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TSLA Market Action: 2018 Investor Roundtable

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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...

You still can’t buy shares from longs while having material inside knowledge that would affect the share price, because the longs that sold the shares are affected.

But it sounds like a rumor at this point, and he did warn the shorts they were about to get burned...
 
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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?
Can Elon sell his shares personally? This could be an explanation as to why he is buying more, instead of converting.
 
3) Also seems to violate Elon's insistence that Tesla would not raise capital. This seems almost exactly like a capital raise?

It's not a capital raise when the shares are bought on the open market from a shareholder, rather than by buying newly created shares from the company treasury. Today in the open market Elon paid money to some shareholders to buy their shares that they had been holding. The money did not go into the company treasury. Hence no capital raise for the company. Money from the sale of shares only goes into the company treasury in the cases of the original private shareholders, an initial public offering or subsequent offerings.

It's great seeing Elon put his money where his mouth (tweets) is. I strongly suspect he will not allow his new shares to be lent to short sellers. I don't allow it for mine. It could really get interesting if he keeps this up for more than one day.
 
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It's not a capital raise when the shares are bought on the open market from a shareholder, rather than by buying newly created shares from the company treasury. Today in the open market Elon paid money to some shareholders to buy their shares that they had been holding. The money did not go into the company treasury. Hence no capital raise for the company. Money from the sale of shares only goes into the company treasury in the cases of an initial public offering or subsequent offerings.

It's great seeing Elon put his money where his mouth (tweets) is. I strongly suspect he will not allow his new shares to be lent to short sellers. I don't allow it for mine. It could really get interesting if he keeps this up for more than one day.

But how does that tie into funding a factory?
 
Here is where I see profitability coming from in Q3 and Q4. It also explains Elon's short squeeze.

Tesla knows that the end of the $7500 federal tax credit will help it sell high-spec cars. So as soon as they get up to 5k/week they will introduce AWD (possibly P) but NOT the base battery. This will drive up the ASP even higher right as demand peaks and production peaks. This combination in Q3 and Q4 will lead to profitability in those two final full credit quarters. That in combination with the typical Q4 push because the tax credit is quickly realized, Q4 should be massive. This is where the short squeeze of the century will play out.

Q1 2019 will usher in the 35k base model with $3750 credit, but will also have the SP suffer because of the loss of the credit. However, since the line should be smoothly running, Tesla should be in a position to be profitable on the base model, but not until Q1 2019. Q1 2019 might not be profitable however because most of those who want the high-spec model 3's on the list will have them.... of course word of mouth might change that, but I would expect a drop in gross margin.

Bring on the profits.
-Jim
 
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?

Elon on the recent conference call:

And then we also expect to announce the location of the Tesla Gigafactory in China soon.

We're very appreciative of the fact that the Government of China has announced that they will be allowing full ownership of manufacturing facilities in China. I would just like to express an order of appreciation to the Chinese Government in that regard.

EDIT: I removed one line that was actually said by reporter Phil LeBeau. Thanks to Familial Rhino for the correction.
 
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Why translate ?

Read the important part:

"Our production plan for Model 3 is based on many key assumptions, including:

  • that we will be able to complete ramping high volume production of Model 3 at the Tesla Factory without exceeding our projected costs and on our projected timeline;
  • that we will be able to continue to expand Gigafactory 1 in a timely manner to produce high volumes of quality lithium-ion cells to be integrated into battery modules and finished battery packs and drive unit components for Model 3, all at costs that allow us to sell Model 3 at our target gross margins;
  • that the equipment and processes which we have selected for Model 3 production will be able to accurately manufacture high volumes of Model 3 vehicles within specified design tolerances and with high quality;
  • that we will be able to maintain suppliers for the necessary components on terms and conditions that are acceptable to us and th at we will be able to obtain high-quality components on a timely basis and in the necessary quantities to support high-volume production; and
  • that we will be able to attract, recruit, hire, train and retain skilled employees to operate our planned high volume production facilities to support Model 3, including at the Tesla Factory and Gigafactory 1.
If one or more of the foregoing assumptions turns out to be incorrect, our ability to meet our Model 3 projections on time and at volumes and prices that are profitable, demand for and deliveries of Model 3, as well as our business, prospects, operating results and financial condition, may be materially and adversely impacted."

Have you ever read a discussion on risk factors from a public company before?
 
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?

You should read up on insider trading laws
 
So the Gigafactory is there, but the second manufacturing plant will be in China as well.

This one wasn't said by Elon, but by Phil LeBeau when trying to confirm he got it right. Elon responded next, by clarifying that future Gigafactories will combine battery production with auto manufacturing and assembly.
 
I checked in with a Tesla employee today regarding shutting out contractors. The response I got was the it was “a good thing” because Tesla is better focused when things are done “in-house.” It’s an absolute positive because Tesla has better workers and builds stronger teams in-house. Whereas contractors really have no buy-in, they’re only bodies... contractors seldom work well with other groups or units, whereas Tesla manufacture/installation works well in groups.
 
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