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TSLA Market Action: 2018 Investor Roundtable

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Fast checking about possible outcome of voting..

TSLA Major Holders

25.31 % of Tesla Shares is Held by All Insider
39.6 % of Tesla Shares is held by Top Ten Institutional Holders
64.91 % Total

What is the chance for negative outcome of voting ?
Zero , null , nada, ništa, niente..

Some of them, depending on their circumstances, may not be able to go private. Also, if the vote takes place after Q3 and FSD first features are released, the share price could be above $420 by then, which would increase the incentive to raise the price. So I'd say that is way more likely that the vote is yes, but I wouldn't say no is a 0.
 
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This is absolutely the case.
Would explain yesterday's high volume, low movement and slight short reduction.
'Smarter' shorts buying from 'less smart' shorts...

Also, if the vote takes place after Q3 and FSD first features are released, the share price could be above $420 by then, which would increase the incentive to raise the price.

Only for those not transitioning to private Tesla. If the backers acquire now, the pool to buy out shrinks along with capital needed.
 
Fair enough. So I am genuinely curious as to how this could be the case.

The USA is a reasonably open country with a real risk that misdeeds come to light.

And I have to imagine that among journalists some still look up to Bob Woodward and Carl Bernstein and have some integrity left.

So are there financially weak or otherwise vulnerable journalists who are actually being bribed ?
Or are they (being) convinced that they would lose their job if Tesla, which doesn't pay for commercials, is allowed to succeed and create a new trend ?
Are are they just clueless and duped about a given 'editorial line' ?
Or is it just that bad news and a critical view is thought to attract more viewers?

How would this actually work - and wouldn't that in itself be a story for a real journalist?
I think in the case of a CNBC they cover wall street. So they want the players of wall street to come on the show. There is a certain unwritten rule to not bite the hand that feeds you.

Not all reporters and analyst play that game I am sure. I do not usually watch TV so I can't speak to other shows. I was referring to that one clip were the regular host's...not the guest's .....were dismissive of positive views of Tesla.
 
Whew! I just caught up on this thread. I was about 40 pages behind yesterday. What a crazy couple of days! Very very glad to have this resource at a time like this.

Huh, I get 60 pages, but then again you put all the lunatics in "ignore"

Mods: maybe we can rename this thread to "2018 Shorty-Short FUD Discussion"

Don't know whether I'll be relieved or sad when Tesla is private, pushing back against this absolute Sh*t that gets spread gives life a certain meaning...
 
Couldn't the shareholder vote alone be such an event?

Voting shares cannot be lent out - and AFAIK the shares are recalled a couple of weeks before the shareholder voting.

I suspect a large part of the short interest comes from institutional longs who are borrowing their shares for a small fee. Many of those institutional investors would be required by their bylaws to vote during such an event.

This is one of the most important corporate decisions of Tesla since it's 2010 IPO, by a large margin. What is the percentage of shareholders who'd want to vote? If it's above 100% of the float then the short squeeze triggers automatically: the recalled borrowed shares cannot be borrowed from other sources and cannot be bought on the market from the rest of the float either.

Volkswagen 2008 short squeeze, take 2, with an ... order of magnitude more severe trap that won't be over in a few short days...

Am I missing anything?
Interesting. So those shareholders most opposed to going private must mobilize to vote. A nay vote strong enough to halt the proposal will likely force a squeeze on the stock.

So get out the vote!
 
- could this be a desperate attempt to lure others into short selling Tesla, giving himself a much needed opportunity to buy back some of his own short sales?

An interesting question is where did he get the money? He has a micro hedge fund that with Elon's go-private announcement just had its largest investment basically go to zero. Perhaps he got a cash infusion from another hedgie knowing that Mark would use it to short Tesla and of course yell it from the rooftops (we know that at least David Rocker -- a famous short hedge fund manager -- has said he invested $ in Spiegel's fund).

The hedge funds who have hundreds of millions or billiions in a Tesla short that is about to get wiped out need to cut their losses and get out. The best way to do that and minimize losses is by persuading dumber shorts to stay in for as long as possible and better yet short more, while at the same time raising fears among longs to get some of them to sell, which puts downward pressure on the price.

As Tesla provides more details and the deal moves along this strategy will be less and less effective.
 
Fast checking about possible outcome of voting..

TSLA Major Holders

25.31 % of Tesla Shares is Held by All Insider
39.6 % of Tesla Shares is held by Top Ten Institutional Holders
64.91 % Total

What is the chance for negative outcome of voting ?
Zero , null , nada, ništa, niente..

Some of them, depending on their circumstances, may not be able to go private. Also, if the vote takes place after Q3 and FSD first features are released, the share price could be above $420 by then, which would increase the incentive to raise the price. So I'd say that is way more likely that the vote is yes, but I wouldn't say no is a 0.

Institutional Holders can, of course, if they wont..
Share price should be fair for sure, but that price is important for buyout investor, not for share holders who stay.
 
I'll just leave this right here. 3 weeks to go in August...

Screenshot_20180809-064316.png
 
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Proof that Elon is telling the truth about having funding secured:

Elon tweeted:
"Funding secured".
"Investor support is confirmed. Only reason why this is not certain is that it’s contingent on a shareholder vote."

