$TSLA

[vanzandt]

Apparently there are convertible bonds out there for the 360 price. Here is how it effects the price:

"I suspect a great deal of the bond arbitrage that is going on, will continue to bump up short levels, as it is essentially free money. It's a lot like repeatedly selling covered calls, without the equity risk, since the equity only comes into play if your position is a big winner."

"Dans, brilliant. . .that makes perfect sense.

This, all by itself, could explain why the stock seems to have trouble holding over $360/share.

Every time it gets above that point, a window opens for convertible bondholders to short shares against their bonds for arbitrage, locking in their bond value ("free CDS") and the difference between the exercise and stock prices. That, in turn would tend to drive the stock price back down, and it could happen repeatedly until every convertible bond is covered.

How many of these convertible bonds are there?

On the flip side, if the bonds are converted, even assuming all the bondholders just used the new shares to liquidate their short positions, there would still be associated dilution. Don't see how the stock could rise even with their short covering. .

If the bonds are not converted, then either they're paid in full at maturity, or they're not.

If they're not paid in full, TSLA is in bankruptcy court and then the bondholders will cover their shorts.

If they are paid in full, by definition, the bondholders are ahead on their short positions (otherwise they'd have been converted) and THEN the bondholders cover.

Now we get massive short coverage but without dilution. Wouldn't that drive up the stock price?"

https://seekingalpha.com/article/4182582-tesla-playing-blame-game

Did you write all that or is that a cut and paste? If you figured all that out on your own.... I'm gonna say that Fisetin stuff is working.

 

[Pekelo]

Did you write all that or is that a cut and paste?

Nope, not mine. I included the link at the bottom from the SA conversation. The best info is always in the comments.

 

[Pekelo]

From 366 to 346 in a few hours, no staying power what so ever. Maybe the bond holders shorting it like crazy...

 

[Pekelo]

I hope one day they make a TV series on Tesla:

"A June 20th report from Zero Hedge went even further, suggesting that the tent production line is little more than a Potemkin village:

…Earlier today covert videos showing the inside of the Model 3 production "tent", which houses the latest assembly line was leaked. What it reveals is concerning... because it reveals nothing at all: an assembly line with a handful of cars on it, with virtually no production, with no engaged workers and worst of all, no movement or purpose at all. Almost as if the whole facility is one elaborate stage prop to give the impression of work, as the actual workers just sit around and do nothing."

 

[vanzandt]

I hope one day they make a TV series on Tesla:

"A June 20th report from Zero Hedge went even further, suggesting that the tent production line is little more than a Potemkin village:

…Earlier today covert videos showing the inside of the Model 3 production "tent", which houses the latest assembly line was leaked. What it reveals is concerning... because it reveals nothing at all: an assembly line with a handful of cars on it, with virtually no production, with no engaged workers and worst of all, no movement or purpose at all. Almost as if the whole facility is one elaborate stage prop to give the impression of work, as the actual workers just sit around and do nothing."

I knew that assembly line looked rinky-dink.

 

[schweiz]

https://www.greencarreports.com/new...ercent-cancelations-on-tesla-model-3-deposits

But Musk denies: https://www.foxbusiness.com/markets/tesla-says-model-3-demand-steady-amid-cancellation-reports

Bad news is seen as fake news, and only good news is real news.

 

[vanzandt]

Would Apple ever take a stake in TSLA?

 

[Slider]

Would Apple ever take a stake in TSLA?

No, I doubt it.

Apple would more likely take a stake in CBS for its' content once Sumner Redstone passes on. (I think he is getting up there in age, maybe 93 or 94 years old.) Who knows? All speculation.

As for TSLA, it's a good trading vehicle, just watch out for Elon's tweets. He's really got some devoted followers...

 

[Pekelo]

No, I doubt it.
Apple would more likely take a stake in CBS

Why not both? CBS and TSLA are completely different companies. There is no reason why they couldn't invest in both.

Now they might don't like Elon's leadership and would do it if there was a change in the board.

 

[Pekelo]

If one wants an inside look into the cultist psyche, want no more. Here is an excellent although tedious example:

https://teslamotorsclub.com/tmc/threads/elon-musk-vs-short-sellers.118431/

The OP states a very long but flawed thesis about short sellers. Then the cultists chime in. There are only 3 guys making sense in the whole thread. Anytime they make a sensible factual post they are personally attacked, strawmaned or conspiracy theoried.

And that is why I hate Elon. Not because of his greed and lies, but because of his followers.