Mike Smith
Active Member
I think that's only true for selling. I'm pretty sure he can buy as much as he wants, whenever he wants - he just has to disclose it. No?
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I think that's only true for selling. I'm pretty sure he can buy as much as he wants, whenever he wants - he just has to disclose it. No?
Material Insider Information
It appear to depend on MNPI status (Material nonpublic information) a pre-setup 10b5-1 allow trades at time of MNPI that are not based on the MNPI.
Rule 10b5-1
With that kind of view you are blessed. All is relative; think this is the final desperate battle of the short sellers. They are spreading the FUD because they know they are about to loose the war. Tesla is about to start to make positive cash flow and profit. It is all over for them then. The only hope they have is the spreading of this FUD. They will not succeed though..
Apparently in the past, even though Tesla has long said it would redeem the principal amount of all convertible notes using cash:
"Since we expect to settle in cash the principal outstanding under the 0.25% Convertible Senior Notes due in 2019, the 1.25% Convertible Senior Notes due in 2021 and the 2.375% Convertible Senior Notes due in 2022, we use the treasury stock method when calculating their potential dilutive effect, if any"
In 2017, it began using shares for early redemptions of the 2018 convertibles:
On May 31, 2017, Tesla, Inc. (the “Company”) entered into separate privately negotiated agreements with certain holders of its outstanding 1.50% Convertible Senior Notes due 2018 (the “Notes”) to exchange approximately 1.16 million shares (the “Shares”) of the Company’s common stock, par value $0.001 per share, for approximately $144.8 million in aggregate principal amount of the Notes (the “Exchange Transactions”). The Exchange Transactions were conducted as private placement transactions and the Shares were issued pursuant to an exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”) and were offered only to persons believed to be either (i) “accredited investors” within the meaning of Rule 501 of Regulation D promulgated under the Securities Act or (ii) “qualified institutional buyers” within the meaning of Rule 144A promulgated under the Securities Act. The Company relied on this exemption from registration based in part on the representations made by the holders of Notes in the Exchange Transactions.
The 10k summarized the share-based redemptions as:
In the second quarter of 2017, $144.8 million in aggregate principal amount of the 2018 Notes were exchanged for 1,163,442 shares of our common stock ... As a result, we recognized a loss on debt extinguishment of $1.1 million.
In the third quarter of 2017, $42.7 million in aggregate principal amount of the 2018 Notes were exchanged or converted for 250,198 shares of our common stock ... and $32.7 million in cash. As a result, we recognized a loss on debt extinguishment of $0.3 million.
In the fourth quarter of 2017, $12.0 million in aggregate principal amount of the 2018 Notes were exchanged or converted for 96,634 shares of our common stock ... As a result, we recognized a loss on debt extinguishment of $0.1 million.
The coupon on the 2019 notes is 0.25%. IMO, it's in the shareholders interest to use shares to redeem that debt as new debt (even if another convertible) will likely have a much higher coupon. The coupon on the 2022 convertible notes issued in March, 2017 was 2.375% and bonds issued in August 2017 was 5.3%--FINRA shows recent trades with a yield of 7.36% since they are trading below par.In the third quarter of 2017, $42.7 million in aggregate principal amount of the 2018 Notes were exchanged or converted for 250,198 shares of our common stock ... and $32.7 million in cash. As a result, we recognized a loss on debt extinguishment of $0.3 million.
In the fourth quarter of 2017, $12.0 million in aggregate principal amount of the 2018 Notes were exchanged or converted for 96,634 shares of our common stock ... As a result, we recognized a loss on debt extinguishment of $0.1 million.
IIRC, there are covenants in the ABL regarding new debt.
we can keep an eye on the pace and character of media responses to Elon’s tweets about the media.
Pravduh tweets last month were swiftly met with a flood of media commentary calling him paranoid, unfit to run a company, Trump-like, desperate and pointing fingers at everyone else for his so-called sinking ship.
