss my point it’s Chinese. it is NOT US, German, other European, nor Japanese or Korean. It is Chinese and perhaps some unexpected new competitors, maybe even Vietnamese or…