TSLA Market Action: 2018 Investor Roundtable

[Unpilot]

Is it just me ...or does this last few weeks seem like more of roller coaster then normal? And with that a sense the end game is getting closer. When a cornered animal is...well..cornered they get vicious.

To my untrained eye the shorts/naysayer's are cornered and are lashing out in hopes they survive.
As long as Tesla stay's public they have a channel (CNBC Et. al) to push garbage out with just enough truth to seem legit.
Once the company goes private that money/click bait train stops.

I feel for those people on a human, moral sense. But the vindictive side of me sort of relishes them being squashed.

 

[madodel]

What’s wrong with stating the price if he had backing for that? In Monday’s blog post he explained that he wanted to discuss the go-private plans with some of the big investors and take their temperature on whether they would participate in TSLAP. Price is obviously an important part of the equation — they might feel differently if the price were $350 v. $420 v $500.

More broadly, I don’t get why people are criticizing Elon for announcing the deal when he did. Would you have preferred being kept in the dark while he informed the big investors about it? Talking to them was obviously an essential step in the process of figuring out how much cash needs to be raised.

Do people like being kept in the dark while the big fish are fed valuable information?

People can debate the words that were used but I really don’t understand why some seem to think it would be better to have less information or get it later than big institutional investors.

People complain about a lack of transparency and not knowing what is going on with Tesla and now Elon gave everyone, not just the big boys the information he had and now people parse it and bitch about it and how he shouldn't have done this but should have done that. Basically if you don't like the way Elon runs his companies than start your own. I'm sure it will be run perfectly. I'm used to the trolls doing this because they'll do anything to attack Musk and Tesla. But now it is pretty much everyone. In a few months all this nonsense goes away, thankfully.

 

[ggr]

You keep making this false statement. Again, secured does not mean papers signed and filed.

Thank you, and I agree with you. I'm having a lot of trouble keeping my moderator alter-ego from treating statements about "funding not secured" or "Elon lied" as materially false.

 

[Krugerrand]

In the cut-throat world of Connect Four we call this "the Russian Squeeze", there is no exit and you've all but lost. All that's left is to see how bad the shorts get punished.

Can you put an actual date stamp on when this Russian Squeeze happens? So far I’ve only seen the SP go down, down and then down some more. I don’t think that’s a bad thing for shorts but maybe I’m wrong?!

 

[Tslynk67]

The problem is that he set a price ($420) like a previous poster said AND made false statements that funding was secured when it's rather obvious now it wasn't at all secured.

Just to clarify that I don't believe Elon made false statements. Maybe he was being his usual over-optimistic self, but in no way do I think he was trying to manipulate the stock. If anything he's tamed it somewhat by stating 420. Could be that he was setting expectations with that too, so that when they come back with a deal for 450, everyone will hug each other.

I still think he rushed it out though to head-off SA accumulating too much, but that's just my WAG.

Good production news coming from freemont .... too bad the being drowned out over all the SEC nonsense .....

Once again I’ll say it ... Musk should delete his personal twitter account and Tesla should have an official twitter that is managed by Tesla’s internal social media team.

Musk should concentrate on doing what he does best ... innovating and executing his vision.

So tired of hearing all the crap about stick price and manipulation .... the fundamental story is getting lost ...sigh.

Cheers to the longs

Actually, his twitter account is a huge asset and generally he uses it very well. Aside the incredible Tesla products and Elon's vision for where we need to go, the fact that he reaches out to normal Joes like us is part of the appeal. So no, I don't want him to stop with that.

Just get Alfred to take his phone away at a certain time in the evening.

 

[Buddyroe]

When I read the tweet about going private and having funding, I wasn't worried at all because I figured Musk surely runs this stuff by the company's lawyers before he tweets. With how sensitive the financial laws are, I can't see how EM could possibly think he would know what would be allowed and not allowed. I know I would be nervous as a cat making that post - especially given his heightened visibility and all the haters looking for anything to use to bring him (and Tesla) down.

I literally read comments on articles with this exact phrase - "I can't wait until Tesla goes under." Man, that's some serious hate. I swear some people pray at night with their kids, and before praying for the safety of their family, they pray for the demise of Tesla.

 

[Drax7]

Ideally Tesla should be run by a lawyer.
Any thoughts?

 

[EVMeister]

Ideally Tesla should be run by a lawyer.
Any thoughts?

Perhaps a lawyer should "filter" Elon before he Tweets. But I can't see how being a lawyer qualifies somebody to run a company like Tesla. In terms of actually running the company and inspiring workers and members of the public, I think Elon does a damn good job.

 

[Kalllagtunet]

Thank you, and I agree with you. I'm having a lot of trouble keeping my moderator alter-ego from treating statements about "funding not secured" or "Elon lied" as materially false.

He did not only say funding secure (with an spesific price) but also: Investor support is confirmed. Only reason why this is not certain is that it’s contingent on a shareholder vote.

There seems to be a bit more work than there wote before Tesla is private. If this is not stretching the truth well into a fase statement then anything goes.

 

[JRP3]

The U.S. Securities and Exchange Commission under President Donald Trump has moved away from the practice of leveling huge monetary penalties against corporations.

That enforcement trend, according to four experts, could benefit Tesla as the company faces an SEC investigation of CEO Elon Musk's Aug. 7 tweet about "secured" financing for a private buyout of the company.

