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

[Boomer19]

Certain large Cdn Brokers had all dividend shares fully in place since Saturday a.m. Aug 29, 2020

this part is technically not correct;

while individual holders may have received the credit of shares in their accounts from their broker, no broker anywhere has received the split shares yet from the issuer - it hasn’t allocated

the issuer delivers the shares to dtcc, and dtcc credits its participants (banks, brokers, etc etc)
as of now, the anticipated allocation date is tomorrow.

 

[Singuy]

So Apple is also rising like crazy, adding more market cap than tesla daily. Are there any parallel conclusions to be drawn here between the two? Was their split similar to Tesla's ? Were there a bunch of naked shorting over there and are people also having a hard time getting their shares?

 

[WarpedOne]

Yes

 

[JBRR]

EDGAR Filing Documents for 0001193125-20-236678

*Tesla to Sell Up to $5 Billion in Stock >TSLA

 

[MABMAB]

Not for sure but think 453.95 was high in Frankfurt. $544.12

 

[mongo]

You've got a major misunderstanding about the process.

Frank, I've lost a lot of respect for you for pushing the theory that the brokerage houses have suddenly become so grossly incompetent they can't get the shares to their rightful owners even when given 10 days to do so and with no evidence to back up your theory (other than taking them at their word). Do you really think they would tell you the truth if their behavior was fraudulent? It's a pretty wild claim that they somehow managed to properly deliver the shares for so for many decades (and in only 7 days in almost all cases) and now they can't seem to get-er-done. Maybe COVID-19 has addled their brains, LOL!

There is a good reason for the 7 days between the split and the deadline for the delivery of shares.

Make no mistake, Tesla issued 4 shares for every registered share under each brokers purview and the brokers had 9 days to deliver and yet some of them couldn't.

You are conflating the date of record and the date of award. Aug 21 was the date which determined how the shares which were issued post close on Aug 28th were distributed.
No one had the new shares prior to the non-market Aug 28-31 window.

Tesla Announces a Five-for-One Stock Split | Tesla, Inc.

PALO ALTO, Calif., Aug. 11, 2020 (GLOBE NEWSWIRE) -- Tesla, Inc. (“Tesla”) announced today that the Board of Directors has approved and declared a five-for-one split of Tesla’s common stock in the form of a stock dividend to make stock ownership more accessible to employees and investors. Each stockholder of record on August 21, 2020 will receive a dividend of four additional shares of common stock for each then-held share, to be distributed after close of trading on August 28, 2020. Trading will begin on a stock split-adjusted basis on August 31, 2020.

Related:
I'm only seeing reports regarding non-US brokerages. Those transfers have additional hoops to jump through.

 

[MABMAB]

EDGAR Filing Documents for 0001193125-20-236678

*Tesla to Sell Up to $5 Billion in Stock >TSLA

Well that blocked the wind from the sails a bit.

 

[Robocop]

Well that blocked the wind from the sails a bit.

That does this mean exactly?

 

[JBRR]

 

[MABMAB]

So how many Billions in stock need to be purchased for SP500 inclusion?
What percent of that does this 5B meet?

 

[JBRR]

I have an inkling this should make S&P inclusion soon, likely.

 

[MABMAB]

OK, found my own answer, from a while ago, article says 30B needed to be purchased, making this equity raise a small drop in the bucket. Likely larger amount now.

 

[Singuy]

Sweet the capital raise a lot of people were hoping for!

 

[Robocop]

So are we looking at dilution? Like new shares comprise the $5B? Trying to determine what that means for today's moves.

 

[ByeByeJohnny]

EDGAR Filing Documents for 0001193125-20-236678

*Tesla to Sell Up to $5 Billion in Stock >TSLA

$20 drop in premarket exactly when you posted this. Is this really seen as a negative by the market or just another fud attempt?

 

[MABMAB]

At about current prices, that is 9.6M shares

 

[OrthoSurg]

I have an inkling this should make S&P inclusion soon, likely.

Another 5B of liquidity for Tesla
Where are they gonna produce that new Gigafactory?

 

[MABMAB]

The tail (TSLAQ) is no longer wagging the dog.

 

[OrthoSurg]

$20 drop in premarket exactly when you posted this. Is this really seen as a negative by the market or just another fud attempt?

Well they probably see this as share dilution of the existing shareholders.
They don’t see what Tesla will make with that new liquidity. More than any company could ever think of doing.

 

[MABMAB]

Quote

to sell the Shares from time to time based upon Tesla’s instructions for the sales, including any price, time or size limits specified by Tesla. Under the Equity Distribution Agreement