So far I’ve only seen this,
Elon Musk lashes out at the media, again
note
1) it’s far less agressive in framing Musk in unflattering terms
2) Business Insider, Reuters, and CNBC all declined requests for comment from the author (and it was a CNBC article)
3) again, it’s the only direct article on this early AM’s Elon Tweets appearing at this point
It’s quite early, but, maybe, this is the first sign that the amount of teeth/cards showing through Elon’s tweets have changed the game to the point that at least some of these media outlets are now looking at what they pump out about Elon, Tesla, and its products, with an eye towards potentially being held legally responsible in a context where they do not know all the cards Elon is holding.
Remember, per Taibbi’s book, it was a lawsuit by Fairfax Financial that turned back the game Chanos et al were playing with media, Fairfax employees, regulators, etc, to try to steer Fairfax into a fabricated crisis of confidence.
Pravduh tweets last month were swiftly met with a flood of media commentary calling him paranoid, unfit to run a company, Trump-like, desperate and pointing fingers at everyone else for his so-called sinking ship.
So far I’ve only seen this,
Elon Musk lashes out at the media, again
note
1) it’s far less agressive in framing Musk in unflattering terms
2) Business Insider, Reuters, and CNBC all declined requests for comment from the author (and it was a CNBC article)
3) again, it’s the only direct article on this early AM’s Elon Tweets appearing at this point
It’s quite early, but, maybe, this is the first sign that the amount of teeth/cards showing through Elon’s tweets have changed the game to the point that at least some of these media outlets are now looking at what they pump out about Elon, Tesla, and its products, with an eye towards potentially being held legally responsible in a context where they do not know all the cards Elon is holding.
Remember, per Taibbi’s book, it was a lawsuit by Fairfax Financial that turned back the game Chanos et al were playing with media, Fairfax employees, regulators, etc, to try to steer Fairfax into a fabricated crisis of confidence.
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Thanks. Do you have a view about: When & where will Tesla start producing Semis for sale?
Occurs to me that Elon would not have tweeted what he did regarding Lopez without evidence, otherwise he will be sued for libel, no?
The Blue Owl
Endangerous Herbivore
This article is content-free, other than reposting Elon's Twitter thread. I'm willing to bet that the flurry of negative media directed at Musk will continue and be increasingly vicious.
FirebirdAlpha
Member
I'm not so sure. The next big news item has to be the Q2 earnings, which could be pretty bad. They spent a bunch of money on CapEx last quarter, including air lifting heavy machinery. They spent a bunch of money on overtime pay for 12-hour factory shifts. And they didn't deliver as many cars as Wall St hoped. On the positive side, there was a lot of cash coming in with 2.5k configuration deposits.
All-in-all, it looks like their cash position has gotten pretty bad. I'm not sure shorts will cover.
The Q2 call will focus a lot on forecasts, capital requirements, and reservation numbers.
No, he asked a question versus stated a potentially factually backed opinion. (opinions are also somewhat protected speech)
"Are you a shill?"
vs
"I think you are a shill"
vs
"I have data proving you are a shill."
Well Ladies and Gentlemens I'm going to ride my sustainable bicycle and I do not care what FUDsters are saying.
I like how he uses their tactics against them.
Quite sick of reading misleading headlines phrased as questions.
The Blue Owl
Endangerous Herbivore
Toni Sacconaghi has been dead right on Tesla, says Jim Cramer
Cramer doing his part on CNBC. Compares Tesla with Herbalife. 'You need more sellers!' [for the short to be effective].
Just an honest day's work.
Cramer doing his part on CNBC. Compares Tesla with Herbalife. 'You need more sellers!' [for the short to be effective].
Just an honest day's work.
I don't think there are many even in Big Oil/coal, ... who can justify spending billions just to delay Tesla a little. The electic car will be here to stay, thanks China.
Do these raiders make or not make money currently? I'd really like to know.
I agree, we have lived in the best of times, and things can get better.
However, odds are things will get much worse instead.
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