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

[HG Wells]

I remember fusion reactors as well. They are clearly the future.

Actually, they have been around for a long time and are very easy to make.
Just take a large cloud of hydrogen and let it collapse under its own weight.
They are self starting and very efficient.

 

[jerry33]

Actually, they have been around for a long time and are very easy to make.
Just take a large cloud of hydrogen and let it collapse under its own weight.
They are self starting and very efficient.

Hard to carry in your back pocket though.

 

[wipster]

Toyota CEO Akio Toyoda is 64 years old and has no science or engineering training. His only qualification to be running Toyota seems to be that he's the grandson of founder Kiichiro Toyoda. This is not a recipe for success for a company in a rapidly evolving industry.

Sounds like Henry Ford the 2nd as illustrated in Ford v Ferrari...

 

[Stone_Watcher]

Hard to carry in your back pocket though.

Because you’re supposed to use it instead of a heart like Iron Man

 

[lklundin]

Suppose a Tesla bull has sold a (covered) DOTM call with expiry _after_ tomorrow.

If tomorrow after hours the holder of that call option is desperate to get their hands on some Tesla shares, would they have the right to exercise their call option (which at that time could be not-so-DOTM)?

 

[woodisgood]

650 . . . 650 . . .

Comon, everyone start chanting!

Mind-blowing that it was barely a year ago (not sure if you were a regular yet) that we were chanting for tree-fiddy...not half of current price but around a tenth.

 

[corduroy]

IV creeping back up.

 

[CyberDutchie]

I wonder if T. Rowe Price will get back into TSLA. Their funds are not tracking S&P 500, but benchmarking against it, with YTD of 30% almost double the S&P 500 performance YTD. They were in the news last year, Q1, for dumping most of their stake (not a good move obviously):

T. Rowe Price Associates Inc. sold roughly 81% of its shares of Tesla Inc. over the first three months of the year, marking a sharp retreat for a firm that for years had been one of the electric-car maker’s biggest investors.

The fund manager held 1.7 million Tesla shares as of March 31, 2019, down from 8.9 million shares at the end of 2018, according to a Wednesday filing with the Securities and Exchange Commission.

T. Rowe TROW, 0.64% declined to comment on the move, while Tesla didn’t immediately respond to a request for comment.

The move by T. Rowe comes as Tesla shares TSLA, +4.03% have logged a 30% loss for the year through Wednesday, compared with the S&P 500’s SPX, 0.52% 14% gain.

 

[ABCTG]

Probably too late now, wonder if anyone contacted Vanguard about how they will be handling the TSLA inclusion?

Vanguard S&P 500 ETF is an exchange-traded share class of Vanguard 500 Index Fund. Using full replication, the portfolio holds all stocks in the same capitalization weighting as the index. The experience and stability of Vanguard’s Equity Index Group have permitted continuous refinement of techniques for reducing tracking error. The group uses proprietary software to implement trading decisions that accommodate cash flow and maintain close correlation with index characteristics. Vanguard’s refined indexing process, combined with low management fees and efficient trading, has provided tight tracking, net of expenses.

Vanguard ETF Profile | Vanguard

 

[Tes La Ferrari]

Dreaming of a pre-inclusion big Buffet buy leak.

A bull can dream...

 

[Johan]

IV creeping back up.

Yeah noticed this too. Even though we've been floating around in the $644-$649 range for the last few hours my relatively short term OTM calls have been creeping up in value.

 

[BobbyKings]

Next target should be 710, being a 69% increase of something.

 

[2daMoon]

Toyota President Akio Toyoda said Japan would run out of electricity in the summer if all cars were running on electric power.

In a country such as Japan that gets most of its electricity from burning coal and natural gas, EVs don’t help the environment, Mr. Toyoda said. “The more EVs we build, the worse carbon dioxide gets,” he said.

Hilarious. So where are they going to get the hydrogen for their (basically vapourware) FCEVs? Or their amazing new solid state batteries?[/QUOTE]

I'm sure they'll "cook" some up from somewhere ....

 

[adiggs]

Suppose a Tesla bull has sold a (covered) DOTM call with expiry _after_ tomorrow.

If tomorrow after hours the holder of that call option is desperate to get their hands on some Tesla shares, would they have the right to exercise their call option (which at that time could be not-so-DOTM)?

Yes, the call owner can exercise their call at any time. If/when they do, the assignment happens randomly to somebody that sold the call, which might mean you


The more deep ITM an option is, the lower the time component of the option premium, and the increasing chance of that happening.

Or of course, it would be a mechanism for a buyer that needs shares badly to acquire them as well (buy that DITM call with low time premium and exercise).


Doing that after hours gets more tricky. I personally haven't had that happen, but I've seen somebody post about that happening to them. I think the best we came up with is this can happen for roughly the 30 minutes after close. You or I can pull this off by calling our broker and telling them we want to exercise our option, even though it is OTM (or in this case, has time value rather than just expired).

Call your broker to ask how this would work for you.

 

[wipster]

I think I can I think I can

 

[OrthoSurg]

The index funds don’t care so much about what price they have to buy. What they care about is what’s gonna happen after inclusion, in particular the last days of December trading. Their business depends on S&P 500 delivering a solid annual return (10-15% or better), that’s the market appeal of these funds.

So, in my opinion, this means if the index funds have any control over what happens at all, they will focus their efforts on preventing a huge sell-off after inclusion. That’s why I’m not worried about it.

I like this argument

Done:

Tesla's S&P 500 Inclusion Part 2: Predicting the transformation of the TSLA float

I will have to sit down with a bottle of Teslaquila and absorb your doctorate thesis

 

[Nocturnal]

 

[Bet TSLA]

Also before announcement in my case- as we got north of 645 today I sold the (relatively short term) 390 calls I'd bought back in late Sept when SP dropped to ~380....

Yeah there might be a bit more upside tomorrow (or might not), but most mistakes I've ever made with purchased options have been holding em too long, and I was happy enough a bit north of 5x returns, as that's quite a bit more than I expected out of them when purchased.

I guess you call that wild-ass crazy conservatism.

 

[Cherry Wine]

Still a ton of shares available at <= $650 (185k).

EDIT 12:42 PM PT: Big drop to 145k.

EDIT 12:43 PM PT: 120k.

EDIT 12:44 PM PT: Aaaaand it's gone.

 

[UkNorthampton]

I think you’re off the mark with solid state batteries.. they are a complete game changer and a vast improvement over lithium ion in every way. Of course there are challenges.. but it looks like they will become reality in a 2-3 yr time frame. Specifically these batteries have these advantages over lithium:

- Charge twice as fast meaning less waiting on long trips..
- 2-10 times the energy density.. This means they’ll enable much longer range for an equivalent battery size (Let that sink in.. this is huge)
- Better cold weather performance simplifying battery thermal management
- Highly reduced degradation.. meaning a much longer battery life
- Safer since they don’t over heat and combust..

Tesla had dumped billions into lithium battery production.. but they need a story on solid state.. This is clearly the future for EV batteries..

Statement without evidence.