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TSLA Market Action: 2018 Investor Roundtable

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In other news. Oddly, two minutes before the market opened, IB's TSLA borrow rate was 10.38%. 6 minutes later the rate became 3.61% and held. I much preferred the 10% :oops:

Meanwhile, the amount that Fidelity pays to borrow (rebate rate) dropped from 1.875% yesterday to 1.75% today. Also, a good chunk of my lent shares were returned to me yesterday late afternoon.

Further loosening in this market, unfortunately.
 
  • Informative
Reactions: EinSV
Indeed. The China news is a huge long term positive for Tesla. The Model 3 production suspension for a few days is a minor short term blip. Meanwhile, Model S & X production is charging ahead at full steam.

Too many traders get fixated on short term noise. Fortunately, buy and hold investors, including institutions, have always given top consideration to the more important matters which can contribute to making the company a tremendous success in the long run.

Naw! Tesla will be bankwupt long before they can build any cars in China! ;)
 
  • Funny
Reactions: madodel
Not that Tesla needs it sooner but the Semi is an electric vehicle....
I hope semi is included in EV now, but it's possible that it could fall under the commercial vehicle category for 2020.

Limits on foreign ownership of electric vehicle producers will be eliminated this year, the Cabinet’s planning agency said. That will be followed by a similar repeal for makers of commercial vehicles in 2020 and passenger vehicles in 2022.

We will have to wait to see how the rules will actually be implemented in China. My guess is that China will loosen the requirement on industries that they think they are already on the leading edge, so EV passenger vehicles seems to easily fit that category. It's possible that they also already have the lead in commercial EVs, and may also open it now, or they could push that to 2020 to give time for their domestic companies to get a head start.
 
I'm curious why wouldn't Tesla do a stock split, wouldn't that have a short squeeze effect?
No it wouldn't. Big money tends to ignore stock splits, viewing them, with some justification as a gimmick.

That is the very last thing that Tesla needs now. 100% of their time and psychic energy needs to go toward cranking out quality Model 3s.

If they do, the stock will take care if itself. If they cannot, no amount of financial manipulation will save them
 
With the China news I think the prospect of Tesla raising money might be much higher. I think they’ll introduce model Y during November as stated by Elon during the previous CC. Give the market some time to digest this, I think institutions will stumble upon each other to give Tesla the cash it needs to open up in China. The media attention will be huge as well as the profits.

China is basically sending Tesla its most endearing and sincere invitation yet. Barring ICE the same treatment might be extended to 5 years once we reach the 3 year mark...
 
With the China news I think the prospect of Tesla raising money might be much higher. I think they’ll introduce model Y during November as stated by Elon during the previous CC. Give the market some time to digest this, I think institutions will stumble upon each other to give Tesla the cash it needs to open up in China. The media attention will be huge as well as the profits.

China is basically sending Tesla its most endearing and sincere invitation yet. Barring ICE the same treatment might be extended to 5 years once we reach the 3 year mark...

Indeed, this latest policy could give Tesla a huge lead in China. Yes, it's as though it is a targeted invitation to Tesla, since other American automakers already have Chinese joint venture contracts that would be hard to undo. The Chinese want electric cars, and Tesla has the brand cachet.

Elon had merely said that a capital raise is not necessary this year, but that did not eliminate the possibility if an opportunity presented itself. It's been presented. Tesla really should start building a factory in China ASAP, and consider raising capital for it. That could place them well ahead of the competition, and may inhibit others from entering.
 
Indeed, this latest policy could give Tesla a huge lead in China. Yes, it's as though it is a targeted invitation to Tesla, since other American automakers already have Chinese joint venture contracts that would be hard to undo. The Chinese want electric cars, and Tesla has the brand cachet.

Elon had merely said that a capital raise is not necessary this year, but that did not eliminate the possibility if an opportunity presented itself. It's been presented. Tesla really should start building a factory in China ASAP, and consider raising capital for it. That could place them well ahead of the competition, and may inhibit others from entering.

At the rate that China is opening up, I am making my prediction that Model S and X will enjoy lower tariffs very soon.
 
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