TSLA Market Action: 2018 Investor Roundtable

[EarlyAdopter]

Watching the stream of negative news from Dow Jones, Bloomberg, and CNBC, I'm reminded that Elon taking Tesla private is a huge threat to their livelihood. They cover Wall Street. Elon is saying he's opting out of Wall Street.

Also, Elon going through Twitter to announce this and not through them (not a single interview on CNBC, for example) also has to put them on edge. No one likes to be cut out of the loop.

Everything about this suggests they are hitched to something, Wall Street, that is made a little less relevant if this deal goes through, and that they aren't the gatekeepers of information dissemination they used to be. This sets a dangerous precedent. Not surprising that their coverage would be biased negatively.

 

[phil0909]

Two days ago, I really didn't expect there would be yet another opportunity to concentrate more of my portfolio into one stock than I ought to. Oops, I did it again (at $348, selling some HASI to do it).

Be careful, Britney.

 

[MP3Mike]

I'll wait for the 8k which should be filed by Monday.

Is an 8k necessary if the board receives and offer and rejects it? (Or is still in the process of reviewing it?) As I see it Elon wasn't acting as a agent/representative of Tesla when he made that statement, he was acting as a representative of the "group" that is contemplating a buy-out of Tesla.

I.e. if I make an offer to buy Tesla out at $415 and the board laughs at me do they have to file an 8k and tell the world?

 

[Remus]

“The SEC inquiry is preliminary and won’t necessarily lead to anything more formal”

So... by “intensifying it’s probe”, they mean “nothing changed”.

If I am alone out there without the information from this board I will feel scared by these repeated "news". I am guessing some scared longs are selling

 

[wipster]

Funny I have to correct turbotax after direct import each year or pay a ton in undue taxes.

Damn... haven't had to yet, but I don't have very complex trades. It's all based on the eTrade feed anyway. I'll take a closer look next year, especially after this adventure. Thanks for the info mate!

 

[MP3Mike]

Remember, $420 is an initial offer, subject to shareholder approval.

I'd love to see the 8-K come out with "After consulting with some of our largest shareholders, we've settled on a price of $450 which we feel best meets shareholder expectations. We are confident at this price the vote will be affirmative."

No, $420 is an offer subject to board approval first, and then shareholder approval. And the board can't change the offer, though they could counter-offer to Elon, and his "group", a different price/terms.

 

[lklundin]

I'm so tempted to go on Margin and take out a big loan but I'd be way overleveraged It's really crazy that the rhetoric is now Elon is lying. Then again they've called him the modern day PT Barnum

Yes, this is a great opportunity to learn of one's fear vs greed limits.

I am thus reminded of an autumn climb I did on Matterhorn (where weather forced me down before the summit)...
Since I am all in as of this week and would need to discuss a buy on margin with my spouse, I think I will have to back down also this time.

 

[defc0n]

Sold everything else and loaded up my Roth with TSLA at $349.00.

 

[phil0909]

aggressive timelines are different than outright lies.

True. But can we be sure that $420 is not an "aggressive" price target? Or that 'secured' is not an "aggressive" description of preliminary discussions?

Good intentions do matter. But accuracy also matters.

 

[AWDtsla]

Also, Elon going through Twitter to announce this and not through them (not a single interview on CNBC, for example) also has to put them on edge. No one likes to be cut out of the loop.

Everything about this suggests they are hitched to something, Wall Street, that is made a little less relevant if this deal goes through, and that they aren't the gatekeepers of information dissemination they used to be. Not surprising that their coverage would be biased negatively.

Well neither of them build things, they both speculate on the backs of other people's work. It's less amazing that Bezos handled them for years, versus the fact he had to handle them at all. It gives a black eye to capitalism, it's pretty much the answer to the question of why we can't do new things anymore. Can't wait till this deal is over and we only get negative rants about it from keyboard warriors.

 

[Lessmog]

Remus, buying a few shares of SpaceX is lightyears away from funding $30-50 billion to take a company like Tesla private. First off, small investors do not qualify to be participants. You need to be an accredited investor. That is why Fidelity set up a special fund.

Read up on the latest news. Most of the biggest players are claiming to have no knowledge of this effort. Only Softbank says that Musk approached them back months ago and they turned him down. Even the Saudis claim to have no more interest then what they have acquired since March.

And @beachbum77 is an honourable man!
(Assuming for the moment the generic gender of bum.)

(Thanks, Bard! [JC])

 

[Reality]

In all seriousness, I really hope no one is investing any amount they can't afford to lose. No matter which side you are on.

This is not normal, and volatility might be extreme either way

 

[phil0909]

Is an 8k necessary if the board receives and offer and rejects it? (Or is still in the process of reviewing it?) As I see it Elon wasn't acting as a agent/representative of Tesla when he made that statement, he was acting as a representative of the "group" that is contemplating a buy-out of Tesla.