The board of directors then released a statement including: (regarding their meetings with Musk the week prior)
"This included discussion as to how being private could better serve Tesla's long-term interests, and also addressed the funding for this to occur."

If what Elon showed the board regarding funding was anything less than a certainty as claimed in his tweets, they would have revealed that in their statement. They would have had no choice. If they knew the CEO was committing ongoing fraud of this magnitude and didn't stop him they would be exposed to legal action along with Musk.

What are you, some kind of wise-guy? Coming here, with all your facts. Some folks around here don't like that kinda talk!
 
I probably will not go private, but I’m only selling my shares to Elon’s investor group at time of buyout, unless the shorts want to give me over $500 per share.

I don’t see how we don’t get to at least $420 just from the share recall for the vote.

That said, I won’t sell at $420 except in the official buyout, and I would think most longs would feel similarly, so I’m still struggling to figure out where the shorts are going to buy their shares for less than $420 unless they are buying right now.
 
Let's say you are a big investor who Elon has talked to about going private and you have agreed to take a certain percentage of the company

You could either buy shares now at a discount and transfer them over or you could wait and pay 420

Right now, only you and the other private investors Elon has talked to have the knowledge that this thing will go through because only you know he has the numbers.

So if Elon does have the numbers, we will find out very soon because there will be very intense buying of shares by these investors to avoid having to pay 420.

The number 420 will not be that important because most investors will get in before it gets there. It will only be the price paid to a minority of shareholders who cannot or do not want to continue with tesla private. This number will be raised likely to appease these shareholders but it won't matter much because the majority of shares will be trasferred over rather than bought.

I think we skyrocket today or tomorrow.

Not advice, just a feeling and could be wrong

Will that be trading on inside information?

It is public knowledge that he has funding secured, so maybe this is ok.. I guess so, but not quit sure. :)
 
Actually, the Journal is reporting that is not clear whether an enforcement investigation is or is not currently underway. Look at the paragraph immediately following the one you qouted:

"It couldn’t be learned on Wednesday whether the agency had opened a formal enforcement investigation. An SEC spokesman declined to comment. Tesla didn’t respond to a request for comment."

Ergo, your 'ergo' is not substantiated. ;)

That's like saying, "It couldn't be learned on Tuesday whether Mueller had formally indicted president Trump". Maybe it will happen, maybe it won't. Really BAD reporting.
 
Not advice, but I'm pretty sure the deal will go through @ $420. There is a small chance the final price may go up a little bit.

"Final price may go up a bit" - but this is only relevant to those selling-out or the shorts having to buy, right? For those of us that stay with $TSLAP, there will be a new valuation as of day 1, I suppose?

Anyone any ideas on that? I guess it's irrelevant anyway, the first buy/sell event will be all that matters.
 
To be honest, if it is trading below $420 and privatization is secure, I'll take the deal. I will take delivery in a month or two and can't wait 6 months for another chance to get my downpayment out. Not my ideal situation, but I figure I am doing the best possible thing I can to support the company...buying their product. Wish I could do it and still stay vested but I can't.

Dan

Why not keep at least one to have a foot in the Golden Door of privatization.
 
Question- is there a way to see the number of naked calls/puts as a part of the Open Interest?

i don’t think so, but you can search occ site or even cboe site for
This brings me to my question. I'm just a normal blue collar worker, I don't do any trading, shorting, leaping etc. But I do own 73 shares of TSLA that I have been buying over the last 2 years. I saved and not done other things, but instead decided I would buy a few TSLA shares every month. I'm up 40% and have been as high as 50%.
Is it true that you would need to be an "accredited investor" to keep your stocks under current law? Not being able to ride this out another year or even 5 years instead of being forced out at $420 because I'm not rich. That would really suck...

it’s likely due to regulations for individuals investing in private equity in US, even gene munster mentioned it in his story that curt renz posted.
BUT...let’s wait to see the filing, and take apart the offer prospectus.
 
All in all I think Tesla would have been just fine if it stayed public. It's a disappointment. IMO it's more for ease of life that Tesla leaders are doing it. They'll have less public stress to constantly counter attack FUD, Wall Street BS analysis etc. but fundamentally I don't think it changes a lot in terms of execution.
But that's just the way it is. On a 10 year period the outcome will likely be the same.
 
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Will that be trading on inside information?

It is public knowledge that he has funding secured, so maybe this is ok.. I guess so, but not quit sure. :)

I'm not sure acquiring stock is insider trading.

It will be interesting to see if any new 13Ds (>5% ownership disclosures) come out in the next 10 days. That would reveal potential funding sources.
 
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All in all I think Tesla would have been just fine if it stayed public. It's a disappointment. IMO it's more for ease of life that Tesla leaders are doing it. They'll have less public stress to constantly counter attack FUD, Wall Street BS analysis etc. but fundamentally I don't think it changes a lot in terms of execution.
But that's just the way it is. On a 10 year period the outcome will likely be the same.

I agree in terms of execution (esp with no further cap raises) but every other aspect is impacted by short/ bear induced negativity and wall street induced near term profitability pressure.

Getting rid of the FUD machine will increase Tesla's credibility in the public eye.
 
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