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

[MTL_HABS1909]

Not to fuel the fire, but Questrade had everything in order as of market open. Only thing that wasn’t was the daily gains calculations as it seems like valued for prior day were all out of whack. However, no need to call to place trades on shares or options. Everything right there and tradable and quoting Level 2 without a hitch.

I’m astonished that RBC, our largest institution by a huge margin, had any kind of delays. Especially as it seems like this wasn’t just an issue of Quebec infrastructure versus other provinces.

Exactly. A friend of mine is with Questrade and got all of his shares. Same thing for my wife who is with BMO. Yet we’re to believe that these two had no issues while the largest (and more bearish on TSLA) bank in Canada is having all these problems like a bunch of amateurs and can’t get me my shares? Ok.....

 

[lafrisbee]

I think Rob has spoke too quickly. If the Split were complete, wouldn't all "beneficiary owners" of TSLA have their dividend stock by now? Many have not been made whole yet, even though the shares were transmitted on Saturday to "beneficial owners" (only the largest, or institutional shareholders) and "shareholders of record" (most Brokers).

If there is a big drop in the SP over the next couple few days, but before these Blighters "Brokers" deliver these dividend shares, such that rightful TSLA owners miss the opportunity to sell at the ATH, there is going to be the "Mother of All Class Action Lawsuits", Ralph-Nader-esqe in scale.

And the clue is "We haven't received your shares yet from the Transfer Agent". Bee.eSS. You assigned fake shares that you don't own, and now the Transfer Agent is shorting you? That's rich, but you'll soon be poor (or bankrupt).

Word.

You have changed your tune?

 

[Artful Dodger]

They will likely start issuing these shares when SP starts going up too fast after the index funds begin buying. But it will probably only take the edge off it, as these 9 million shares are a drop in the bucket compared to the 130 million or so shares needed (based on the 26 million number that was calculated in this thread pre-split).

That 'pre-split' estimate of 26 M shares needed by Index Funds was based on the old TSLA Market Cap.

Since S&P 500 components are weighted by their Mkt Cap, you can muliply those 26M shares by 1.75x now to get the current likely weight if TSLA were included at this share price. That's about 46M shares.

This Cap Raise of $5B doesn't begin to touch that, and what's more, the way its structured it allows the SP to continue to go up daily, as Tesla agrees to a minimum sale price.

Didn't @Fact Checking call this the 'Infinity Squeeze'?

HODLing.

I think it's just as likely this is a quickie Cap raise to help the MMs out of the bind they're in over the next 2 days while they scramble to buy the shares they are obligated to provide to their "beneficial Owners".

I think there'll be more to come once S&P time comes around: this slightly unusual Cap raise sets the precedent for that and allows the S&P Committee to finally make their announcement.

All while Tesla benefits handily. This cash could not go to a better cause than Tesla's business plan thru 2025.

Let's ROLL!

Cheers!

 

[TheTalkingMule]

That's quite an impressive shove-down from $531 @7am all the way to $500. We shall see if it holds!

 

[Tslynk67]

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

Hardly anything, it's a token raise on Tesla's terms and a very good deal IMO. They've created the shares at yesterday's closing price and can sell them at market when they want.

So clearly to oil the S&P's wheels a bit - inclusion news coming tonight, tomorrow...?

 

[Right_Said_Fred]

I don't think so, because historically TSLA has rocketed up after almost every cap raise announcement (after a slight delay for the news to be digested). I expect this will be the same.

The main difference with previous cap raises is that this one is specifically aimed at softening the squeeze after S&P 500 inclusion. The recent run up is partly caused by the expectation of such a squeeze. How much dampening effect the extra shares will have on the squeeze remains to be seen, and the perception of this effect will likely determine where SP is headed in the coming few days. If the general opinion is that it will only take the edge off, we will probably go up. If the general opinion is that it will prevent a squeeze, we will likely go down.

 

[mongo]

Exactly. A friend of mine is with Questrade and got all of his shares. Same thing for my wife who is with BMO. Yet we’re to believe that these two had no issues while the largest (and more bearish on TSLA) bank in Canada is having all these problems like a bunch of amateurs and can’t get me my shares? Ok.....

Do they have the actual certified share certificates in hand, or are you just saying their account balance looks right?
One of those is trivial to do.

 

[Opus BC fan]

Once again my belief in my powers of prediction is shattered.
But I will get by...

(and console myself with watching the share price).

But then again, I may have been close...

 

[elasalle]

Battery Day - Proto Production Line is gonna multiply fast.

 

[Nocturnal]

Hard to imagine this is not connected to the S&P inclusion.

 

[Tslynk67]

Ha ha, is shorty trying to get the SP below yesterday's close thinking that Tesla will have to sell it new shares at a loss?? Priceless

 

[killianss]

Just bought yesterday, now this dilution will cause a dip, and I feel like buying again, everyday there is a reason to buy.

Always bought my shares at day high or ath.. never regret it

 

[Opus BC fan]

DJIA a little down...looks like we will be sailing into some headwinds today.

edit: corrected inaccuracy

 

[Singuy]

The main difference with previous cap raises is that this one is specifically aimed at softening the squeeze after S&P 500 inclusion. The recent run up is partly caused by the expectation of such a squeeze. How much dampening effect the extra shares will have on the squeeze remains to be seen, and the perception of this effect will likely determine where SP is heading in the coming few days. If the general opinion is that it will only take the edge off, we will probably go up. If the general opinion is that it will prevent a squeeze, we will likely go down.

If it's to prevent a squeeze by allowing indexers to purchase easier than they should do like a 20 billion dollar raise. I rather Tesla have the cash then ends up in the hand of profit takers who are here solely for the S&P play.

 

[theschnell]

The main difference with previous cap raises is that this one is specifically aimed at softening the squeeze after S&P 500 inclusion. The recent run up is partly caused by the expectation of such a squeeze. How much dampening effect the extra shares will have on the squeeze remains to be seen, and the perception of this effect will likely determine where SP is heading in the coming few days. If the general opinion is that it will only take the edge off, we will probably go up. If the general opinion is that it will prevent a squeeze, we will likely go down.

It may be aimed to look like it will soften the squeeze, but $5 billion will do precious little to actually soften the squeeze, which is why its so clever.

 

[MTL_HABS1909]

Wow this drop is insane! I really don’t understand how anyone can think $5B more in the bank is a bad thing....

 

[Todd Burch]

Wow this drop is insane! I really don’t understand how anyone can think $5B more in the bank is a bad thing....

Makes me wonder if it's yet another head-fake by the big boys to scare off the retail investors who don't really know what it means.

 

[Tslynk67]

Oh, so this is different from when they did it at around $700 awhile back? Cause they did announce a price then and everyone could try to get in.

Edit: Just saw that they are to be sold "at-the-market"

To me no fixed price almost guarantees there's a S&P inclusion anyday now.

Correct, here they can feed the market with more shares when they want, at the current market price.

Personally I think it's genius.

 

[Singuy]

Macros a little down...looks like we will be sailing into some headwinds today.

Zm earnings is providing qqq with positive macro so let's see where this ship sail today.

 

[HG Wells]

Wow this drop is insane! I really don’t understand how anyone can think $5B more in the bank is a bad thing....

Of course its a bad thing.
They will have to start building another gigafactory somewhere.
So many factories, so little time.