Tesla doesn't need more than honest/accurate/fair reporting. Having a history of blatantly pro-Tesla news does not automatically put them in that category. Furthermore, trying to balance news by weighing one bias against another doesn't work. You just get twice the bullshit.
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Tesla doesn't need more than honest/accurate/fair reporting. Having a history of blatantly pro-Tesla news does not automatically put them in that category. Furthermore, trying to balance news by weighing one bias against another doesn't work. You just get twice the bullshit.
He’s been saying that for years. All he knows is how to leverage a truck platform to pay for the others.
The hedge strike is at the initial conversion ration --$359.87 If it's below the strike, the IB hedge writers pocket the net premiums paid (they learned an expensive lesson with the 2018 notes)
Trust me they need the cash and will use it to pay down debt that is coming and to pay off suppliers whom they pushed back on. The bills do come due. There is no surplus for a stock buyback.
I'm all for "not an advice" and hope the tradition continues.
However, the rampant misuse of "loose" instead of "lose" and "it's" instead of "its" drive me up the wall.
This begs the question: Is there something worse?
From that article:
“At last check, Tesla shares were rebounding a bit, up 3% while the Dow Jones Industrial Average (^DJI) enjoyed a 200-point rally.”
NASDAQ, which Tesla is actually listed on, is and has been down today. This is the kind of misleading BS we talk about in current media.
Toolsmack
Member
Oh what I wouldn’t give for a TLRY short squeeze to happen to TSLA
I had once the same opinion but since about a month it changed. Electrek is not any more what I would call a balanced and on facts based media for me. At least as of now. I followed them since years and did listen to almost every weekly podcast. IOW there is a lot of material I can relate to.
Since a while Fred tend to post headlines that look like hit pieces. Fred's reasoning is lately very much driven by personal points of views and information without source but just hearsay or his believe.
Also some information they posted could be proven to be wrong with a quick internet search. Finally they blocked a couple of members of TMC that I recognized as balanced and down to earth.
Last not least there seem to be a tendency to bring everything out as quick as possible instead to do some thorough decent research first. That research is what I expect from a decent journalist or blogger. For me the one or the other is not different. I don't give a blogger a free pass just because he is a blogger.
Finally if you write something that was proven to be wrong I expect that people are mature enough to acknowledge it and say it loud and clear. I did not hear that one time from Fred.
So, to summarize Elektrek has been pretty disappointing for me lately and I hope Fred and Seth find a track back to their previous good work.
But that ignores the hedge. They were never going to issue new equity to use in the conversion of the notes -- they spent $186 million buying something like call options to use equity to settle the notes without issuing new equity.
"DESCRIPTION OF CONVERTIBLE NOTE HEDGE AND WARRANT TRANSACTIONS
In connection with the pricing of the notes, we intend to enter into convertible note hedge transactions with one or more of the underwriters or their respective affiliates or other financial institutions (the “hedge counterparties”). The convertible note hedge transactions will cover, subject to anti-dilution adjustments substantially similar to those applicable to the notes, the number of shares of our common stock that are initially underlying the 2019 notes and the 2021 notes. Concurrently with entering into the convertible note hedge transactions, we also intend to enter into warrant transactions with the hedge counterparties relating to the same number of shares of our common stock, with a strike price of $512.6562, with respect to the warrants relating to the 2019 notes, and a strike price of $560.6388, with respect to the warrants relating to the 2021 notes, in each case subject to customary anti-dilution adjustments. [which can be lowered as discussed]
We intend to use approximately $186.3 million of the net proceeds from this offering to pay the cost of the convertible note hedge transactions (after such cost is partially offset by the proceeds to us from the warrant transactions). If the underwriters exercise their option to purchase additional notes, we may sell additional warrants and use a portion of the proceeds from the sale of the additional notes, together with the proceeds from the sale of the additional warrants, to enter into additional convertible note hedge transactions.
The convertible note hedge transactions are expected generally to reduce the potential dilution and/or offset potential cash payments in excess of the principal amount upon conversion of the 2019 notes and the 2021 notes in the event that the market price per share of our common stock, as measured under the terms of the related convertible note hedge transactions for the 2019 notes and the 2021 notes, is greater than the strike price of the related convertible note hedge transactions for the 2019 notes and the 2021 notes, which, for each convertible note hedge transaction, initially corresponds to the conversion price of the notes relating to such convertible note hedge transaction, and is subject to anti-dilution adjustments substantially similar to those applicable to the conversion rate of the notes. If, however, the market price per share of our common stock, as measured under the terms of the warrant transactions relating to the 2019 notes and the 2021 notes, exceeds the strike price of the warrants relating to the 2019 notes or the 2021 notes, as the case may be, there would nevertheless be dilution to the extent that such market price exceeds the strike price of the warrants relating to the 2019 notes or the 2021 notes, as the case may be.
