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Tencent buys 5% of Tesla

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Re: Tencent buys 5% of Tesla

#11

Post by g123g »

PaulHoule wrote: post #10
jgalt212 wrote: post #7

Earlier quoted context omitted.

The raise will dilute earnings for common shareholders, so definitely a downward force on stock price. That being said, this investment and the recent raise you alluded to should clobber the put skew. http://www.volcube.com/resources/options-articles/what-is-op...

One of life's little mysteries is that you almost always lose money if you invest internationally. A friend of mine says it is because the locals know what is going on better than you do. Tencent was a major investor in Magic Leap and the Saudi Sovereign Fund invested heavily in .coms in early 2000. It is definitely not a sell signal, but I would not buy what Tencent is buying.

You should have told this fact to Yahoo management before they invested in Alibaba or maybe to Naspers before they invested in Tencent.

Re: Tencent buys 5% of Tesla

#12

Post by erikpukinskis »

ihsw2 wrote: post #8
smaili wrote: post #3

> Tencent is a prolific investor. It holds equity in Snap, this year’s hot tech IPO, among others following an early investment. While that interest in messaging makes sense since Tencent’s operates China’s dominant chat app — WeChat — it isn’t immediately clear whether the Tesla investment has strategic undertones. This was my immediate question as well. Is this purely an investment for its portfolio or is there a s…

Having access to the internals at Tesla is interesting and potentially powerful -- significant ownership share brings many benefits that are by no means small. Albeit on a need-to-know basis and through a peephole, it is nonetheless advantageous. It may cost $1.7B but it guarantees continued access, whereas throwing technical exfiltration (ie: hacking) and manual exfiltration (ie: mole in Tesla staff) whose resources…

Can you explain what kind of access you mean? I thought preferential information sharing with specific investors violated SEC rules?

Re: Tencent buys 5% of Tesla

#13

Post by marvin »

Mikeb85 wrote: post #9
jpeg_hero wrote: post #2

Tesla shorts can't get a break. First a smooth $1B+ capital raise without a stock hiccup and now this.

Is anyone actually short Tesla to a significant degree? I can understand the normal hedging positions and daily trading, but shorting a stock with so much positive sentiment is folly...

31 million TSLA shares are currently held short, which represents somewhere in the region of 20% of the non-insider shares. (Yahoo finance says 38% of the float, so I guess it depends how many shares you consider freely available on the market).

http://www.nasdaq.com/symbol/tsla/short-interest

Re: Tencent buys 5% of Tesla

#14

Post by jonknee »

Blackthorn wrote: post #5
jpeg_hero wrote: post #2

Tesla shorts can't get a break. First a smooth $1B+ capital raise without a stock hiccup and now this.

Every budding short seller needs to, at some point in their career, learn the lesson of never shorting a growth tech stock.

Or to confuse Tesla with a tech company.

Re: Tencent buys 5% of Tesla

#16

Post by creaghpatr »

smaili wrote: post #3

> Tencent is a prolific investor. It holds equity in Snap, this year’s hot tech IPO, among others following an early investment. While that interest in messaging makes sense since Tencent’s operates China’s dominant chat app — WeChat — it isn’t immediately clear whether the Tesla investment has strategic undertones. This was my immediate question as well. Is this purely an investment for its portfolio or is there a s…

Could be a portfolio diversification move- not sure how they financed it but China's currency is pretty inflated, we've seen a lot of large equity investments from the Chinese in the past 2 years (in Hollywood, for example).

If the CNY crashes for whatever reason they can dump the stock and flip the currency for a lot.

Re: Tencent buys 5% of Tesla

#17

Post by restalis »

marvin wrote: post #13
Mikeb85 wrote: post #9

Earlier quoted context omitted.

Is anyone actually short Tesla to a significant degree? I can understand the normal hedging positions and daily trading, but shorting a stock with so much positive sentiment is folly...

31 million TSLA shares are currently held short, which represents somewhere in the region of 20% of the non-insider shares. (Yahoo finance says 38% of the float, so I guess it depends how many shares you consider freely available on the market). http://www.nasdaq.com/symbol/tsla/short-interest

Petrodollar players doubling-down?

Re: Tencent buys 5% of Tesla

#18

Post by yeukhon »

turingbook wrote: post #6

Smart move. Tencent's investing but not controlling strategy make it good supporter of the new generation of ambitious entrepreneurs against AAAAF(Apple Alphabet Amazon Alibaba Facebook): - JD - Didi - Snap - Meituan-Dianping ……

I am not following. Who are the new generation of ambitious entrepreneurs?

Re: Tencent buys 5% of Tesla

#19

Post by prolly_a_moron »

jpeg_hero wrote: post #2

Tesla shorts can't get a break. First a smooth $1B+ capital raise without a stock hiccup and now this.

The stock has been stagnant for a long time, and it's still off its high. Shorts have done fine.

What's amazing are the longs seeing capital raises at mediocre terms as a wide open positive.

Re: Tencent buys 5% of Tesla

#20

Post by 11thEarlOfMar »

I see this move as a blessing for Tesla to gain market share in China. The stock is valued for growth far into the future, and achieving that outcome is really iffy without a robust China market.

[edit] I'm speculating, but I don't think TenCent could have gotten as big as it has without the blessing of the Chinese government. That is the basis for my view.

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