I.e. if I make an offer to buy Tesla out at $415 and the board laughs at me do they have to file an 8k and tell the world?

If you've 'secured funding', the Board damn well better file!

 

[Ulmo]

Two things I just thought of in concert:

• Did the Solar City merger into Tesla go through? (Helps us to understand whether taking Tesla private will go through.)
  
• Is investing into Tesla going private now more attractive to potential large investors because of it containing the merged version of what used to be Solar City? (Yes, in my opinion: a one stop shop to clean energy transportation, always able to make its own energy and turn it into vehicle transportation, even if the marketplace will during certain periods ofter it better options; at least it knows it can fully deliver on the clean energy promise, and have market experience in doing so.)

I don't think the buyer cares that the competitive environment of solar cells is really great, since it just validates the principle, and Tesla has already shown agility with respect to going outside for solar cells, as well as battery cells and automotive parts, and continues to refine that every day, bringing more new stuff in house every day so that vertical integration is always at peak practical efficiency.

 

[Boomer19]

Watching the stream of negative news from Dow Jones, Bloomberg, and CNBC, I'm reminded that Elon taking Tesla private is a huge threat to their livelihood. They cover Wall Street. Elon is saying he's opting out of Wall Street.

Also, Elon going through Twitter to announce this and not through them (not a single interview on CNBC, for example) also has to put them on edge. No one likes to be cut out of the loop.

Everything about this suggests they are hitched to something, Wall Street, that is made a little less relevant if this deal goes through, and that they aren't the gatekeepers of information dissemination they used to be. This sets a dangerous precedent. Not surprising that their coverage would be biased negatively.

yes, i said same thing a day or two ago...the tesla gravy train is over for media and WS (and they’re not going down withit a fight), but this is elon’s big FU to them.

typo corrected

 

[Ulmo]

If you've 'secured funding', the Board damn well better file!

There's no hurry.

This is still Thursday!

 

[brian45011]

there is guidance around subsequent events


https://www.aicpa.org/content/dam/a...uditattest/downloadabledocuments/au-00560.pdf


You are normally more versed than me at this stuff, but the way I read it is if funding was secured for a LBO, that would 100% need to be disclosed.


If the funding was probable, it needs to be disclosed.


So given the Q was filed on 8/6 and the announcement was on 8/7, one interpretation could be that it needed to close post the Q filing timestamp and have not been probable at that moment. Again that is one interpretation.

We're getting into "bug dust" level stuff, but there may be distinctions between what is appropriate/ advisable for SEC's quarterly filings and CPA's standards for audited annual statements.

 

[gringotuanis]

The idiots who are claiming that Musk is lying (he doesn't do that, guys) and selling the stock as if the buyout is nonexistent (oh, it's real) are confirming Musk's reasons to go private.

The downside of this is that it is going to make Musk even more determined to go private, *even if* securities law means he has to squeeze out the small investors. This sucks for small investors. He'll try to let us all stay in, but *he won't try too hard*, because he is going to be hellbent on getting off the stock market.

I really hope he just decides to delist the company without actually going "full private" (which would require cutting down to fewer than 2000 stockholders, etc.)

Yep everyone talks about their excitement of Tesla going private...but you have to realize we as retail investors may not be allowed to follow. From what I've read, the 2000 limit on # of ppl, plus having to be an accredited investor (net worth over $1 million and $200k annual income if single) will flush out alot of the retail investors.

 

[Ulmo]

Watching the stream of negative news from Dow Jones, Bloomberg, and CNBC, I'm reminded that Elon taking Tesla private is a huge threat to their livelihood. They cover Wall Street. Elon is saying he's opting out of Wall Street.

Also, Elon going through Twitter to announce this and not through them (not a single interview on CNBC, for example) also has to put them on edge. No one likes to be cut out of the loop.

Everything about this suggests they are hitched to something, Wall Street, that is made a little less relevant if this deal goes through, and that they aren't the gatekeepers of information dissemination they used to be. This sets a dangerous precedent. Not surprising that their coverage would be biased negatively.

More bluntly: a modern public company.

(Wait til someone invents a computer based currency that creates its own peer to peer stock exchanges; see how they react to that.)

 

[MP3Mike]

If you've 'secured funding', the Board damn well better file!

In your statement who is "you've"? In my case it is Elon personally in a non-official capacity. I think you are thinking that it is Tesla or Elon acting on Tesla's behalf.

Again, if I personally secure funding to buy Tesla at $315 and make an offer does the board have to file an 8-k even if they flat out reject it? (Or are still reviewing/considering my offer.)

What if I secure the funding at $500 but I never make the offer. How would the board know to file the 8-k? (Since you say that securing funding alone requires the 8k disclosure.)