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ev-enthusiast
Active Member
FredTMC
Model S VIN #4925
I heard that rumor over the last month or so. No idea here...
certainly seems that SCTY spike and TSLA spike are related to this rumor
dreamingof3
Member
I agree with the author Evan. The minute Left said demand issues I almost fell over. We are dealing with a vehicle that is going to have a huge waiting list through 2016. The front running thing is certainly true-but how can we take Left's entry point at face value? How do we know left wasn't shorting in Jan and Feb and finally "announced" his short in an effort to cover. I don't buy that Left entered at 195 but that is my opinion.
Krugerrand
Meow
Coming via TD Ameritrade right now.
I found Elon's SCTY share purchases 'interesting'. I've found his TSLA 'interesting' as well and in context with some other things he's said over the last year or two. And yes, TSLA and SCTY are looking like twins right now.
dreamingof3
Member
In retrospect SCTY at 16 looks like a steal. We may be comparing this to Tesla touching 145 pre-earnings.
Well duh (and if it can be proven that they banked their $6% the day after, Citron should go before the SEC).
dreamingof3
Member
Can someone clarify the SCTY elon rumors? He is already a large shareholder, so when they say buying SCTY they mean ????
mmd
Active Member
I don't follow SCTY, but just checked the news after the comments above. What is this lawsuit investors are trying to file?
SolarCity Investors Encouraged to Contact Securities Law Firm about Investigation into Allegations of Corporate Wrongdoing - Yahoo Finance
Secondly, from where will Elon get the money to buy out $2.18B of SCTY shares? If he will be selling his TSLA shares for this, then that seems to be a negative for TSLA to me.
SolarCity Investors Encouraged to Contact Securities Law Firm about Investigation into Allegations of Corporate Wrongdoing - Yahoo Finance
Secondly, from where will Elon get the money to buy out $2.18B of SCTY shares? If he will be selling his TSLA shares for this, then that seems to be a negative for TSLA to me.
FredTMC
Model S VIN #4925
High percentage short interest + high share borrowing cost + intelligent long holders = short squeeze? They can't trigger panic selling, and can't get more people to short because of borrowing cost? I put in very high limit sell orders on my TSLA and SCTY shares this morning. Don't know if this has anything to do with the rally. 
larmor
Active Member
Package MX/MS with solar cells and possible home battery-- would be a great product package for European sales-- are their EV and solar incentives like US, only one per year, or both can be availed simultaneously. This would be compelling comparison to cayenne GTS for price point (not cayenne 6 cylinder).
EU readers, what are breakdowns for incentives by country?
Out of curiosity, what happens to me if this happened and I have a cost basis near 40/share?
Am I compelled to sell, do I retain a tiny amount if equity in the privately held company, or would he have to buy mine back at a price I agree to?
Doubt this is really what's gonna happen, but curious because I don't know how it would work.
Pretty annoyed at myself for forgetting to submit my cash transfer a few days ago with the intent of buying enough scty to push my cost basis to 25.
dreamingof3
Member
So why would Elon want to overpay for SCTY then?
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It's on if we break 195!!!!!!!!:biggrin:
FredTMC
Model S VIN #4925
Just saying - no idea if such a rumor is true - but it would make a good deal of sense. Unlike TSLA, the public stock market is not the ideal funding mechanism for the expansion of Solar City because Solar City can expand to the max effectively forever thereby having no realistic time horizon to start paying dividends - yet it can pay interest on solar-backed bonds immediately and effectively forever - as well as a giant salary to a private owner.
It is also the case that SCTY headline GAAP numbers are completely messed up by GAAP lease accounting. Unlike TSLA, SCTY has failed to impress on investors the immense skew between GAAP and business reality (Cash Flows). It is much easier to explain to investors that the three-year residual value of a car is doing fine (and therefore RVG liability stated by GAAP is overstating losses) than the fact that SCTY is front-end loading cash flows from 20-year real leases on the back of real corporate debt liabilities that sits on Solar City's own books.
So basically if Elon wanted to privatize Solar City at a bargain, 2016 would be a good time to do it and it would be a serious and exponentially growing cash cow for him, especially considering this is the eve of Solar City opening a giant panel factory coincident with Tesla's battery storage for solar crossing the tipping point into impossible for fossils to compete territory.
dreamingof3
Member
You would be compelled to sell. There would be no public shareholders left. Of course the majority of the existing shareholders would need to agree on the price before it happens. Similar to an all cash buyout from another company.
Ah, shucks. So in this case a good thing happens for the company but I end up booking a pretty large loss.
Le sigh. Still think it won't be happening though.
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