$TSLA
- Thread starter Phill Twist
- Start date
in two days TESLA shares grew 20$ someone knows why?
The buyers were more aggressive than the sellers
You see what I meant eleven days ago? The short is not over I'm afraid.
Short isn't over by a long shot but the capital raise takes near-term BK risk off the table; plus, it shows there's brisk institutional demand for the shares in the 240s.
Right now I have upside risk for a short position to ~$300, with $50 as a conservative downside target, so looking at a 2.3x payoff from here. As a macro short play, I'd say the game now is to either be flat or with a small core position, and look to add once we get a 2-3 month runup. Right now sentiment is in the shitter and they just had a very bad quarter, but the actual solvency risk to the business has receded.
A very good explanation why the recent capital raise was a bad deal for Tesla:
https://www.valuewalk.com/2019/05/tesla-raise-capital-convertible-bond/
https://www.valuewalk.com/2019/05/tesla-raise-capital-convertible-bond/
Interesting article, but anyone who looked at the quote for the 2025 bond could already tell that TSLA debt was yielding over 8% before the recent capital raise.
I guess the point here was that they couldn't even do a straight bond issue, they had to do this convoluted stock/calls/whatever combo.
I don't think you understand the trade.