Umm because why. These are one statement not two. One doesn't need funding committed to consider something.
Duh.
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Umm because why. These are one statement not two. One doesn't need funding committed to consider something.
Duh.
K_Dizzle
Member
Very similar to teslas credit rating being lowered right before quarterly delivery numbers. These guys know exactly what their doing.
Right,
But I believe if we don’t start the day triggered the. at opening bell shorts will be more than eager to substantially add to their position to:
Increase their position because this affirms a popular thesis.
Keep the SP above $280
As a result, they’ll have a ton of short term ammunition, and beat the drum right through earnings.
If that is the case the usual suspects will be blasting the internet with quality concerns, bankruptcy concerns, and that isn’t good for a brand no matter how you slice it. Every bit of good news will be swatted away while anecdotal bad news will be presented as the norm. This will be increased because there will be more skin in the game.
Alternatively, if triggered at opening bell then you have a ceiling that would prevent a substantial amount of shares making that temporary transfer which will save a major depression in the share price. The best reassurance on the first day that shorts will be back in full force should be the day deliveries are announced.
That might be believable, but I don't think so, because SEC investigations come and go. It's possible that the news of an SEC investigation wouldn't come out until it was already closed.
Imagine what would happen if Tesla released good Q3 results. Then imagine what would happen after that if SEC then sued.
I think suing before the results gives a much better outcome.
In hindsight Elon’s unsollicited tweet of 25 September about his love for Tesla owners makes sense. He may have had their support in mind at a time when he was contemplating the SEC settlement offer, and before jumping into the deep.
I think the conspiracy theories about the timing of the suit should stop. I don't know why they rushed the suit, but honestly I would much rather deal with it now then after sales numbers and/or quarterly financials come out. Much better this way.
You misremember, following the Q3 EC, it jumped 15%, then over the next week drifted in the 340 range. Then it jumped up to 365 on the news that Saudi had invested $1-2 billion, THEN Elon Tweeted.
bhtooefr
Active Member
CTO isn't the right position for him I suspect, and it'd be a position he couldn't hold anyway if the SEC gets their way.
And he's fighting this, so the only stepping down in the near future would be the board or shareholders making him. Which, apparently the board's reiterated support for him, so...
NYT usual hit piece. But even they could stop themselves from some comparisons:
Holmes of Theranos, banned for ten years for severe fraud in my eyes.
Mark Cuban threatened with two years for insider trading. Won in court.
Some hedge fund trader whose portfolio managers were insider trading (shocking!) got two years banned from managing money.
Musk, they go after for lifetime ban. This is personal as it always seems to be with Elon.
NYT finished it up by stating that hundreds of Model 3 have been seen in parking lot in CA! And that some need repairs and had misalignments and body gaps! Nice last paragraph.
Will admit am distressed by all this. The timing sucks.
Holmes of Theranos, banned for ten years for severe fraud in my eyes.
Mark Cuban threatened with two years for insider trading. Won in court.
Some hedge fund trader whose portfolio managers were insider trading (shocking!) got two years banned from managing money.
Musk, they go after for lifetime ban. This is personal as it always seems to be with Elon.
NYT finished it up by stating that hundreds of Model 3 have been seen in parking lot in CA! And that some need repairs and had misalignments and body gaps! Nice last paragraph.
Will admit am distressed by all this. The timing sucks.
We should be pleased Elon is fighting this. The guy has conviction which is why I invest in Tesla. I believe in him more than I believe in myself which is why I have invested as much financially and emotionally in Tesla as in my own business. He has a lot more expert knowledge than I have, is more highly skilled and works way harder!
The drama on the Tesla share price is annoying, but I will take this as an opportunity to buy a few more shares (I don't have much cash left!) and be on my merry way.
The drama on the Tesla share price is annoying, but I will take this as an opportunity to buy a few more shares (I don't have much cash left!) and be on my merry way.
Fact Checking
Well-Known Member
I agree with @ItsNotAboutTheMoney that it's much better to have this over with now, and any price reaction after the release of the Q3 delivery report early next week and the Q3 financials early November would be with this negative news already priced in.
In fact something like this was expected already, as it was clear from last week's leak that the SEC was investigating.
Shorts could possibly have stopped a post Q3 (delivery or financials) rally if the SEC filed its suit in October.
Wooloomooloo
Member
There is no way the price will be below $250 at close today, in fact I would not be surprised if it's closer to $290 with a late rally.
This is incorrect. See Basic vs Levinson. That ruling is essentially : "it is perfectly fine to keep silent on takeover and merger talks, but once you talk about it, you must not mislead nor act recklessly". Basically : saying "No Comment" is fine but "Not that I am aware of" (while you are aware) is not. Or as the supreme court has it :
SCOTUS in Basic vs Levinson said:
The suit alleges there was not even a verbal agreement to the extent represented by Musk (material elements named in the suit are $420 share price; retail shareholders can continue to invest; the only contingency being a shareholder vote) The suit also alleges that even if Elon was honestly thinking there was agreement, as an informed CEO he should have known there wasn't. That seems a reasonable position to take. The much smaller yet less complicated SolarCity takeover took months. No reasonable person going through that experience would then expect to do a deal at least 10 times that size on the basis of a 45 minute meeting. No reasonable person would assume that they did not need to discuss a price target with a potential buyer. No reasonable person would assume they could propose a retail investor structure that circumvents legal protections for said investors in private companies without discussing this with appropriate financial and legal council. Especially if you are aware of such limits as CEO of another high profile private company.
ZachF
Active Member
Don't forget today is also the last trading day of Q3.... If you wanted to time a release to help short's quarterly reports it would be hard to pick a better day than yesterday.
My biggest concern is. Let’s say this quarter is great. They need to keep ramping up. How long can employees keep up this marathon. And they will probably still have QC issues while they do ramp up. It’s hard to QC stuff when the procedures keep changing to make things faster.
I'd *much* rather have a car from the quarter-end rush of Q3 than the quarter-beginning of Q2. There's zero doubt in my mind that the variation in quality within any quarter is less than the variation of quality between quarters.
save itWhat the heck? I went to bed with dreams of buying in the $250s today and I wake up and the pre-market is $275? Come on, people! Clearly Tesla is DOOOOOOOMED! Sell sell sell!!! Short short short!!!
Ugh.... I never get to spend this powder....
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Chartered321
Member
SEC suing Musk was only a matter of time, it surprises me the stock price reacted that much. Accusations are legitimate but he’ll eventually win. It’s the last bad news and it was expected to happen quite soon.
I’ll buy again at < 270.
I’ll buy again at < 270.
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