TSLA Market Action: 2018 Investor Roundtable

[The Blue Owl]

I don't think there's any big news to announce, he's just confident Model 3 is on track.

I agree, that's why he's not worried about insider trading. He told everyone who wanted to listen that Tesla is hard at work ramping up to 5000/week on the Model 3. So, once that happens and the stock shoots up, what are the shorts going to say? "Your Honour, no reasonable person could believe such an impossible target"?

 

[bdy0627]

So would it be his purchase that is driving the price action up today?

The market was up pretty big today. It was a big green day all around.

 

[Esme Es Mejor]

The market was up pretty big today. It was a big green day all around.

True, but TSLA was up 4x NASDAQ and 8x S&P. The macros certainly helped, but there was a substantial gap.

 

[DurandalAI]

July. That’s when dual motor will be available for configuration. I suspect performance as well. That’s when the not flamethrowers will be available. Dual motor and performance versions will be available once production hits 5,000 cars a week. My personal opinion is that performance specs on the 3 will be quite impressive, a big deal will be made of it. Probably a product announcement will be made at the same time, or coast to coast FSD demo.

 

[Lessmog]

Have a look at the prices, definitely a message. 295,296,297,298,299,300,301,302

Hah! Guess I kind of beat Elon at his own game then today (in some dimension), because I bought one (1) share at 293.change right out the gate.
The victory of my lifetime -- all I could afford. But I shall cherish it forever.

 

[Intl Professor]

After market down a tad (.02%) on relatively high volume, 210,870, according to Nasdaq.

 

[vinvin218]

that is reported by NetEase , one of the major media in China NetEase - Wikipedia

 

[SteveG3]

************************* SUPER BREAKING NEWS ***********************

Breaking News: One of the China Giant Multi Media Company in touch with Tesla to purchase Huge % of shares also funding for China Gigafactory — reported by main Chinese media

my tweet : vincent on Twitter

Please help to re-tweet guys

wow, appreciate it vinvin : )

wondering if talks like this could be about shares on the open market, rather than an offering from Tesla, i.e., consistent with Elon's "don't want to raise capital" comment. does anyone know if Tesla was communicating with Tencent as they accumulated shares?

 

[xhawk101]

Chinese translation please!

 

[Mike Smith]

wow, appreciate it vinvin : )

wondering if talks like this could be about shares on the open market, rather than an offering from Tesla, i.e., consistent with Elon's "don't want to raise capital" comment. does anyone know if Tesla was communicating with Tencent as they accumulated shares?

Well someone's been soaking up those 10M shares shorts have sold in the last month or two..

 

[Remus]

Chinese translation please!

Words on the street: introduced by a famous international investment bank, a big firm from China is in talk with Tesla for providing funding for Tesla's China factory in exchange for stocks.

 

[MattEnth]

************************* SUPER BREAKING NEWS ***********************

Breaking News: One of the China Giant Multi Media Company in touch with Tesla to purchase Huge % of shares also funding for China Gigafactory — reported by main Chinese media

my tweet : vincent on Twitter

Please help to re-tweet guys

Hrm, lots of questions:

1) Can you post a link to the actual story? Instead of screenshots? Here is the link vincent posted on twitter.

2) Seems weird timing. Wouldn't this imply that Elon just violated insider trading laws in textbook fashion? He bought 10M worth of shares today with the knowledge of an upcoming material announcement?

3) Also seems to violate Elon's insistence that Tesla would not raise capital. This seems almost exactly like a capital raise?

4) Is the funding earmarked for a Chinese Gigafactory? If so, how does the project help Tesla's current cash crunch?

5) Why is a media company funding a factory?


Google translate:

 

[Sudre]

Words on the street: introduced by a famous international investment bank, a big firm from China is in talk with Tesla for providing funding for Tesla's China factory in exchange for share ownership.

So not a company buying TSlA shares then?
A company loaning Tesla money with shares as a down payment?
If the company is buying shares directly from TSLA then that is a CAP raise right?

(edit... all are questions)

 

[Remus]

So not a company buying TSlA shares then.
A company loaning Tesla money with shares as a down payment?
If the company is buying shares directly from TSLA then that is a CAP raise right?

My English is not very good the Chinese version says the firm wants to own shares of Tesla

 

[Remus]

************************* SUPER BREAKING NEWS ***********************

Breaking News: One of the China Giant Multi Media Company in touch with Tesla to purchase Huge % of shares also funding for China Gigafactory — reported by main Chinese media

my tweet : vincent on Twitter

Please help to re-tweet guys

I would suggest caution when investing based on this news. The source media is not very kin on fact checking, and the text says "rumor on the street..."

 

[SteveG3]

wow, appreciate it vinvin : )

wondering if talks like this could be about shares on the open market, rather than an offering from Tesla, i.e., consistent with Elon's "don't want to raise capital" comment. does anyone know if Tesla was communicating with Tencent as they accumulated shares?

Words on the street: introduced by a famous international investment bank, a big firm from China is in talk with Tesla for providing funding for Tesla's China factory in exchange for share ownership.

Perhaps by "I specifically don't want to" raise capital, Elon was referring to working with Wall Street to sell a secondary stock offering or a debt offering to institutional investors, not a new partnership that involved some Tesla ownership to the partner in the exchange. These are materially different though, I'm confident I'm not the only person here who wouldn't be surprised if some try to present such a scenario as Elon contradicting himself. Very interesting : )

 

[Mike Smith]

Perhaps by "I specifically don't want to" raise capital, Elon was referring to working with Wall Street to sell a secondary stock offering or a debt offering to institutional investors, not a new partnership that involved some Tesla ownership to the partner in the exchange. These are materially different though, I'm confident I'm not the only person here who wouldn't be surprised if some try to present such a scenario as Elon contradicting himself. Very interesting : )

The funding wouldn't be required until next year. He only said no cap raise this year.

 

[Zhelko Dimic]

Hrm, lots of questions:

...
2) Seems weird timing. Wouldn't this imply that Elon just violated insider trading laws in textbook fashion? He bought 10M worth of shares today with the knowledge of an upcoming material announcement?
...

You're silly. Those laws are to protect shareholders, not shorts. No one cares if CEO buys and stock rises, law is there to prevent management from getting rich at the expense of shareholders, i.e. talk up stock, and sell before bad news hits.
You as a short are not the shareholder, you don't have protection... which is as it should be, designated role of shorts is to help expose bad companies before more shareholders get hurt, not to kill weak and/or good ones...

 

[Irishjugg]

You mean the one that's now over a month behind schedule? The one that was targeting 2500/week from March 25 - 31 (and still hasn't hit that target)? The one that still has 2.35B CapEx planned for this year, despite a negative 2.2B working capital? The one that was promised to be sold for 35k, but the cheapest option is 48k+?

I don't think it's a solid investment strategy to hang your hopes on Elon's promise of 5k/week. It looks like they are running out of cash well before that target.

Just to understand the bulls here: what do you think happens to TSLA if they can't hit 5k/week?

They would raise capital.

That's not something that will happen though, at this point hitting 5k is basically assured.

 

[theschnell]

Perhaps by "I specifically don't want to" raise capital, Elon was referring to working with Wall Street to sell a secondary stock offering or a debt offering to institutional investors, not a new partnership that involved some Tesla ownership to the partner in the exchange. These are materially different though, I'm confident I'm not the only person here who wouldn't be surprised if some try to present such a scenario as Elon contradicting himself. Very interesting : )

Yeah, a cap raise from private placement rather than public. Definitely different than what analysts were referring to, but still technically a cap raise...