Tesla, TSLA & the Investment World: the Perpetual Investors' Roundtable

[Nocturnal]

Fair points but why the capital raise while not needing it at all, for initial terms that depress the SP and declaring today they already sold all of it and collected the cash?

Tesla is a cash-generating machine already and Q3 and Q4 look fabulous.

More cash does not accelerate the mission.

Yeah I don't get it. If it's not S&P related then surely it's for something specific like a big investment or purchase. Or they figured the SP would tank after the supposed snub and wanted to grab the cash. That doesn't feel like an Elon move though.

 

[Artful Dodger]

Fair points but why the capital raise while not needing it at all, for initial terms that depress the SP and declaring today they already sold all of it and collected the cash?

Uh, Giga Texas?!

Tesla is a cash-generating machine already and Q3 and Q4 look fabulous.

More cash does not accelerate the mission.

FCF is not GAAP profits. Tesla needs to be slightly positive on GAAP going forward. That's how this game is played.

Yeah I don't get it. If it's not S&P related then surely it's for something specific like a big investment or purchase. Or they figured the SP would tank after the supposed snub and wanted to grab the cash. That doesn't feel like an Elon move though.

Lol, this isn't that hard to get. GF3/Shanghai is being build with non-recourse local debt. GF4/Berlin is being built with FCA Carbon Credits. GF5/Austin will be the biggest of all Gigafactories, but had no funding yet.

The $5 Billion Cap Raise pays for Giga Texas.

Sometimes, things are just that simple.

Cheers!

 

[H Mak]

I've placed an order for a few more if it drops to 349.99. I find it difficult to resist the dips.

 

[st_lopes]

So to recap:

1. Tesla has completed a $5B cap raise within a few days of announcing - and did not do it during the S&P inclusion buying period
2. Rumors of SoftBank pulling out of its options trades are swirling - with its shareholders apparently upset with their trading practices (I would be too... if I wanted to short term speculate I would do it with my own capital and would not expect one of my investments to be doing that with my capital)
3. NKLA and GM enter in to a partnership seeing 11% of NKLA now owned by GM in exchange for “nothing” (read as: in kind services). Maybe we see a badger roll of a production line in... 24-36 months?
4. S&P speculators “run for the door” after the Friday non-announcement
   
5. TSLA sees a $300 pre split drop in SP, largest intraday value drop (in terms of absolute value of market cap)?

And all of this before the morning bell?

Edit: Battery Day, P&D, and Q3 can’t come soon enough to cut through the gargantuan pile of non-events piling up right now.

 

[ggr]

Tesla sees a $300 pre split

Just look at percentages, ignore old stuff like "pre-split". Ancient history.

 

[Stretch2727]

Niklola will use GM/LG Batteries
Niklola will use GM Hydrotec Fuel Cell
GM will engineer and build the vehicles.
GM will invest $2B in NKLA.

Nikola will market and sell the vehicles as they have 1000's of sales locations waiting for electric/hydrogen vehicles/s. I hate to say it but this does remind me of some dot com deals where a big company takes a stake in a hot startup just to have the name association rub off onto it's stock. Not sure what GM gets here in this deal. My prediction is it will all end poorly.

 

[ggies07]

“Nikola is one of the most innovative companies in the world. General Motors is one of the top engineering and manufacturing companies in the world. You couldn’t dream of a better partnership than this,” said Nikola founder and executive chairman Trevor Milton in a statement. “By joining together, we get access to their validated parts for all of our programs, General Motors’ Ultium battery technology and a multi-billion dollar fuel cell program ready for production. Nikola immediately gets decades of supplier and manufacturing knowledge, validated and tested production-ready EV propulsion, world-class engineering and investor confidence. Most importantly, General Motors has a vested interest to see Nikola succeed. We made three promises to our stakeholders and have now fulfilled two out of three promises ahead of schedule. What an exciting announcement.”

Added GM Chairman and CEO Mary Barra, “This strategic partnership with Nikola, an industry leading disrupter, continues the broader deployment of General Motors’ all-new Ultium battery and Hydrotec fuel cell systems. “We are growing our presence in multiple high-volume EV segments while building scale to lower battery and fuel cell costs and increase profitability. In addition, applying General Motors’ electrified technology solutions to the heavy-duty class of commercial vehicles is another important step in fulfilling our vision of a zero-emissions future.”

 

[vikings123]

Doesn’t volume seem low?

Yes I noticed this too. For a drop this big the volume is not that high. Usually the 9:00-9:30 EST trading will give you a better idea of what might happen with Tesla. Volume will usually pick up around this time.

