TSLA Market Action: 2018 Investor Roundtable

[capster]

Question I’ve had on my mind for a bit, my apologies if it is an ignorant question.

Remember the saying attributed to J. Paul Getty “If you owe the bank $100 that's your problem. If you owe the bank $100 million, that's the bank's problem.”

Let’s say you’re a big enough player that your broker allowed you to use shares, say NVDA, as collateral in your margin account against your billion dollar TSLA short position(s).

TSLA has gone from $250 to $350, meanwhile NVDA has gone from $289 to $164.

Is it possible some large shorts simply *cannot* cover and they or their brokerage can only kick the can down the road praying for reprieve? Is this or some similar variant a credible scenario? If so, what’s a viable strategy (besides stalling with FUD, yada, yada) for them, if any?

 

[LoveTSLA]

Huge huge volumes at last 5 minutes. Nice!

 

[Todd Burch]

Damn, me likey the spikey*!

*Technical term.

 

[Chickenlittle]

Question I’ve had on my mind for a bit, my apologies if it is an ignorant question.

Remember the saying attributed to J. Paul Getty “If you owe the bank $100 that's your problem. If you owe the bank $100 million, that's the bank's problem.”

Let’s say you’re a big enough player that your broker allowed you to use shares, say NVDA, as collateral in your margin account against your billion dollar TSLA short position(s).

TSLA has gone from $250 to $350, meanwhile NVDA has gone from $289 to $164.

Is it possible some large shorts simply *cannot* cover and they or their brokerage can only kick the can down the road praying for reprieve? Is this or some similar variant a credible scenario? If so, what’s a viable strategy (besides stalling with FUD, yada, yada) for them, if any?

Just asking for a friend?

 

[mongo]

Question I’ve had on my mind for a bit, my apologies if it is an ignorant question.

Remember the saying attributed to J. Paul Getty “If you owe the bank $100 that's your problem. If you owe the bank $100 million, that's the bank's problem.”

Let’s say you’re a big enough player that your broker allowed you to use shares, say NVDA, as collateral in your margin account against your billion dollar TSLA short position(s).

TSLA has gone from $250 to $350, meanwhile NVDA has gone from $289 to $164.

Is it possible some large shorts simply *cannot* cover and they or their brokerage can only kick the can down the road praying for reprieve? Is this or some similar variant a credible scenario? If so, what’s a viable strategy (besides stalling with FUD, yada, yada) for them, if any?

Unless there was a huge gap down, the brokerage would have enough margin required to cover the position. If the account is worth less than the loan, the brokerage can go after the account holder directly.
Liquidation Margin
small fish level:
Help! My short position got crushed, and now I owe E-Trade $106,445.56
paywalled big fish (you get the drift from the lead)
Deutsche Bank Wins $8 Billion Sebastian Suit on Margin Calls

 

[AMN]

Noiiice close! Have a nice weekend.

 

[Unpilot]

Sorry SpaceCash...you got close on your lotto.

 

[EVNow]

Interesting that the Reuters news dropped just a few minutes before the close - so even as NASDAQ went down TSLA was pushed up.

 

[SpaceCash]

VERY GOOD CLOSE!

 

[M3Rider]

No, the point is that you're right that 7k end of Nov will not be sustained. But targeting all systems to hit 7k by end of Nov indicates they may be targeting sustained 7k by end of Q. As opposed to prior quarters where they tried to just hit the 'all systems capable' at the very end of the Q.

If past history is a prediction of future results, then in the past it took 3 months between hitting a new target and sustaining it. So, lets say you're being optimistic here.

 

[Earlian]

Interesting that the Reuters news dropped just a few minutes before the close - so even as NASDAQ went down TSLA was pushed up.

Sorry, I just read the last 10 pages, but I may have overlooked the news you’re talking about. Could you pls share.

Oh and what a nice TSLA day!

Strong and with your adressed separation from nasdaq in the end! That was about time!

