Don't forget that this weekend we'll almost certainly see the finished interior....after all, the rest of the design studio is opening. That could have a big impact on stock price on its own.
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Don't forget that this weekend we'll almost certainly see the finished interior....after all, the rest of the design studio is opening. That could have a big impact on stock price on its own.
Unless there's some big positive surprise over the weekend, I don't see how it will impact the stock. The original announcement that the event was happening is likely what caused that nice spike in the stock late last week since it suggested that Tesla is still on schedule with the Model S. But simply seeing new Betas and a closer to finalized interior is not news since it's expected to come from the event. It's already baked into the stock price.
Originally Posted by daniel
TESLA MOTORS: THE EVOLUTION OF GOVERNANCE FROM INCEPTION TO IPO
ANTI TAKEOVER PROTECTIONS AND OTHER RESTRICTIVE COVENANTS
The company has adopted antitakeover protections that reflect its status as a relatively young technology company. At the time of Tesla’s initial public offering, the company had several provisions in place to reduce the likelihood of a hostile takeover.2 These include a staggered board with three classes of directors, authorization to issue “blank check” preferred stock without shareholder approval, limitations on the ability of shareholders to call a special meeting, advance notice of shareholder proposals for business conducted at shareholder meetings, and power of the board to postpone or cancel previously scheduled shareholder meetings. Although such provisions might be viewed as indicative of management entrenchment, they might also serve a legitimate business purpose by granting Tesla time to commercialize its technology without the threat of early acquisition by a competitor.
Tesla has also agreed to restrictive covenants as part of its external financing agreements. For example, the company’s financing agreement with Daimler grants that company favorable terms and conditions, including right of first refusal in case of a sale of Tesla and special contracts for production of parts. In addition, Musk has agreed not to transfer any of the shares beneficially owned by him to any other automobile manufacturer or to vote in favor of a proposed acquisition by an automobile manufacturer without Daimler’s consent. A $465 million loan facility by the U.S. Department of Energy also contains restrictive covenants. The 2009 loan facility provides that Tesla will be in default if Musk and certain of his affiliates sell down their ownership position by 35 percent prior to one year after completion of the company’s new Model S (which the loan facility serves to finance). 3 Together, these covenants further reduce the likelihood of an unsolicited change in control.
Larry
In the long run I am extremely confident this company will be very successful. it would be a sad day for humanity to see it fail.
SpaceX, SolarCity and Tesla are changing the world, for real! Elon is not only dreaming, he doing it. I could not be more impressed.
As for the short term stock movements, who cares... Man will not be on Mars in a few quarter, EV will take some time to fully takeoff, short term thinking is for the greedy, not the visionary.
Couldn't agree more. I find it particularly interesting that the only thing driving this stock down is low volume. 1/10 normal volume seems to always cause Tesla to go down, but when volume is normal or when it comes in quickly, it causes a 5-7% spike. Very interesting. I really wish someone would share there thoughts on what is causing this unusual movement/ volume. I'm thinking funds accumulating around this level. Anyone have any idea?
I think the spikes on high volume *have* to be certain funds exiting short positions that they entered into in the 20s. The thing that puzzles me is that the aggregate short interest keeps increasing. I think someone earlier posited that it could be old shorts exiting and new shorts entering at these higher levels.
If you were a short it would make sense to buy at the 52-week high. I can see the point of view that the shorts are taking. We're a few months away from one of the most important moments for Tesla and the odds are stacked against them. If they fall behind schedule, if there are any small problems with the first Model S's, if the price of the model S is off, if they don't build the quantities they projected....etc. the stock could plummet. Any sort of bad press and the stock is taking a beating and the shorts are betting on it.
In the long run it's probably a bad bet but in the short term I don't think shorting the stock is a bad idea.
I don't give advice. Only opinions.Whenever I buy or sell based on what I think the market is going to do, I lose.
So I invest for the long term, mostly in mutual funds, where the buying and selling is either done by someone more savvy than I am, or based on an index. Or I buy bonds based on the research of a trusted broker, and with the intention of holding them to maturity, so it's like CDs, only without FDIC.
Buying the car but not the stock is not really irrational: The car is electric transportation, which I believe in and support, and it's a fun toy. I get to drive the car. Since the majority of cars never need repair, the car is likely to continue working fine even if the company fails. And as long as the company is in business, the car doesn't care what the stock price is. Finally, while an investor stands to benefit more from the stock, if it goes up, buying the car does more to support the company and to bring EVs to public notice.
Buying an IPO provides money to the company. Buying on the stock exchange does nothing to support the company other than the indirect effect of potentially raising the possible price of the next IPO. So a hundred grand invested in TSLA now really does nothing to further EVs, whereas buying their cars is what Tesla needs from the public if it is to be successful. They get both cash and public exposure (free advertising) when you buy their car.
But mostly, it's fun to drive. Unless you're a gambler, I don't think that stock is "fun" to own. Driving the car makes me smile. Owning risky stock gives me ulcers. As an owner of the car, I just have to hope the company stays afloat. As a stock speculator I'd have to hope the stock goes up.
I think my choice was eminently rational, given my proclivities, and the fact that at my age I am not investing for the future, merely holding investments for income.
Now, if Tesla put out a bond issue at an acceptable rate of interest, I'd trust them enough to buy a few.
I guess what I'm saying is that I trust the company, but not the vagaries of the market on an individual stock issue. Thus my 100 feel-good shares, which are just a footnote in my portfolio.
Agree with the points you made as my investment behavior is along the same lines. A minor note on the highlighted bit though... a higher stock price may help keep good-Tesla-employees-with-stock-options locked in, happy and building better EVs for the future.
Let's not confuse positions in the value chain. Car companies are not battery cell companies, nor vice versa. None of the likely suspects to build a quality car versus Tesla (e.g. Nissan, BMW, Ford) work on basic R&D in the battery space -- nor does Tesla. Any grand advances in battery technology will likely be sold to all comers.
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