We will not be required to make any cash payments to the hedge counterparties upon the exercise of the options that are a part of the convertible note hedge transactions, but will be entitled to receive from them a number of shares of our common stock and/or an amount of cash generally based on the amount by which the market price per share of our common stock, as measured under the terms of the convertible note hedge transactions for the 2019 notes and the 2021 notes, is greater than the strike price of the convertible note hedge transactions for the 2019 notes or the 2021 notes during the relevant valuation period under the relevant convertible note hedge transactions. Additionally, if the market price per share of our common stock, as measured under the terms of the warrant transactions relating to the 2019 notes and the 2021 notes, exceeds the strike price of the warrants relating to the 2019 notes or the 2021 notes, as the case may be, during the relevant measurement period at the maturity of the warrants (i.e., on the applicable expiration dates), we will owe the hedge counterparties a number of shares of our common stock in an amount based on the excess of such market price per share of our common stock over the strike price of the warrants relating to the 2019 notes or the 2021 notes, as the case may be.
In connection with establishing their initial hedge of the convertible note hedge and warrant transactions, the hedge counterparties or their affiliates expect to enter into various derivative transactions with respect to our common stock concurrently with or shortly after the pricing of the notes, including with certain investors in the notes. This activity could increase (or reduce the size of any decrease in) the market price of our common stock or the notes at that time.
In addition, the hedge counterparties or their affiliates may modify their hedge positions by entering into or unwinding various derivatives with respect to our common stock and/or purchasing or selling our common stock or other securities of ours in secondary market transactions following the pricing of the notes and prior to the maturity of the 2019 notes and the 2021 notes (and are likely to do so during any observation period related to a conversion of notes). This activity could also cause or prevent an increase or a decrease in the market price of our common stock or the notes, which could affect your ability to convert the notes and, to the extent the activity occurs during any observation period related to a conversation of notes, it could affect the amount and value of the consideration that you will receive upon conversion of the notes.
The convertible note hedge transactions and the warrant transactions are separate transactions entered into by us with the hedge counterparties, are not part of the terms of the 2019 notes or the 2021 notes and will not change the holders’ rights under the notes or the Trustee’s rights or duties under the indenture. As a holder of the notes, you will not have any rights with respect to the convertible note hedge transactions or the warrant transactions.
For a discussion of the potential impact of any market or other activity by the hedge counterparties or their affiliates in connection with these convertible note hedge and warrant transactions, see “Underwriting—Convertible Note Hedge and Warrant Transactions” and “Risk Factors—Risks Related to the Notes—The Convertible Note Hedge and Warrant Transactions May Affect the Value of the Notes and Our Common Stock”.
Fact Checking
Well-Known Member
I think the all time high was slightly above 39 million, so it can certainly go higher. The apparent cap of the past couple of of months of trading might be indicative of the group of shorts not broadening over a certain level.
This might have changed this month: the various negative news must have convinced value shorts that they are right, all the right kind of noises were made: 'fraud', 'Elon unstable', 'criminal', 'losses', 'graveyard'. If you were convinced before that Tesla is a shorting opportunity there's little reason to believe otherwise today - and the recent step drops might also have convinced quant shorts and more technical traders.
Altogether it's a pretty explosive scenario I think, for both shorts and longs: very high pressure, a loaded spring, a barrel full of high explosives, etc. etc.
yes, if this 5m chart keeps up with its trend we might as well get $300 today. it is super bullish with high highs and higher lows. all stars aligned right now!
We're $2 away from $300. Get ready for the fight...
Fact Checking
Well-Known Member
The top responses to the re-tweet are some really fine pieces of FUD-busting.
Genius!
Don't tell the good Bob that he's helping us to assault the $300 resistance...
Fact Checking
Well-Known Member
Anyone providing free sub-$300 buy liquidity at this point is a special kind of dumb: $296 bounced a couple of days and price broke through - why should it have bounced today or tomorrow? Same argument for $300.
I hope I'm not jinxing it!
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