I expect Tesla to pay zero, said Georgetown law professor Urska Velikonja, who is engaged in an ongoing analysis of SEC enforcement trends against companies and individuals.

COLUMN-Tesla, Musk face SEC wrist slap at worst, experts say: Frankel

 

[KarenRei]

This is very bad price action. If you r looking for an entry point it will be lower. I stand by my posts from last week that a 32x this week is a high possibility. Certainly in the next few weeks.

Just sayin

Fully agree. I have buys at $331 and $321. Even this may be overoptimistic.

That said, we're not even close to a sell price here. Need a couple pieces of good news to spike it up to sell, before the shorts inevitably tear it back down I have a couple "just in case" sells at $369 and $379. Fully don't expect to see them go off any time soon.

 

[Krugerrand]

You mean like the one they already have?

Musk just needs a filter. Get him to accept that, and it's golden.

It’s what you consider his lack of filter that makes me appreciate him so very much.

In a world that often lacks transparency, honesty and trust in one another, especially in the business and political worlds; Elon’s honesty, emotions on his sleeve and all the rest you and some others find faulty is actually what I value most in him (followed closely by his chutzpah). There’s never any guessing what he’s thinking or going to do. He lays out the fluffiest, reddest red carpet that leads straight to the next step.

No, not even a little bit surprised or taken aback by his announcement in the middle of a trading day about taking Tesla private and having funding secured. My reaction was actually the same as when the Solar City merger was announced: about damn time, what took you so long!?

 

[JRP3]

He did not only say funding secure (with an spesific price) but also: Investor support is confirmed. Only reason why this is not certain is that it’s contingent on a shareholder vote.

There seems to be a bit more work than there wote before Tesla is private. If this is not stretching the truth well into a fase statement then anything goes.

"Investor support is confirmed" doesn't have to mean every investor supports it. If he talks to majority shareholders and they say they are on board that's good enough.

 

[dondy]

The problem is that he set a price ($420) like a previous poster said AND made false statements that funding was secured when it's rather obvious now it wasn't at all secured. In the corporate world, there'd have to be several more tasks completed before he should be stating what he did. If he was trying to just be honest and transparent to retail investors he could have just said he's been approached and is in discussions to take Tesla private. That would be fully transparent to everyone without the appearance of stock manipulation (whether true intent or not).

So what steps did he miss? Really curious. Everybody makes mistakes, and it's always the best to find which, what and when.
so what mistakes did he do?


He has enough funds to start privatization process, he tweeted exactly that. He is not on receiving side of this trade. He is buying back his company.
he found the money now, and the question is how much of it he is going to show in his offer to the Tesla, what choices major investors are going to make and the specific financing choices that will be chosen. There are always variants and here you have a transaction where the total service fees and legal costs could rocket a few bln easily.
For the rest of the world it is most probably the last full week to wait and to enjoy in the meantime this media circus with desperate clowns searching for last straws.
I can even survive watching more than 30s of CNBC and Bloomberg now. I enjoy their "Tesla" rounds. They are adorable in their "convictions".

 

[brian45011]

Ideally Tesla should be run by a lawyer.
Any thoughts?

Cramer claims to have a law degree but a younger generation's equivalent of Herb Kelleher might be better.

 

[Dan Detweiler]

Good production news coming from freemont .... too bad the being drowned out over all the SEC nonsense .....


Once again I’ll say it ... Musk should delete his personal twitter account and Tesla should have an official twitter that is managed by Tesla’s internal social media team.

Musk should concentrate on doing what he does best ... innovating and executing his vision.

So tired of hearing all the crap about stick price and manipulation .... the fundamental story is getting lost ...sigh.

Cheers to the longs

Certainly understand your frustration. All the FUD is easily overwhelming. I do however think the fundamental story is stronger than ever. Look at production. Look at sales. Look at growth. I test drove a Performance Model 3 Tuesday. What an incredible machine. I think all this points to why Tesla really does need to be private...so they can focus on all the positives and not be drug down by shorts and day traders.

Dan

 

[Dan Detweiler]

Ideally Tesla should be run by a lawyer.
Any thoughts?

Totally agree!

Just as soon as Elon passes the bar.

Dan

 

[bdy0627]

This is very bad price action. If you r looking for an entry point it will be lower. I stand by my posts from last week that a 32x this week is a high possibility. Certainly in the next few weeks.

Just sayin

Chop Suey with no reversal yet, though the remaining downside risk is probably not large. Potentially positive buyout news seems to be out a week or two at least.

 

[Starno]

There's plenty of other (tech) stocks that allow investors/traders to benefit from the stupidity of the market. $MU, $NVDA, $FB ... If I can stay privately invested, I'll sleep soundly knowing my investment goes up steadily instead of having to stomach the rollercoaster ride that is the Tesla stock price.

From madodel : From what I read recently the rule only applies to US investors, so maybe the ability to buy private shares is governed by the locality. My daughter now has a few shares in her Fidelity acct but she is living in Germany. Since the Fidelity acct is US based and she is a US citizen I'm guessing US law will apply and she will have to sell. She'll have to invest vicariously through me I guess.


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See, that's why I'm not yet fully appreciating the deal.

 

[ZsoZso]

Ideally Tesla should be run by a lawyer.
Any thoughts?

If Tesla was run by a lawyer, I would be out of here (and TSLA) real fast, like: