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I saw Zach liked it! Zach, can you propose this to Elon? You have his ear!
ZachShahan
Active Member
Snap: Elon Musk on Twitter
And remind me, who voted several months back that Elon shouldn't be chairman?
And remind me, who voted several months back that Elon shouldn't be chairman?
ZachShahan
Active Member
If someone wants to draft something up and make sure it makes sense, I can publish.
I don't know enough about this stuff to edit/vet it well, so would just like some assurance from investment experts here that there are no glaring mistakes/holes in the argument. I'd also run it by my two top finance/investment guys.
If all the retail investors have a safe account to hold our shares, Elon just has to talk to the institutionals, and we would have crushed the short supply
I'll write a draft and post it for everyone to edit.
He didn't say which week. I suggest using the same week next year.
My understanding is that if you are just holding shares, not purchased on margin, your shares can't be loaned out without you singing up for it. So we don't need some special brokerage house deal.
The majority of the shares available for lending are coming from institutional investors not retail investors.
isn't the implication that the Top Institutional Holders like T.Rowe, Vanguard, Fidelity etc are lending shares from their indexes funds?
Buckminster
Well-Known Member
CNBC Josh is neither TSLA bull nor bear. However, he just admitted that there is a reasonable chance of Softbank etc. buying equity. With the SP so low, why aren't multiple funds etc. buying just a small amount given that they know more than us? When will we find out who bought in Q3?
Short lending is only one piece of the puzzle in the short game. I'm not surprised if BlackRock lends stocks to the shorts. Collectively the fund/brokerage industry makes $20B from lending interest each year.
As I read it a while back, GS and another company sell CDS, then they short the stock or buy Puts to protect the CDS risk. This turns into a self reinforced cycle, more stock drop drives more CDS demand, some people just buy CDS to profit from it, not only as an insurance for the bond holdings. If the stock has lots of investors who are highly leveraged, the drop could trigger margin calls. Then more drop.
If there are equivalent instruments similar to CDS but on the long side, then we have a fair game. I would load up on the CDS, shorts have no chance.
As I read it a while back, GS and another company sell CDS, then they short the stock or buy Puts to protect the CDS risk. This turns into a self reinforced cycle, more stock drop drives more CDS demand, some people just buy CDS to profit from it, not only as an insurance for the bond holdings. If the stock has lots of investors who are highly leveraged, the drop could trigger margin calls. Then more drop.
If there are equivalent instruments similar to CDS but on the long side, then we have a fair game. I would load up on the CDS, shorts have no chance.
sundaymorning
Active Member
Tesla isn’t the only company affected by the recent selloff. The jobs market is doing ok and unemployment is at a 49 year low so the street is digesting what this all means. Typically I think October is a sell month anyway, so it’s amplified a bit momentarily. As a hardened long who has experienced many of theses cycles, it’s important to keep our eyes on the goal, profits could be just one month away. A relief rally will likely ensue once this occurs. Stay strong and find something to do that will keep yourself preoccupied for the next several days. This too will pass, model X days feels exactly like it does presently. I hope Elon can learn from his tweeting mistakes, my hope is that he’ll eventually come around and learn to keep his cool.
Mark Zuck. was lucky enough to experience multiple lawsuits at a young age, he’s learned his lesson... now it’s Elon’s turn. I’m not selling, we’ve come too far, profits are just around the corner
Mark Zuck. was lucky enough to experience multiple lawsuits at a young age, he’s learned his lesson... now it’s Elon’s turn. I’m not selling, we’ve come too far, profits are just around the corner
Softbank is $2.25B into Cruise, not sure why they'd then buy into Tesla?
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Toolsmack
Member
This is the question I have been asking for the past few weeks.
And I also have an uneasy feeling that if they know more than us and aren’t buying then there is a reason.
Buckminster
Well-Known Member
Joe F
Disruption is hard.
David Einhorn is still at it with another letter out blasting Tesla. CNBC post here. Perhaps adding to the SP decline a, tad,today along with the overall market dip on rising rates. His failure to see anything but the numbers blinds him and others to the tsunami of Tesla cars being delivered (sold, for those parking lot loonies here) in record numbers. And this is just in the states. His Tesla Herbalife moment is going to crush his fund.
I also feel Einhorn started posting in this thread today as well, based on the increased FUD level.
I also feel Einhorn started posting in this thread today as well, based on the increased FUD level.
Damn!! I had a margin call and had to sell some shares! I still believe in TSLA, but I got too optimistic. I know better and still screwed up. I sure wish Elon would lose his Twitter!
Feel free to add.
First draft below. Would welcome everyone's thoughts and edits. IANAL, but I don't see any reason we shouldn't be able to make this happen.
Dear Elon/Tesla board,
Thank you all for the hard work that Tesla has done to push the limits of innovation and bringing us to a sustainable future. We as retail investors also share your concern on short selling. Short selling, when done right, can have a positive impact for society by allowing people to de-risk and create efficient capital markets. With Tesla, we’ve seen shorts who will publish demonstrably false slander to actively hurt the company. That is not beneficial, and even criminal.
We share your opinions on short selling, but until now, we have not had an alternative. We ask that the IR team at Tesla helps us as follows:
Up until now, we have not had options where our shares aren’t deployed against us. We encourage the Tesla IR team to look into this idea, and if the legal team determines it to be feasible, help provide the Tesla community/supporters an option.
Respectfully,
The Tesla Faithful
First draft below. Would welcome everyone's thoughts and edits. IANAL, but I don't see any reason we shouldn't be able to make this happen.
Dear Elon/Tesla board,
Thank you all for the hard work that Tesla has done to push the limits of innovation and bringing us to a sustainable future. We as retail investors also share your concern on short selling. Short selling, when done right, can have a positive impact for society by allowing people to de-risk and create efficient capital markets. With Tesla, we’ve seen shorts who will publish demonstrably false slander to actively hurt the company. That is not beneficial, and even criminal.
We share your opinions on short selling, but until now, we have not had an alternative. We ask that the IR team at Tesla helps us as follows:
- Work with a reputable brokerage firm(e.g. Fidelity) to provide retail investors an option, so that at no one-time or maintenance fees to us, we can transfer our shares into a particular account at that firm. Even if Tesla has to spend a small amount of money for administration, we believe this option brings investors closer with the company
- The brokerage firm will then agree to not lend out shares to shorts, and in all other capacities, act like a standard brokerage account (both for standard accounts and IRAs)
- Then, we would request that you at Tesla’s CEO work with institutional investors to get them to not lend shares short. We hope you would only have to speak with 10-15 people.
Up until now, we have not had options where our shares aren’t deployed against us. We encourage the Tesla IR team to look into this idea, and if the legal team determines it to be feasible, help provide the Tesla community/supporters an option.
Respectfully,
The Tesla Faithful
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