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Tesla Faces U.S. Criminal Probe Over Musk Statements

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Re: Tesla Faces U.S. Criminal Probe Over Musk Statements

#91

Post by ebiggs »

Asparagirl wrote: post #38
chollida1 wrote: post #5

The sad piece of karma in all of this is that Musk tweeted in an effort to destroy the shorts. His tweet turned out to: - give the shorts a big dip in his stock, - an investigation by the SEC - an investigation by the DOJ - the backing off of a deep pocketed investor in the Saudis - Him potentially being personally liable, which would mean having to step away from SpaceX and Tesla if he was found guilty of fraud. Thi…

It’s important to note that Elon screwed over the “longs” (people holding TSLA stock) too, not just the shorts. Many people and funds bought more TSLA stock in the $350’s range on the assumption that of course the company could/would go private at $420/share. After all, hadn’t the CEO just said so?

Nope, he never said so. He used the word "considering" - to interpret that to mean it's a done deal is stupid, and all the risk you take is your own.

Re: Tesla Faces U.S. Criminal Probe Over Musk Statements

#92

Post by S_A_P »

_Codemonkeyism wrote: post #77
S_A_P wrote: post #53

Sometimes its possible to care so much that you lose sight of what is important. This happened to Elon. I think this will be a case study someday about CEO ethics. I found it very interesting that when he was on the Joe Rogan podcast he had so much to say about social media, and none of it was complementary. How he did not see the dichotomy of his twitter use and this situation strikes me as humorous. I feel like Elo…

"I'm using social media the right way, the others are doing it wrong and I wish they'd go away". Always the same line of thinking.

I could take your comment as either a dig at me or at Elon. I can see how either is applicable(and valid). I think I can just add that if I screw up on Twitter, there would not be the same consequences to a business or shareholders that Elon may face, but obviously it is not my place to tell him or anyone else they are doing it wrong.

Re: Tesla Faces U.S. Criminal Probe Over Musk Statements

#93

Post by saudioger »

chollida1 wrote: post #5

The sad piece of karma in all of this is that Musk tweeted in an effort to destroy the shorts. His tweet turned out to: - give the shorts a big dip in his stock, - an investigation by the SEC - an investigation by the DOJ - the backing off of a deep pocketed investor in the Saudis - Him potentially being personally liable, which would mean having to step away from SpaceX and Tesla if he was found guilty of fraud. Thi…

I seriously hope that through this Elon Musk learns that he's not an expert at everything and sometimes he needs to shut up and listen, but I doubt it.

If he can't weasel his way out of this, I imagine he'll continue to spiral and lash-out... all this because he just can't shut up.

Re: Tesla Faces U.S. Criminal Probe Over Musk Statements

#94

Post by pmcollins »

chollida1 wrote: post #5

The sad piece of karma in all of this is that Musk tweeted in an effort to destroy the shorts. His tweet turned out to: - give the shorts a big dip in his stock, - an investigation by the SEC - an investigation by the DOJ - the backing off of a deep pocketed investor in the Saudis - Him potentially being personally liable, which would mean having to step away from SpaceX and Tesla if he was found guilty of fraud. Thi…

> Musk tweeted in an effort to destroy the shorts

Is there any evidence that this was his intent? How do you know that he didn't actually intend to take the company private?

Re: Tesla Faces U.S. Criminal Probe Over Musk Statements

#95

Post by riphay »

staplers wrote: post #75
Asparagirl wrote: post #38

Earlier quoted context omitted.

It’s important to note that Elon screwed over the “longs” (people holding TSLA stock) too, not just the shorts. Many people and funds bought more TSLA stock in the $350’s range on the assumption that of course the company could/would go private at $420/share. After all, hadn’t the CEO just said so?

Longs are not "people holding stock". A long is purchased on borrowed capital paid back with interest. It is a much riskier play.

Long is short-hand for anyone benefiting from the price of the stock rising. This includes people who own the stock outright, have bought on credit, own call options, have sold put options, etc.

Re: Tesla Faces U.S. Criminal Probe Over Musk Statements

#96

Post by dsfyu404ed »

PakG1 wrote: post #67
dsfyu404ed wrote: post #44

Earlier quoted context omitted.

>Gut says, long term Tesla will be fine and little will to come of this investigation. Or this could be their DeLorean moment. People's guts are notoriously bad at predicting the future.

Out of curiosity, what was the DeLorean moment? I know DeLorean didn't succeed in the long term. But what was this "moment" you're talking about? Google gave me nothing.

The part where the FBI set their sights on John DeLorean at the same time the company was trying to raise money to stay alive.

https://en.wikipedia.org/wiki/DeLorean_Motor_Company#Downtur...

If Tesla goes down because of this there will be a striking similarity.

Re: Tesla Faces U.S. Criminal Probe Over Musk Statements

#97

Post by nostrademons »

Imagine a private company with ballistic missiles and submarines...

I was musing the other day that Elon Musk may be planning to run for president. Why? Well, if there's one thing that 2016 showed us, it's that the road to the White House runs through snubbing Wall Street, calling the press a bunch of boring liars, accusing your opponents of pedophilia, making bizarre incoherent tweet storms in the middle of the night, and bragging about the size of your rocket.

Re: Tesla Faces U.S. Criminal Probe Over Musk Statements

#98

Post by defen »

danso wrote: post #57
whatok wrote: post #56

Earlier quoted context omitted.

Max loss being 10% is absolutely not accurate at all in that scenario. Taking the company private would still be up to a shareholder vote and shareholders could determine that the price offered was not sufficient. In that case, there are a lot of ways the stock could trade above the takeout price.

Isn't it possible to set the short order at a max limit to cut your losses? (this shows how little I know about having a trading account)

Sell short and buy a corresponding (shares short / 100) number of call options at $420 strike (which, in theory, if Musk were telling the truth, should essentially be worthless but in practice will come with some amount of premium). That way you have a guaranteed exit at $420/share + option premium paid. You could reduce your option premium cost while slightly increasing your max loss if you went with $430 calls or whatever.

Re: Tesla Faces U.S. Criminal Probe Over Musk Statements

#100

Post by [deleted] »

nostrademons wrote: post #97

Imagine a private company with ballistic missiles and submarines... I was musing the other day that Elon Musk may be planning to run for president. Why? Well, if there's one thing that 2016 showed us, it's that the road to the White House runs through snubbing Wall Street, calling the press a bunch of boring liars, accusing your opponents of pedophilia, making bizarre incoherent tweet storms in the middle of the nigh…

[deleted]
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