Short-Term TSLA Price Movements - 2014

[justdoit]

I think the biggest news is the minimal dilution and no shares for shorts to cover. This will lead to another nice rally this year similar to last IMO. I think every short was praying for some shares so they can cover and now that's not coming. The move after ER seemed restrained b/c people were waiting for a possible dilution.

I think this is even bigger than anything about the giga-factory. The slides show a little more details but nothing we don't really know.

 

[FluxCap]

$265 open tomorrow is my guess, and then off to the races, in search of Adam Jonas' $320 price target.

 

[DaveT]

Looks like it's going to be Tesla's election to deliver cash or shares. And they can't be converted until after Dec 1, 2018 (for the 2019 notes) and Dec 1, 2020 (for the 2021 notes)

"Upon conversion of 2019 notes, we will deliver cash, shares of our common stock or a combination of cash and shares of our common stock, at our election, as described in this prospectus supplement. Upon conversion of 2021 notes, we will deliver cash and, if applicable, shares of our common stock (subject to our right to deliver cash in lieu of such shares of our common stock), as described in this prospectus supplement."
http://files.shareholder.com/downloads/ABEA-4CW8X0/2330621879x0xS1193125-14-69693/1318605/filing.pdf

More info:
"Upon conversion of the 2019 notes, we have the option to pay or deliver, as the case may be, cash, shares of our common stock or a combination of cash and shares of our common stock to satisfy our conversion obligation. If we elect to satisfy our conversion obligation in cash or a combination of cash and shares of our common stock, the amount of consideration that you will receive upon conversion of your notes will be determined by reference to the volume weighted average prices of our common stock for each VWAP trading day in a 20 VWAP trading day observation period. We will deliver the consideration due in respect of conversion on the third business day immediately following the relevant conversion date if we elect to deliver solely shares of our common stock or the third business day immediately following the end of the applicable observation period if we elect to pay solely cash or pay and deliver a combination of cash and shares of our common stock. Accordingly, if the price of our common stock decreases during this period, the amount and/or value of consideration you receive will be adversely affected."

 

[AlMc]

So...........Sleepy................What airline do you prefer to fly on?:biggrin:

 

[bhuwan]

So...........Sleepy................What airline do you prefer to fly on?:biggrin:

I'll start looking at prices for a private plan

 

[Lump]

Tesla warns early note conversions could have 'material adverse effect' - The Tell - MarketWatch
Tesla Motors Inc. TSLA +2.57% said in a regulatory filing Tuesday that early conversion of its convertible notes could have a “material adverse effect” on its cash flows and financial results this year.
Closing price conditions allowing the early conversion of $660 million in notes issued in May, 2013 were met during the third quarter of 2013, allowing for their conversion during the subsequent quarter, the company said.
While the stock’s price was below the conversion trigger during the fourth quarter, shares have rebounded sharply this quarter — the stock closed at $250 Tuesday – renewing the risk of early conversions.
“Upon conversion of the Notes, we will be obligated to pay cash for the principal amount of the converted Notes and we may also have to deliver shares of our common stock in respect of such converted Notes,” Tesla said in the filing.
Each $1,000 of principal is convertible into 8.0306 shares of common stock, an initial conversion price of $124.52 a share, according to the filing.
Tesla hedged its notes offering last year, and effectively increased the conversion price to $184.48 a share, the company said in the filing.
Tesla filed to issue $1.8 billion in convertible notes Tuesday, as it announced details of a $5 billion “Gigafactory” to produce batteries for its next generation of vehicles.
More from MarketWatch

 

[gnychis]

First, I'm a long term TSLA holder. This is my first time entering this thread. I'm a little bit worried that a day before Morgan Stanley announces they are the lead underwriter on the bond offering, they double their price target in Tesla. Nobody else worried about this? Seems a little sketchy to me.

Morgan Stanley Underwrites TSLA Convertible Offering Day After 100% Stock Price Upgrade | Zero Hedge

 

[Mario Kadastik]

This MS upgrade and then underwrite seems to be the main thing people talk about on Twitter at least. So this is the bit of tar in our honeypot. It does look a bit suspicious, but depends on how much AJ had access to the note deal while creating the report. I mean he did get the 2020 car number wrong in comparison to the gigafactory PDF.

 

[mershaw2001]

I was reading twitter and there was one really, really obnoxious short, with a really obnoxious name "nobullshyttrader". I got a laugh out of his post earlier today, which he followed up by 20 tweets of how he was going to cover at 192.

nobullshytrader ‏@nobullshytrader 8h @kiksbutt 2 bizzy shortin my life sayvingz on $TSLA

just for kicks, here's a few hours later.

-"KEEP BUYIN UP THOSE DIPS IDIOTS!"

And finally the realization he might be on the wrong side of things after hours:

-"wow people cant be this ****in dumb can they?"

https://twitter.com/search?q=$TSLA&src=ctag

 

[772]

Read Doug Kass and ZeroHedge tweets... that's all I have to say about that article :biggrin:

 

[Mario Kadastik]

I thanked Douglas Kass on twitter for my new juicer that I bought today to celebrate the squeeze (pun intended fully)

Twitter / toruonu: @DougKass Yes and Tesla isnt ...

 

[AlMc]

I thanked Douglas Kass on twitter for my new juicer that I bought today to celebrate the squeeze (pun intended fully)

Twitter / toruonu: @DougKass Yes and Tesla isnt ...

View attachment 44213

Now MArio....That is just not right..........................................Oh wait, YES it is!:biggrin:

 

[30seconds]

Read Doug Kass and ZeroHedge tweets... that's all I have to say about that article :biggrin:

View attachment 44212

pretty desperate if he's down to tweeting the boilerplates.

 

[Lump]

Good one :biggrin:

Doug's buddy at Zero Hedge is pulling his hair out too.

Morgan Stanley Underwrites TSLA Convertible Offering Day After 100% Stock Price Upgrade | Zero Hedge

 

[Convert2013]

JP Morgan was waiting for the formal announcement of the Gigafactory during ER to come up with their new price target, but yeah the timing of Gigafactory and price target is not a coincidence. Am sure it was planned out in advance albeit in a refined way. Welcome to Wallstreet. Anyway I'm not complaining.. Go Tesla, Go Solar.

 

[772]

pretty desperate if he's down to tweeting the boilerplates.

He's not even doing that... he's just retweeting what his "friend" read... you know, because he's still too shell-shocked to open the blog post and read it himself :scared:

 

[AlMc]

Anyone have a prediction of price tomorrow and Friday. I know some Gigafactory ('GF' according to Benz) news has already been baked into the recent price movement. So, is this continuing a hard short squeeze with 5+% price movement into the high 260s/270 or will there be enough gap filling to pressure the stock to come in at 255-260 when the dust settles and weekly options expire?

My thought is settles in mid 260s after spike to 270.

 

[palmer_md]

moved.

 

[erha]

Question about gap filling: There is a pretty huge gap between 217-230. What does this mean? Does it ever happen for stocks that such huge gaps are not filled?

 

[v12 to 12v]

We almost missed this tidbit amongst all the other news.
Short interest is out. Tesla Motors, Inc. (TSLA) Short Interest - NASDAQ.com

And there fresh new big shorts have made themselves public since that time.