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This what I said earlier today. It is happening...
Todd Burch
14-Year Member
The irony is that the FUD yesterday, which caused a bunch of shorts to jump in at $28x, has now caused those FUDsters to lose money since we're now back up to $300-ish after the majority realized yesterday's "news" was a nothingburger.
Their FUD is hurting their own financial positions.
Their FUD is hurting their own financial positions.
Yesterday a bearish engulfing with high volume, those who only read charts probably got scared. Those who understand the company was buying shares and 2021 options. Today a bullish engulfing. Thank shorts.
Or better: do we break yesterdays high (302.64) today? This would be realy nice...
I'm sure the shorts that orchestrated it made a killing, and retail shorts are losing their shirts.
CC: SEC
Chickenlittle
Banned
Todd Burch
14-Year Member
Agree. I should have clarified I was referring to the retail shorts. Not that the large-scale shorts give a damn about the retail investors anyway...
I don't know the exact setup how Bloomberg worked with the stock manipulators. If they first buy Puts, then publish the news, then close, they would have made a lot of money. Those who are not part of the circle, went short at $280, now suffer a lot. Those who wait for opportunities to add shares actually benefited from the swing. It's a big advantage if you fully understand the company you are investing/trading. FUD has no effect on me.
I'm not sure. I guess the plan was that many others jump on the bandwagon, but not many did. Today could be the covering of the ammo from yesterday.
Fact Checking
Well-Known Member
I don't think that's accurate. Note the wording:
"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."
(Emphasis mine.)
I believe this means that if for example end of March 2019 the share price is $460, +$100 above the initial conversion price of ~$360, then the hedges on the $920m face value notes will generate about $255m of cash, to be paid to Tesla.
Tesla then still has the option to convert in two ways:
- By giving the note holders TSLA stock worth $1,175m and keep the $255m cash they got from the hedges,
- Or by paying the note holders $1,175m in cash: $920m from their own cash and $255m from the hedge.
And this is where it makes sense for Tesla to pay back the notes in internally generated cash, if they can: all future earnings get diluted between 2.55m fewer shares. For a growing company that adds up quickly into a pretty substantial premium much larger than $920m.
I now christian Bob Lutz as Bob Lols.
Seriously. F this guy
Bob "SUV" Lutz and other General Motors (GM) execs dump stock as the company's bankruptcy becomes inevitable "more probable":
Six executives sold shares in the company, as the largest U.S. automaker said it's more probable than previously thought that it will need to file for bankruptcy.
Vice Chairman Bob Lutz and North America President Troy Clarke sold all their holdings in the Detroit-based company, according to regulatory filings today...
Lutz sold 81,360 GM shares, at $1.61 each, according to a filing.
Seriously. F this guy
Bob "SUV" Lutz and other General Motors (GM) execs dump stock as the company's bankruptcy becomes inevitable "more probable":
Six executives sold shares in the company, as the largest U.S. automaker said it's more probable than previously thought that it will need to file for bankruptcy.
Vice Chairman Bob Lutz and North America President Troy Clarke sold all their holdings in the Detroit-based company, according to regulatory filings today...
Lutz sold 81,360 GM shares, at $1.61 each, according to a filing.
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Much of this week's consternation could have been preempted if Tesla's PR department had been able to convince Elon to release yesterday's statement back in August when DOJ's inquiry was received.
On the positive side it has taken the news focus off the allegations in the libel suit:
Elon Musk sued by Thai-cave rescue volunteer he called a ‘child rapist’
The petition is an interesting narrative that admittedly provides only Unsworth's version (doubling down after the controversy appeared to have been abated with a "child rapist" accusation--really?)
Anyone think Elon's answer will be some thing other than a General Denial with attached Motion to Dismiss for multiple reasons?
Because the renewed controversy has a remote possibility of degenerating into a respondeat superiore action, maybe the BoD should issue some explicit guidelines as to when Elon is acting as an individual and when he is acting on behalf of the corporation.
I love it!
"Life's a piece of *sugar*, when you look at it..."
I can't remember all the words, but once you get it going in your head, it's hard to get it out. I hope Elon sings this a lot when faced with all the FUD getting tossed around. Especially the above verse.
How funny is that. I had a good laugh.
That guy does really know nothing!
Spend 15 minutes here on TMC and you know more.
Esme Es Mejor
Member
I don’t think calling reporters “useful idiots” on Twitter is helpful, even though it’s true much/most of the time.
Yesterday I said:
Didn't mean they would listen.
If this is so, then I have couple more ideas.
To shorters: Size does mater
(You are lucky that you have a choice to pick up the side in this case)
Didn't mean they would listen.
If this is so, then I have couple more ideas.
To shorters: Size does mater
(You are lucky that you have a choice to pick up the side in this case)
humbaba
sleeping until $7000
Now that hurt. But its a mute point anyway.
Sudre
Active Member
I have to laugh extra hard. Seems volume is not all that high but the SP recovered nicely. Someone lost.
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