What happens to my SolarCity Stock?

[swaltner]

Has anyone received cash in lieu of partial shares? My SCTY (and TSLA) shares were held in an IRA with Vanguard. They did the conversion of SCTY -> TSLA on Tuesday, and as expected did not distribute fractional shares. However, I didn't receive cash for the partial shares as was suggested up thread. In my case, the partial share was worth about $175. I sent an e-mail to Vanguard this morning asking what's up, but was wondering if one person could confirm they received cash in lieu of partial shares in this conversion and what brokerage your shares are held at.

 

[MP3Mike]

Has anyone received cash in lieu of partial shares?

I received cash for my partial share on my shares that are held at Pershing. For my shares held at Capital One Investing they converted complete with the fractional shares, which still show in my account. But given they "specialize" in fractional shares they may be treating this differently than normal brokerages. (They may have bought enough shares to distribute the fractional shares to their customers.)

 

[neroden]

I received cash for my partial share on my shares that are held at Pershing. For my shares held at Capital One Investing they converted complete with the fractional shares, which still show in my account. But given they "specialize" in fractional shares they may be treating this differently than normal brokerages. (They may have bought enough shares to distribute the fractional shares to their customers.)

Interesting. There are no *actual* fractional shares (Tesla will not issue them), but if you have 1/4 of a share and another Capitol One customer has 3/4 of a share, Capitol One could buy a whole share and credit each of you with the fraction. *If you try to take the shares out of the Capitol One account* you will not get the fractional shares, they'll be sold.

 

[neroden]

Has anyone received cash in lieu of partial shares? My SCTY (and TSLA) shares were held in an IRA with Vanguard. They did the conversion of SCTY -> TSLA on Tuesday, and as expected did not distribute fractional shares. However, I didn't receive cash for the partial shares as was suggested up thread. In my case, the partial share was worth about $175. I sent an e-mail to Vanguard this morning asking what's up, but was wondering if one person could confirm they received cash in lieu of partial shares in this conversion and what brokerage your shares are held at.

I've found there's often a delay of a couple of days before you get "cash in lieu", as it's called. You should definitely ask them what's going on, bu it's most likely just a delay.

 

[swaltner]

I've found there's often a delay of a couple of days before you get "cash in lieu", as it's called. You should definitely ask them what's going on, bu it's most likely just a delay.

Yep, it was just a little bit of a delay. For my account at Vanguard, the conversion from SCTY to TSLA happened on Nov 22 and then I received the cash in lieu of the partial share yesterday on Nov 28. I guess it makes sense when you think about it like they immediately sold the partial share on Tuesday and then waited the standard 3 business days to settle the transaction before depositing the cash.

 

[jcee]

For anyone on E*Trade that had SCTY convert to TSLA: They did not re-calculate the cost basis on the converted shares. I gave them a couple days thinking they would fix it but finally complained when they did not. After going back and forth with them for about 3 days I am finally being told they are doing a system-wide update tonight.

 

[ggr]

For anyone on E*Trade that had SCTY convert to TSLA: They did not re-calculate the cost basis on the converted shares. I gave them a couple days thinking they would fix it but finally complained when they did not. After going back and forth with them for about 3 days I am finally being told they are doing a system-wide update tonight.

Yes, they not only screwed up the cost basis on the new stock, but on all my old stock too. I complained and was told that it would all be fixed some time on Friday. I expect to write my next letter of complaint on Monday.

 

[austinEV]

For anyone on E*Trade that had SCTY convert to TSLA: They did not re-calculate the cost basis on the converted shares. I gave them a couple days thinking they would fix it but finally complained when they did not. After going back and forth with them for about 3 days I am finally being told they are doing a system-wide update tonight.

Showing my TSLA cost basis of $17.316... That is an after tax account so no bueno. Hopefully they fix it.

I had a few $k in an etrade account and a fidelity account. So I converted them both to just SCTY shares on a merger play. My cost basis (looks correct) at fidelity is $158. Neat to see it playing out as scripted.

 

[jcee]

Showing my TSLA cost basis of $17.316... That is an after tax account so no bueno. Hopefully they fix it.

Mine finally got fixed. And they said it was a "system wide update". So if yours is still wrong, you should contact them.

 

[ggr]

Mine finally got fixed. And they said it was a "system wide update". So if yours is still wrong, you should contact them.

Mine was still wrong, but showed as editable, so I just fixed it myself based on my own records.

 

[Baw81]

So by reading everyone's experience in this merger my one (amazing) share in SCTY is most likely going to just be paid out - yeah?

 

[neroden]

So by reading everyone's experience in this merger my one (amazing) share in SCTY is most likely going to just be paid out - yeah?

Yes, you'll get cash.

 

[ggr]

Heads-up to any ETrade customers who owned TSLA and SCTY stock at the merger. (Maybe other brokers too.) Check the cost basis on your old TSLA stock! At first, they stuffed mine up enormously. They promised to fix it, but didn't, but left them editable, so I fixed them. Today I noticed that they're all screwed up again, and now locked.

 

[gigglehertz]

I'm with CapitalOne Investing and I still have 75.14 shares. I'm planning on buying more shares 2017 1Q anyway when I finally have some extra cash. How hard is it buy .86 of a share?

 

[neroden]

Almost nobody allows fractional shares; it must be a CapitalOne thing. So talk to them.