The "noise" about Elon's stock sale seems like just that, noise. He sold 8 million shares while owning 193 million shares, or about 4% of his holdings. More important, he's not "dumping" because he sees the company tanking and is getting out while he can; he's freeing up his cash for another acquisition. Why all the drama? He doesn't have billions of cash sitting in the bank, nearly all his wealth in his shares. When he needs cash, he sells shares, just like anyone else living off his investments.
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Tesla, TSLA & the Investment World: the Perpetual Investors' Roundtable
- Thread starter AudubonB
- Start date
it's a leveraged etf. it's usually not buying options but using borrowed money to create the leverage, and resets daily.
I have not looked at the mechanics of this particular etf, but in general leveraged etfs are a bad idea. These are designed for day trading or really short days.
This is what's not making sense to me.
Isn't financing the one contingency that Elon put into the TWTR stock purchase agreement? If so, couldn't he back out of the deal if financing falls through? Can the court require him to go through with the purchase even if private equity financing falls through? Or is it case where Elon is selling more shares because he is concerned about financing yet he still wants to complete the purchase?
Nevermind, I found what it was: Tesla (TSLA) boosts its cash further with $5B share sale ahead of S&P 500 inclusion
Tesla did a capital raise shortly before S&P inclusion...not shortly before the split last time.
Lucid is asking their reservation order from "reservation" to "order" to keep the $7500. They are also forcing people to upgrade to their premium sound for $2900
Krugerrand
Meow
Yes, yes they are and it might already be too late.
Gigapress
Trying to be less wrong
I agree with this except that he also has the option of using margin credit with his TSLA (or SpaceX/Boring/Neuralink) equity as collateral and I believe I remember reading that he’s funded most of his expenses this way over the years. Considering his net wealth relative to his spending, I’d have to imagine he’s nowhere close to his limit on his margin loan(s).
Earlier in the Twitter acquisition negotiations, Elon had committed to using $12.5 billion in margin loan cash to help with securing funding. In May, he cancelled that plan (SEC 13D filing).
So maybe he had the option of revising the plan again to use margin instead of selling TSLA shares this week. I’m not sure as I’m not an expert on the law or corporate acquisitions, but if it was allowed before it seems likely it would’ve been allowed now and I doubt that the manner in which Elon sources cash would really matter to the negotiations.
Would it be possible if the Twitter BoD or an investor (group) required Elon to have it be source from TSLA?
TheTalkingMule
Distributed Energy Enthusiast
That's a tweet from April. I was referring to the one from last night that undeniable dispells the notion in the article you shared.
Yes. And April he said that he has no plans to further sells. Yet he sold.
TheTalkingMule
Distributed Energy Enthusiast
It's my understanding that some of the financing is only an obligation if at the original price. If Elon settles for a slightly lower sale price, I believe some investors have the right to walk.
I would imagine Elon already knows exactly who would possibly walk and has now covered a worst case scenario.
TheTalkingMule
Distributed Energy Enthusiast
Yes, he had no plans for additional sales in April. This is August, circumstances have shifted dramatically.
Perhaps we can take all Twitter related trolling to the Twitter thread? People can throw their hisssy fits over there.
Plans change.
But I am with you!
EM is like TSLA!
He can be predictable for the long term! He even tells you exactly what he is going to do!
Short term.... fuggedaboutit.
The beauty of life is that plans do change all the time and for everybody.
This is interesting
rivian.com
How will the Inflation Reduction Act impact my eligibility for the electric vehicle (EV) federal tax credit? - Support Center - Rivian
On Tuesday, August 16, the Inflation Reduction Act was signed into law. At this time, we’re no longer accepting new binding order agreements to purchase Rivian vehicles. As a reminder, buyers who signed a “written binding contract” to purchase a qualified EV before the Inflation Reduction Act...
rivian.com
I went for a scan today and in the hospital car park there were 14 cars, 4 of which were Tesla Model 3s. Admittedly it was a private hospital.
Just as the USA is expanding the EV tax credit system, the UK has canned their's. Will be interesting to see if the huge take up of EVs in the UK I have witnessed over the last couple of years continues without the subsidy. I think I know the answer. Drivers are buying EVs not because there is a subsidy, but because they want an electric car.
As a reminder, the Model 3 was the second best selling car in the UK last year. That's all cars, not just electric.
Just as the USA is expanding the EV tax credit system, the UK has canned their's. Will be interesting to see if the huge take up of EVs in the UK I have witnessed over the last couple of years continues without the subsidy. I think I know the answer. Drivers are buying EVs not because there is a subsidy, but because they want an electric car.
As a reminder, the Model 3 was the second best selling car in the UK last year. That's all cars, not just electric.
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