TSLA Market Action: 2018 Investor Roundtable

[Runarbt]

Why no covering?

 

[mrdoubleb]

From the blog post:



Also very interesting for the long term:



So IMHO for the long term investor, if you skip the next 10 years, you´ll wake up to tesla being public again at a much higher price.

In the mid term, everything will be much slower, no shorting, no wild swings - maybe boring, maybe relaxing, however you see it.

In the short term - I got no f** idea!! Just stay long and wait I guess, happy I am not into calls right now.

ok, so the blog post answers part of my question (every 6 months), but what's the share price for a private company if I want to sell? Right now it's set by "the market". For a private company it's the Board who offers a price? sorry, brand new territory for me.

Honestly, I wasn't planning to sell for another 3-5 years at least / under $1000, so I would consider staying long, just not sure about the implications.

 

[schonelucht]

Anyone have any insights if the large fund holders in Tesla are allowed to keep their stake after the company goes private?

 

[FirebirdAlpha]

Is there anyone who really thinks this deal will not go through at 420?

Considering that every Wall St bank said they were unaware of any proposal, yes.

I'm shorting more. Who is buying at 420/share? And why are they buying existing shares rather than infusing w/ new equity?

Elon has also capped our losses. I can offer 425/share, and the market will sell to me instead of the "mystery buyer."

All of the Wall St banks, mutual funds, hedge funds, etc. have liquidity requirements. They will be obligated to sell their Tesla shares when the privatization happens at 420/share.

 

[Jayjs20]

it's not even finalized that it is happening.. so no?

Good point.

who’s your broker

Robinhood.

Also, given that J20 400 call options just dropped to 45 dollars, I guess getting out at 52 was a good idea, even though it was at 70 earlier today.

 

[Open Interest]

Absolutely not.


That would be my guess. There will probably be some sort of liquidity provision, but it might be on the order of "We'll put you in a list of people trying to sell some shares, and we'll transfer them the next time another of our investors wants to purchase shares, maybe sometime this year, maybe not".

Thank you Neroden!

 

[uselesslogin]

OK the thing is there is a fund that owns SpaceX at Fidelity but they own less than Google. The only way to invest in SpaceX is to buy Google for the 7% stake they have...

 

[Bobbyducati]

interesting price action going on... didnt expect it to pull back

 

[Open Interest]

Anyone have any insights if the large fund holders in Tesla are allowed to keep their stake after the company goes private?

They were just talking about this on CNBC. Apparently mutual funds cannot be in private funds.

 

[geometro]

Taking Tesla Private

This is the best path forward. Less noise, more execution!

 

[Mike Smith]

Just converted all options into weeklies. People will realize tonight what all this actually means. Crazy opportunity.

 

[davecolene0606]

Hedgefund short guy on CNBC saying Elon is lying and he is adding to his position.

Fire Away!

 

[Open Interest]

interesting price action going on... didnt expect it to pull back

Shorts on CNBC crying fraud

 

[Boomer19]

Absolutely not.


That would be my guess. There will probably be some sort of liquidity provision, but it might be on the order of "We'll put you in a list of people trying to sell some shares, and we'll transfer them the next time another of our investors wants to purchase shares, maybe sometime this year, maybe not".

elon said they would have liquidity periods every 6 months. but i’m holding judgement until we get the 200 page prospectus hah.

these things usually take months to unravel. mid 2019 earliest is my guess.

key dates are proxy vote record date (loaned shares cant vote)

eff date - also the date trading will stop if vote goes through

 

[Dan Detweiler]

Ok, what is happening? I am new to all this and night things seem to be happening VERY quickly. I get that Elon is talking about taking the company private. What exactly does that mean for us little guys and why is it impacting the stock so strongly?

No joke guys, I'm really that ignorant! Somebody please educate me...using small word, preferably 2 syllables or less. Oh yeah, and no acronyms!

Thanks,

Dan

 

[Boomer19]

Good point.



Robinhood.

Also, given that J20 400 call options just dropped to 45 dollars, I guess getting out at 52 was a good idea, even though it was at 70 earlier today.

that is unacceptable for times like this.
get a real broker (IB is cheapest of real brokers)
be in control.

 

[neroden]

This kind of seems like an easy way to force a short squeeze, line up the financing for 420, and if it blows past that the deal doesn't have to go through.

Pretty much. This is how I'd describe the likely outcomes:

-- if the stock stays below $420, the deal goes through as planned.
-- if it goes slightly above that (say, $421), the deal still goes through as planned (see Amazon's purchase of Whole Foods).
-- if it goes substantially above that (say, $450), Musk probably makes a higher-priced go-private offer, and *that* probably goes through.
-- if it goes WAAAAY above that (say, $2000), Musk probably says "OK, I don't have THAT much financing lined up", and the deal is cancelled.

 

[mickificki]

chatted with schwab today and asked about my deferred compensation shares (like 401k) being able to be converted to private tesla shares. he said they didn't have an answer, not until more details come out.

 

[neroden]

What is the typical collateral for stock lending programs?

102% of *last night's closing price*.

 

[Chickenlittle]

Shorts on CNBC crying fraud

Actually they are crying and their sobs sound like fraud