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Tencent buys 5% of Tesla

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21–30 of 376 posts

Re: Tencent buys 5% of Tesla

#21
post #9

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...

There's this guy named Jim Chanos...

Re: Tencent buys 5% of Tesla

#22
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.

Sounds like confirmation bias, also one of life's mysteries.

Re: Tencent buys 5% of Tesla

#23

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

This is why you should purchase put options instead of short selling. Exposure to short selling is theoretically infinite. Exposure to put options is just the price you paid for the option.

Shorting generally should only be for companies whose solvency is in doubt.

Re: Tencent buys 5% of Tesla

#24
post #8

Earlier 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?

not if they have board seats

Re: Tencent buys 5% of Tesla

#25
post #8

Earlier 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?

[deleted]

Re: Tencent buys 5% of Tesla

#26

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.

Who says the capital raise is a 'wide open positive'? As someone long TSLA I'm not ecstatic. But short of selling my stock, how else can I signal?

Re: Tencent buys 5% of Tesla

#28
post #14

Earlier 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.

They changed their name this year from Tesla Motors to Tesla Inc. to indicate a wider focus on technologies, not just cars (solar panels, batteries). How do they not qualify as a tech company?

Re: Tencent buys 5% of Tesla

#29
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.

Citation definitely needed.

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

#30

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 ……

> but not controlling strategy

I mean, they bought all of league of legends. Their primary driver is most likely "let's make money".

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