Just bought yesterday, now this dilution will cause a dip, and I feel like buying again, everyday there is a reason to buy.It was the same reaction back in February. Down in premarket but closed with a 8% gain for the day.
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Just bought yesterday, now this dilution will cause a dip, and I feel like buying again, everyday there is a reason to buy.It was the same reaction back in February. Down in premarket but closed with a 8% gain for the day.
Pretty much this. Tesla doesn’t really need the cash, but it’s nice to have. Pretty obvious that the S&P knows that the index funds won’t be able to accumulate enough chairs at a stable price
This is how Tesla describes the share dividend rollout in their latest SEC filling: (Sep 01)
Inline XBRL Viewer
"Stock Dividend Adjustments
"On August 10, 2020, the board of directors of Tesla declared a five-for-one forward split of its Common Stock in the form of a stock dividend to stockholders of record on August 21, 2020 (the “Stock Dividend”). The Stock Dividend was distributed after close of trading on August 28, 2020, and trading began on a stock split-adjusted basis on August 31, 2020. As of August 28, 2020, there were approximately 933,540,135 shares of Common Stock outstanding."
Absent other sources, I'm not seeing a lot of nuance here. I have my shares, and I could sell all of them if I wanted to, as of Market Open yesterday, Aug 28th as Tesla describes.
The point is other beneficial owners DO NOT have their shares, and have only vague promises that they will receive them at an indeterminant future date.
Point to any other event in the past where this has happened during a stock dividend, then there may be useful context. Again, absent that, this is unprecented.
Indeed, and the ~10M odd shares in this Cap Raise feels more than vaguely like the number of phantom short shares that need to be located and purchased in the next 2 days.1) announce stock split
2) induce a naked short squeeze
3) announce a capital raise the day after
4) make your current shareholders Teslionaires in the process
That last is exactly why I find the "all delays caused by naked shorts" theory confusing. Whoever had a large stable of naked short shares must have known it, and had more than a week to tally up how many shares they were, uh, short, and buy them on the open market. Why wait until after the split takes effect and they can't distribute (the missing) shares properly? Wouldn't that just be drawing a big red arrow to themselves saying "hey everyone, WE have a naked short problem!" Why risk that exposure instead of just biting the bullet and buying however many shares were needed before the 31st, so everything looked smooth upon distribution and nobody investigated?
It seems like the naked short theory is alleging even greater incompetence than the "it was all caused by incompetence" theory.
But isn't this throwing a bone at them as the squeeze would have continued on as they try to locate shares from a smaller and smaller float?Indeed, and the ~10M odd shares in this Cap Raise feels more than vaguely like the number of phantom short shares that need to be located and purchased in the next 2 days.
The fact that it's being done as a 'distribution' at Market rates through the usual list of suspects is a dead giveaway. I expect all those shares are already spoken for.
Well played, Elon Zack and Hiro, well played.
But isn't this throwing a bone at them as the squeeze would have continued on as they try to locate shares from a smaller and smaller float?
Why would the board play their game? Why help them getting these shares since they were betting on a stock price drop? Why would a 1% dilution be for the current shareholder profits since Tesla will generate the cash flow anyway. I'm not sure I follow.Indeed, and the ~10M odd shares in this Cap Raise feels more than vaguely like the number of phantom short shares that need to be located and purchased in the next 2 days.
The fact that it's being done as a 'distribution' at Market rates through the usual list of suspects is a dead giveaway. I expect all those shares are already spoken for.
Well played, Elon Zack and Hiro, well played.
This is how Tesla describes the share dividend rollout in their latest SEC filling: (Sep 01)
Inline XBRL Viewer
"Stock Dividend Adjustments
"On August 10, 2020, the board of directors of Tesla declared a five-for-one forward split of its Common Stock in the form of a stock dividend to stockholders of record on August 21, 2020 (the “Stock Dividend”). The Stock Dividend was distributed after close of trading on August 28, 2020, and trading began on a stock split-adjusted basis on August 31, 2020. As of August 28, 2020, there were approximately 933,540,135 shares of Common Stock outstanding."
Absent other sources, I'm not seeing a lot of nuance here. I have my shares, and I could sell all of them if I wanted to, as of Market Open yesterday, Aug 28th as Tesla describes.
The point is other beneficial owners DO NOT have their shares, and have only vague promises that they will receive them at an indeterminant future date.
Point to any other event in the past where this has happened during a stock dividend, then there may be useful context. Again, absent that, this is unprecented.
I don't really care too much about that. But tell me, how much have you aged this month?
Be honest.
Unless you think my large Canadian Broker got special treatment from Tesla's Transfer Agent on Sat, Aug 29 when all my TSLA Dividend Shares were present and accounted for, but two other large Canadian Brokers have "still have not received their shares from the Transfer Agent"?
Have you even considered that they may be lying?
Be honest.
BTW, your innocence is adorable (but not helpful). Personally.
Word.
I'd like to add to that the majority of the names to act as sellers reads like a who's-who list of TSLA short sellers. There is a possibility that they still need help producing the shares for dividend delivery. This might be the final destination of some or many of those shares. JMO.- Probably needed to make S&P inclusion possible
- A larger cushion for economic black swans
- More money for expansion (GFs, service centers, superchargers)
- For only just over 1% dillution
What's not to like about this move?
Next thing we'll hear that Tesla has a lazy balance sheet.So first time ever Tesla's cash on hand supercede their debt? Come on Moody's!
I think the news outlets and tv analysts have learned not to doubt TSLA because they will inevitably look stupid soon thereafterCredit to CNBC. They are not selling a short story on this raise. Indicating that many believe it could have been a bigger raise and including the fact that it would time with S&P inclusion if it is to happen.
Two years ago Tesla would be getting trashed on this news
Yeah not so much on Bloomberg right now...characterizing it as dodging the scrutiny of a typical secondary, sigh.Credit to CNBC. They are not selling a short story on this raise. Indicating that many believe it could have been a bigger raise and including the fact that it would time with S&P inclusion if it is to happen.
Two years ago Tesla would be getting trashed on this news
Tesla price target raised to $290 from $170 at RBC Capital
Breaking News: TSLA latest news. - The Fly
'RBC Capital analyst Joseph Spak raised the firm's price target on Tesla to $290 from $170 but keeps an Underperform rating on the shares. The analyst acknowledges that the company transformed the industry in terms of its push toward electrification and vehicle architecture, also generating a consumer perception that it is a "superior vehicle", which may lead to market share gains and higher margins through premium pricing. Spak warns however that Tesla's "quality and service" of operation are "below average" and must be improved, while noting that he still sees the stock as "fundamentally overvalued".
I think we're going to be entering a Tesla analyst replacement supercycle.