TSLA Market Action: 2018 Investor Roundtable

[Krugerrand]

Breaking: Oct 17, Tesla (Shanghai) Co., Ltd. successfully acquired 864885 square meters (a total of 1297.32 acres) of industrial land in Q01-05, Shanghai Lingang Equipment Industrial Zone, and officially with Shanghai Planning and Land Resources Administration. $TSLA #TeslaChina

vincent on Twitter

My math says 214 acres.

 

[Boomer19]

How Tesla will produce 10k/w on 210 acres is another question...

vertical integration.

 

[Krugerrand]

“Tesla expects the factory to produce its first cars in three years, according to an earnings release in August”

CNBC conveniently forgets about the Oct 2nd Tesla delivery update which said that shanghai factory plans have been accelerated.

That’s okay, let them forget the updated plans. Besides is a time table really necessary for a Potemkin Village?

 

[MP3Mike]

I'm pretty certain that when AutoPilot is active (i.e. when the car is driven) the chips typically just clock up to the maximum frequency. It's all liquid cooled, so there should be no thermal throttling.

Only the Model 3 has a liquid cooled AP computer. Model S&X use an air-cooled design.

 

[JRP3]

I wouldn't make much of anything of the 20$ million in stock purchased by Musk. It's pretty clearly that the company wants him to pay both halves of the SEC settlement and they don't want it to impact their cash on hand at all

Correction: Elon wanted to pay the entire fine himself, he didn't want the company to be fined at all.

 

[RoadsterPlease]

if nasdaq goes back to yesterdays trendline we could see 295 today.
However I will be fine with 280 till earnings.

 

[KarenRei]

I'm just going to start marking any "neural net computer technical details" comments in this thread as "disagree" until the posters get the picture...

 

[Artful Dodger]

My math says 214 acres.

Yeah, he meant "mu" not acres. Mu is a Chinese unit for area.

86.5ha = 1297.5 mu

https://www.unitjuggler.com/convert-area-from-ha-to-mu.html?val=86.5

 

[Ulmo]

Tesla buys new plot for its first China factoryView attachment 344572

Does anybody have coordinates for this plot? I'd like to follow it from space.

Edit: So far, I found this: Gigafactory 3 developments

The location doesn't make much sense for general public that does not have planning maps.

But the picture in one of the document here:
上海市规划和国土资源管理局
View attachment 343398
matches this plot:
View attachment 343399
which is here:
View attachment 343400
One thing we can confirm is:
This is not in the "free trade zone", so there will not be tariff for cars produced here.

That's approximately here:
30°52'17.0"N 121°46'00.0"E
Google Maps

Does anybody know good satellite image websites which show this area?

 

[ValueAnalyst]

Correction: Elon wanted to pay the entire fine himself, he didn't want the company to be fined at all.

In that case, why is Tesla issuing shares to Elon, which dilutes existing shareholders, instead of fining him for the second $20 million?

With this arrangement, Tesla will show $20m higher than otherwise SG&A and higher share count, both of which hurt investors... makes no sense.

 

[Wooloomooloo]

For Musk $20M is pretty small change (although, he's apparently not very liquid so it's something)

Well he's borrowing against his existing holding to make this purchase (as he did with other purchases), but against his assets and net worth, it's chump change.

 

[Krugerrand]

846,885 square meters is 209 acres. Conversion listed is two square miles...
(It's numbers, with commas, thus market action.)

864,855 not 846,855

 

[printf42]

Does anybody have coordinates for this plot? I'd like to follow it from space.

 

[humbaba]

In that case, why is Tesla issuing shares to Elon, which dilutes existing shareholders, instead of fining him for the second $20 million?

With this arrangement, Tesla will show $20m higher than otherwise SG&A and higher share count, both of which hurt investors... makes no sense.

You thought he should buy it on the open market? That would be inviting the SEC to re-investigate for stock manipulation. Its not like they need the commission of a crime, just something that spun the right way almost looks off.

[edited to add: in essence, this is a money raise and very vanilla. The other would "look" like an attempt at insider trading since $TSLA is currently undervalued.]

 

[Fact Checking]

In that case, why is Tesla issuing shares to Elon, which dilutes existing shareholders, instead of fining him for the second $20 million?

With this arrangement, Tesla will show $20m higher than otherwise SG&A and higher share count, both of which hurt investors... makes no sense.

No, there should be no change overall: there's the -$20m fine, but also +$20m investment income.

Also, the dilution by issuing ~70,000 shares is infinitesimal: quarterly employee stock compensation alone is an order of magnitude higher.

 

[ValueAnalyst]

EM's purchase will not affect share price. He is buying newly issued shares directly.

It reduces the per-share value of future cash flows, ceteris paribus.

No, there should be no change overall: there's the -$20m fine, but also +$20m investment income.

Also, the dilution by issuing ~70,000 shares is infinitesimal: quarterly employee stock compensation alone is an order of magnitude higher.

This isn't investment income; it's pure dilution for existing shareholders that value the stock at more than current price: i.e. all investors.

It's clear to me at this point that no one stands up to Elon at Tesla, and this, in my opinion, is by far the most significant risk to investors.

 

[j6Lpi429@3j]

I'm just going to start marking any "neural net computer technical details" comments in this thread as "disagree" until the posters get the picture...

Personally I am totally fascinated by the topic, but agree its hardly 'market action'.

 

[Boomer19]

In that case, why is Tesla issuing shares to Elon, which dilutes existing shareholders, instead of fining him for the second $20 million?

With this arrangement, Tesla will show $20m higher than otherwise SG&A and higher share count, both of which hurt investors... makes no sense.

...because he’s going to use his gains from these transactions to settle the class action BS...whenever that ends.

bloomberg estimates that he will settle for 5-10% of the alleged losses (claims are in the 100s mm)

——
Tesla Won't Defeat Investor Fraud Suits Over Going-Private Tweet
2018-10-17 12:00:19.906 GMT

Tesla is unlikely to defeat lawsuits alleging private securities fraud in connection with CEO Elon Musk's tweets about taking Tesla private. Tesla's top-end exposure could be hundreds of millions of dollars, according to the complaints. Settlement value could be closer to 5-10% of alleged losses. Tesla will likely settle the cases.
——

i thought the claims were against elon not tesla, but what do i know. bloomberg also claims that the ‘investors’ filing suit are in favor at this point.

TINSTAAFL, unless perhaps, you’re elon.

 

[humbaba]

Now that short term longs have taken profit, it looks like shorts want to push down ........ wait, that's macros. Macros are down much more than TSLA; TSLA performing well.

...and $TSLA continues following the macro down. Oh well.

 

[Remus]

Headline Shortsville Times

Elon to give Tesla 20 MILLION to save firm.

And that is exactly what the shorts are screaming now.