 

[Cherry Wine]

Interesting that the Reuters news dropped just a few minutes before the close - so even as NASDAQ went down TSLA was pushed up.

What Reuters news?

 

[capster]

Just asking for a friend?

Funny, but to answer your question, fortunately, no.

Unless there was a huge gap down, the brokerage would have enough margin required to cover the position. If the account is worth less than the loan, the brokerage can go after the account holder directly.
Liquidation Margin
small fish level:
Help! My short position got crushed, and now I owe E-Trade $106,445.56
paywalled big fish (you get the drift from the lead)
Deutsche Bank Wins $8 Billion Sebastian Suit on Margin Calls

Thank you.

I'm just curious about the scale of risk and exposure to the brokerages/banks themselves were a number of large shorts to be completely wiped out offering no recourse.

If there is reason for concern (I'm thinking of the institutional level, not the level of the short account holder nor the larger systemic level), I wonder how the grown-ups at the brokerages and banks would navigate if they had to unwind the large amount of short interest still out there?

 

[Right_Said_Fred]

Weekend has started. Hopefully it’s not an excuse for all kinds of non-market related babble.

 

[X Fan]

Volkswagen could build up to 15 million electric cars over several years on its new electric vehicle production platform, the company said on Friday, adding that its Chief Executive Herbert Diess had misspoken in an interview on Monday.

VW says could build up to 15 million electric cars

This caught my eye:
“Labour unions, who control half the seats on Volkswagen’s supervisory board, need to sign off on the plan to create global production capacity for 1 million electric vehicles by 2025 amid their concerns that assembling battery driven cars will require fewer workers.”

I’m presuming they will ultimately come on board but for me the delta for the future is stark: produce EV’s or have no jobs.

 

[avoigt]

This caught my eye:
“Labour unions, who control half the seats on Volkswagen’s supervisory board, need to sign off on the plan to create global production capacity for 1 million electric vehicles by 2025 amid their concerns that assembling battery driven cars will require fewer workers.”

I’m presuming they will ultimately come on board but for me the delta for the future is stark: produce EV’s or have no jobs.

Its actually the other way around here in Germany.

Some key people in the Unions are fighting since years that the automakers finally waking up and start to invest in EV development and production. Unions and worker at Daimler have been the ones making hard pressure to the board to go electric.

The thought here is if you don't do you will be lost with no job and that although they acknowledge less workers are needed for EV production.

To clarify that is not the position of all people that are in the unions but the majority claims that EVs need to be a part of the mix and argue that the management did not make the required steps fast enough.

Daimler: (...)"In Untertürkheim eskalierte der Streit im Sommer: Der Betriebsrat sagte Überstunden für das aus allen Nähten platzende Werk ab, weil der Konzern keine Zusagen machen wollte, wie das Werk an der Elektrostrategie von Daimler beteiligt werden soll." (...)Elektromobilität in Stuttgart: Daimler-Motorenwerk soll Batterien entwickeln

 

[anthonyj]

Gonna admit, Monday scared the poo out of me. Sold 20% of my calls on Tuesday (for large profit at least). Still have 45k in OTM calls expiring Jan/March. We're going to Mars folks.

 

[Zaxxon]

If past history is a prediction of future results, then in the past it took 3 months between hitting a new target and sustaining it. So, lets say you're being optimistic here.

Sure, always optimistic. The point, regardless of how any of us spins it, is that in the past they've typically stretched for their goal at the very end of the quarter. Here, they're stretching for it with a month to go in the quarter. That's an improvement, full stop.

 

[X Fan]

What Reuters news?

I’m presuming the clarification of VW CEO’s misstatement re future EV output.

Lol: it was only off by 35 million.

 

[X Fan]

Its actually the other way around here in Germany.

Unions are fighting since years that the automakers finally waking up and start to invest in EV development and production. Unions and worker at Daimler have been the ones making hard pressure to the board to go electric.

The thought here is if you don't do you will be lost with no job and that although they acknowledge less workers are needed for EV production-

So Reuters got it wrong? What a surprise....