 

[cricketman]

OK so I have now finished my selling of TSLA shares!

I sold 350 @ average of $2,133 to total $751,100. That pays for my new house and the taxes and reforms. However, now that TSLA is on sale again, I can't let the opportunity pass!

I will buy back $100,000 worth between $350 and $300 ($1750 to $1500 in old money). I think there will be a hard stop at roughly half the AH high from last week of $520, so resistance between $260-$300.

I am buying in now as I still expect an S&P announcement at some point, and battery day will be ace! And anyway, the long term future is still awesome

 

[woodisgood]

Is that Trev or Mary?

 

[ggies07]

Is that Trev or Mary?

haha, both?

 

[Drax7]

There are a lot of scammers running Corporate American .
When two scammers merge , You get exponentially scammed.

 

[Artful Dodger]

For those of you unfamiliar with the background, that's one of the Corvette engineers who was recently reassigned to work on GM's EV program. How's it going so far, boys?

Cheers!

 

[MTL_HABS1909]

Niklola will use GM/LG Batteries
Niklola will use GM Hydrotec Fuel Cell
GM will engineer and build the vehicles.
GM will invest $2B in NKLA.

Nikola will market and sell the vehicles as they have 1000's of sales locations waiting for electric/hydrogen vehicles/s. I hate to say it but this does remind me of some dot com deals where a big company takes a stake in a hot startup just to have the name association rub off onto it's stock. Not sure what GM gets here in this deal. My prediction is it will all end poorly.

“Not sure what GM gets in this deal”. Are you serious? They get a whole bunch of talent in the art of creating renders

 

[JusRelax]

“Not sure what GM gets in this deal”. Are you serious? They get a whole bunch of talent in the art of creating renders

They get the best salesman the world has ever known™.

 

[Christine69420]

So to recap:

1. Tesla has completed a $5B cap raise within a few days of announcing - and did not do it during the S&P inclusion buying period
2. Rumors of SoftBank pulling out of its options trades are swirling - with its shareholders apparently upset with their trading practices (I would be too... if I wanted to short term speculate I would do it with my own capital and would not expect one of my investments to be doing that with my capital)
3. NKLA and GM enter in to a partnership seeing 11% of NKLA now owned by GM in exchange for “nothing” (read as: in kind services). Maybe we see a badger roll of a production line in... 24-36 months?
4. S&P speculators “run for the door” after the Friday non-announcement
   
5. TSLA sees a $300 pre split drop in SP, largest intraday value drop (in terms of absolute value of market cap)?

And all of this before the morning bell?

Edit: Battery Day, P&D, and Q3 can’t come soon enough to cut through the gargantuan pile of non-events piling up right now.

Yeah - and someone called Donald does not like companies doing business in China:

Trump Vows to Sharply Scale Back U.S.-China Economic Ties

President Donald Trump said he intends to curb the U.S. economic relationship with China, contrasting himself with Joe Biden by threatening to punish any American companies that create jobs overseas and to forbid those that do business in China from winning federal contracts.

In my interpretation he is basically saying that the DOW and S&P 500 are priced too high. Who does this guy think he is?

 

[juanmedina]

It is insane how the sentiment turned from extremely positive to negative all the sudden. The FUD is non stop right now. I assume there will be some downgrades soon. It is though to be a Tesla share holder.

 

[Garlands]

Any thoughts on why Model Y delivery estimates are now 10-14 weeks? RWD coming?

 

[corduroy]

Those Badger renderings remind me of the first part of the Cybertruck reveal when Elon showed how trucks have looked the same for 100 years. It looks like every other new truck, with some neon lighting added. No imagination. And I can't even imagine the added complexity of adding a hydrogen fuel cell "range extender". Good luck to GM/Nikola, but I think reality is going to come crashing down on them very quickly.

 

[Krugerrand]

More cash does not accelerate the mission.

Step away from the keyboard and give your brain a chance to catch up. Everyone.

Clearly more cash does, otherwise they would not have done the raise. Something has changed.

Very worse case scenario; they’ve taken another step toward having enough money to survive the apocalypse. As the company expands and gets bigger, they need more cash on hand to keep operations going should another black swan event hit.

One thing I’ve learned watching this company; they are always planning and preparing for several steps ahead. They were thinking SuperCharger Network before it occurred to anyone. They were thinking battery factories before anyone thought about it. They were doing recession preparedness before Covid blindsided the world. They’re changing the very way cars are made and nobody else (the exception being Monroe and us plebes here) is even acknowledging that a vehicle made of hundreds of LESS parts turns the whole industry upside down —

The list goes on.

Something has changed. Tesla never does anything without having an idea, a plan.