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...
Tencent buys 5% of Tesla
21–30 of 376 posts
Re: Tencent buys 5% of Tesla
#22Earlier 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.
Re: Tencent buys 5% of Tesla
#23Tesla shorts can't get a break. First a smooth $1B+ capital raise without a stock hiccup and now this.
Shorting generally should only be for companies whose solvency is in doubt.
Re: Tencent buys 5% of Tesla
#24Earlier quoted context omitted.
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
#25Earlier quoted context omitted.
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
#26Tesla 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
#27Re: Tencent buys 5% of Tesla
#28Earlier quoted context omitted.
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
#29Earlier 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.
Most of my investments are in stocks and funds outside of where I live (Netherlands). Guess which parts of my portfolio aren't doing so well? The EU bonds.
Re: Tencent buys 5% of Tesla
#30Smart 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 mean, they bought all of league of legends. Their primary driver is most likely "let's make money".