ValueAnalyst
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Is this different from any large call option underwriting risk for a market maker?
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Is this different from any large call option underwriting risk for a market maker?
News of the Boring Company Chicago deal was just covered by the AP. I see this as a positive for the stock tomorrow. I can imagine Jonas asking Elon about future demand from Boring Company as a revenue generator for Tesla, next conference call.
As an aside, I am getting a better picture now of why Elon doesn’t like moats. I mean, duh, He is literally drilling tunnels to get around.
Edit: imagine if Boring Company agrees to a 10 figure contract with Tesla to manufacture pods for use in LA Chicago and the East Coast. And we all know Elon has no problem raising funds for Boring Company, he raised 8 figures selling toys lol. Elon is as good a comedian as he is an innovator.
As an aside, I am getting a better picture now of why Elon doesn’t like moats. I mean, duh, He is literally drilling tunnels to get around.
Edit: imagine if Boring Company agrees to a 10 figure contract with Tesla to manufacture pods for use in LA Chicago and the East Coast. And we all know Elon has no problem raising funds for Boring Company, he raised 8 figures selling toys lol. Elon is as good a comedian as he is an innovator.
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Boring: What if he accidentally discovers a pool of oil? (Not an underground storage.)
Private: This whole discussion bothers me. I want the stock to remain in my hands as long as possible.
Private: This whole discussion bothers me. I want the stock to remain in my hands as long as possible.
Words of HABIT
Active Member
Really? The Real News has been fast and furious. Not everyone responds within the heartbeat of news being issued. Real news is taking time to settle it and as investors digest the Real News for a change rather than the bombardment of FUD the last several months, the outlook on Tesla is slowly changing and the stock price is rising.
Recent Real News:
- Chicago Boring Deal (I know, not Tesla) adds credibility to Elon and, yes to Tesla, essentially a buy-in by big Government (I counted 50 sixteen passenger vehicles in the promo material artist rendering. Who do you think TBC will go to to manufacture these, VW?)
- 9% layoff of Staff. Needed to assure profitability.
- Quarterly meeting advised China Gigafactory was imminent.
- Quarterly meeting advising Tesla is still on target for 5,000M3/week.
Need I go on? Because I can.
This doesn't sound very likely or else Elon would be in trouble for insider trading rules violation as he bought the share with material non public information.
Wait, when was the boring company deal announced?
Words of HABIT
Active Member
A lot of TMC posters here are getting smug with the recent TSLA gains. This should not give us bragging rights. Let's keep our own $ entry points to ourselves. As with Elon's recent investment, it is all relative to the big picture, and without knowing someone's total wealth, their TSLA position tells very little.
I've said it many times before, as a daily researcher of Tesla for 5 1/2 years and now a proud owner, IMHO Tesla will continue to exceed all my expectations, however it does not come without risk, and TSLA will always be highly volatile. IMHO Elon will hit all the triggers in securing his payday of X10 times the current SP, however the vast majority of of TSLA shareholders (those that jump in and out of this stock thinking they can time the market) will lose money on TSLA during the next ten years. Cheers to the longs!
EDIT: I wrote this to myself. Daniel, if you ever think about selling even a single TSLA share, read this first!
I've said it many times before, as a daily researcher of Tesla for 5 1/2 years and now a proud owner, IMHO Tesla will continue to exceed all my expectations, however it does not come without risk, and TSLA will always be highly volatile. IMHO Elon will hit all the triggers in securing his payday of X10 times the current SP, however the vast majority of of TSLA shareholders (those that jump in and out of this stock thinking they can time the market) will lose money on TSLA during the next ten years. Cheers to the longs!
EDIT: I wrote this to myself. Daniel, if you ever think about selling even a single TSLA share, read this first!
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trailhound
Member
17.5M purchase
something is up..….IMO
Krugerrand
Meow
Don’t you have one foot in the grave already? Why are the stocks even in your name, they should be in your wife’s name. She’s about to have a gazillion dollars worth of student debt.
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Not a purchase. Just an execution of options.
Consider withdrawing your comment
Krugerrand
Meow
When is Tesla going to have time for that?! My bet is on SpaceX doing at least this first project.
Krugerrand
Meow
do you understand this:
(1) This stock option award is a triennial equity award granted pursuant to the Company's 2010 Equity Incentive Plan and Outside Director Compensation Policy. 1/36th of the shares granted shall become vested and exercisable as of each monthly anniversary beginning on June 12, 2018, such that all shares subject to the Option shall be fully vested and exercisable by June 12, 2021.
does this mean he gets 655 Million in Tesla shares as of the current marketcap? Is it possible that other Directors may get the same?
Edit: Found some old sec documents from 2010 but can not find the right details. Would be helpful if someone knows where exactly those details are. (if there are publicly available)
Not even. Just an assignment of options to buy at $342.
No, at least not as I understand it. Tesla bought a hedge contract from someone that is pretty much equivalent to having bought calls at a particular strike. I assume the funny non-round price quoted above is actually the strike plus time value, just as if they were bought on the open market. This contract ... damn, I can't find the details that someone posted just a day or two ago ... anyway, for $359.xx they can get shares from someone, effectively acting as the market maker, and give them to bondholders in lieu of paying back the debt. So whoever that counterparty is, the higher the stock price, the more they are losing on the hedge. The question left in my mind is, does the counterparty already have shares to deliver? Or is part of the hedge deal that Tesla issues new stock and take the current market value in payment? The former could remove supply of shares, tightening any short squeeze. The latter would basically turn the capital from the bonds into an investment, which would be dilutive in the sense that there would be more shares on the market, but actually at a significant profit to Tesla as the price would be higher than paying out the bonds (and any future interest coupons not yet paid), so it would actually increase the cash value of Tesla more than the dilution.
Oh, and for the benefit of the shorts who insist that Tesla needs to raise more capital, this is a way to do it without having to go to the market.
Edit: @bhzmark also comments on this point in another thread: q2-q4 2018 financial projections
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Been there, done that. I've always been straddling the grave.
Except for half to one son of 20%, she inherits the rest or already owns half of the bulk of it in a joint account and gets the rest at a new cost rate! Other assets in a trust to her or, the car, jointly registered. Unless Trump gets us into a nuclear war or all out trade war, and even then Bidu and TSLA, constituting a whopping 62% of our assets, might be sufficient hedge and she doesn't have to work. Every time I pay a bill, she now learns how to do it, and other safeguards in place. (Her mother in Thailand frequently prays for and gives offering to the stock market's rise.) Do you smell the incense?
I think you do.Also, as a hedge, she nags me about diet and exercise so much that I often introduce her as my significant mother. Today, for example, she ordered me (lied about the tone) downstairs to put her wash in the dryer, just so I'd go up and down the stairs another time.
I suffer great elder abuse in this paradise time of my life.
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