Yonki
Supporting Member
That's exactly what it was. First new batch of shares was lent out today.
Yep. They don't lend shares until they're settled (to avoid problems with settlement failure, which could actually be a serious problem when you have this level of shorting -- I looked it up and there were settlement failures in February in either TSLA or SCTY, I forget which). At Schwab, if you bought on Wednesday, the shares settle 3 business days later on Monday, and Schwab will let you lend them out Tuesday morning.
Found it. It was March and it was SCTY.
OTC Markets | Official site of the OTCQX, OTCQB and OTC Pink Marketplaces featuring Free Stock & Bond Quotes, Trade Prices, Chart, Financials and Company News & Information for Investors, Companies and Traders - OTCMarkets.com
If you look back at March 2, you'll find SCTY on the "Reg SHO Threshold Flag" list. That means there were delivery failures equal to more than 1/2 of 1% of outstanding shares (~491,000 shares) for five consecutive days. It didn't come off the list until Mar 22.
Or, for a quicker link:
SCTY SolarCity Corp: Short Sale Data, Days to Cover for SolarCity Corp - OTCMarkets.com
So there is a serious risk of counterparty default in buying SCTY shares, and possibly in recalling them from lending. Worth knowing.
OTC Markets | Official site of the OTCQX, OTCQB and OTC Pink Marketplaces featuring Free Stock & Bond Quotes, Trade Prices, Chart, Financials and Company News & Information for Investors, Companies and Traders - OTCMarkets.com
If you look back at March 2, you'll find SCTY on the "Reg SHO Threshold Flag" list. That means there were delivery failures equal to more than 1/2 of 1% of outstanding shares (~491,000 shares) for five consecutive days. It didn't come off the list until Mar 22.
Or, for a quicker link:
SCTY SolarCity Corp: Short Sale Data, Days to Cover for SolarCity Corp - OTCMarkets.com
So there is a serious risk of counterparty default in buying SCTY shares, and possibly in recalling them from lending. Worth knowing.
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This thought just came to my mind, and I found your post. Sorry if this was already answered, but how certain are you that Elon won't lend his shares?
I ask, because I know that large institutional holders like Fidelity DO lend their shares. And Elon lending his shares (2% fee from 20 million shares) would be a SIGNIFICANT monthly income! I had always been under the impression that Elon had sunk every last penny into his 3 ventures, and without an annual salary (he donates them), nor selling any of his shares, how does he pay for living expenses? As well as service his personal goldman sachs loan for the 2013 stock repurchase?
Is there any reporting requirements for lending shares out to short?
I don't remember whether Tesla still has any financing contracts with lock-up provisions -- they used to have some with Toyota or Chrysler IIRC which said that Elon was *required* to keep control some percentage of the company, which would have prohibited him from lending out those shares. I think they don't have those any more?
That would be a good reason, but wouldn't the ability to recall his lent shares give him effective control anyway? Assuming that's a grey-area that he wouldn't want to skirt, and if the percentage control requirement is below his existing ownership stake, couldn't he still lend out ~1 million shares earning him ~$4 million per year (2% of $200 million)?
jvonbokel
John VonBokel
He donates his Tesla salary, but I expect he is paid handsomely by SpaceX. As a private company, they are not required to publish compensation.
Yonki
Supporting Member
dc_h
Active Member
A big chuckle for me if it happens this week. Underwater 240 options would be nice to recover.
Hi SBenson, could you please let us know how to make sense of this? I am new to share lending so I don't know how it works and what all the percentage means.
Yonki
Supporting Member
More small bumpage at Fidelity:
Lend TSLA: 10.0%
Short TSLA: 21.5%, 0 shares available to short
Lend SCTY: 46.0%
Short SCTY: 82.0%, 0 shares available to short
Lend TSLA: 10.0%
Short TSLA: 21.5%, 0 shares available to short
Lend SCTY: 46.0%
Short SCTY: 82.0%, 0 shares available to short
Because you only pay less than $1 in commision as a private investor at IB, if you have a huge amount of trades, you may choose a fixed fee, that is far below that.
Does anyone have a theory as to why the financial press has not picked up on the high interest rate story? The astronomical interest rates (especially Solar City) certainly seem newsworthy, especially these days when zero interest rates (or negative interest rates) are the baseline.
tander
Active Member
- Jul 23, 2012
- 1,508
- 1,499
EinSV, good point, guess they haven't read this thread yet?
Also is it fair to assume that an uber like service, an intent and basic plan to build many factories, or a China partnership deal would be enough to warrant analyst upgrades? It seems like any one of those would be enough to trigger enough upgrades/stock positivity to make short interest fall off a cliff, especially if they give a lot of info with the battery factory party.
Also is it fair to assume that an uber like service, an intent and basic plan to build many factories, or a China partnership deal would be enough to warrant analyst upgrades? It seems like any one of those would be enough to trigger enough upgrades/stock positivity to make short interest fall off a cliff, especially if they give a lot of info with the battery factory party.
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