Okay that is confusing. Shorts buying shares to cover will drive up the price giving you more for your shares. Why would you NOT want that? What is your sell price?
Right. It has been asserted. No more assertion needed. I think there's some filing that has to be done per SEC rules within a certain amount of time, and I'm sure they are aware of that and will do so. That's just paperwork. Whether or not they reveal anything more in that paperwork is unknown.
Elon said no investor would have control. Wonder if the juice to get China to agree to a "privately" owned foreign business in China was allowing them to make a substantial investment - but not controlling - in the TSLAP he was putting together. Plausible? After all, I think TSLA is the first foreign entity that secured Chinese approval to own their whole business there.
I look at it like this: if the sale doesn't go through, then stock price wavers between 300 and 700 for the next 3 years as more products come online and there's twenty new FUD articles every day, union strikes, fires, sabatoge, laws written to hurt Tesla, everything under the sun, and Elon will move to Mars. But if the sale does go through, then my stock will appreciate with the company in a natural way, with a fraction of the resistence. I'm in favor of the successful approach. As long as prices are depressed as they are today, the buyer can position themselves for a nice gain no matter what happens (it's easy to dump a few dozen billion dollars of $TSLA at a higher price later on), and the actual buyout will be more likely. An uncertain possible temporary spike from shorts who might have, for all we know, already totally gotten out, is only going to hurt the long term. Sure, as a short time bill payer, that's kinda nice, but I'm looking at the long term here.
I trust Gwynne Shotwell to keep SpaceX on track and on mission, at least. And I think if necessary and given a chance JB Straubel could do the same for Tesla, but it would be a major distraction for him, and being public currently there's a good chance things go bad for Tesla in the Jailhouse Musk scenario. The rest would likely be even worse off.
It is not foolish at all. He gets to eat cake and have it - do bullish thing yet appear like bear (i bet he does count on deal being successful). Rest is just posturing and puffing out chest.
LOL...Have you looked at the volumes recently? They are trading 8+ million shares a day average. They may have been covering the last few days just as a precaution and replacing them with call options to protect the rest. If the price gets to $500 no one is going to take $420 so the buyout would be a bust.
Exactly. I don't know why no one in the media seems to understand that the shorts are buying back something like 1/2 of the shares necessary to close Elon's deal that will burn their position into the ground. Poetic justice.
Here is the math according to Gene Munster in the post above:
"Insiders, including Musk, own just over 25% of Tesla shares. Individual investors account for 12% of shares, and large institutional investors like Fidelity and T. Rowe Price make up the remaining 63%. We believe nearly all investors would be supportive of going private, but not all institutional funds would be able to participate in private investments. For that reason, we assume half of Tesla’s institutional ownership (~30% of the company) needs to be bought out. Individual investors, who see greater upside than 13.5%, would likely prefer to maintain ownership if they are able to, depending on fund structure and accredited investor requirements. In short, the more shareholders that decide to roll their shares into the private entity, the less funding Tesla will need for a buyout. By our math, Tesla will need between $25 and $30B."
But Munster does not account for the fact that there are effectively 205 million shares outstanding because shorts have borrowed 35 million on top of 170 million actual shares outstanding.
Once the short sellers are forced to buy those shares back for ~$13billion, the new investors only need to pay something like $13-$15B to get the deal closed. The shorts buy out the rest of the institutions and retail shareholders who don't want to be part of the private Tesla.
Where did you get 23 M. Today’s report 35M short as of July 31. After last two days maybe more
