Earlier quoted context omitted.
What kind of company would you call it?
A battery/renewable energy company.
I thought panasonic was their white label battery supplier/partner?
Tencent buys 5% of Tesla
81–90 of 376 posts
Re: Tencent buys 5% of Tesla
#82Tesla 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.
Upside insurance isn't free. There's no free lunch.
Re: Tencent buys 5% of Tesla
#83Tesla shorts can't get a break. First a smooth $1B+ capital raise without a stock hiccup and now this.
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...
This is not a new raise. The filing indicates shares were primarily purchased on the open market and then topped off by the Goldman-led round earlier this month. No new dilution here.
Re: Tencent buys 5% of Tesla
#84Earlier quoted context omitted.
Actually, the reason GM "doesn't care" about the Volt (I'm exaggerating here; they obviously care a little bit ) is because they're rational: electric cars are not popular with mass-market consumers, and it's far from clear that they're going to become popular. GM is investing in what sells, and right now (i.e. for the last decade or two), that's SUVs and light trucks. Which doesn't bode well for Tesla, at least in t…
I'm having a hard time connecting the facts with the discussion. Are you saying that GM should have made a crossover instead of the Volt/Bolt? Are you saying that Tesla doesn't have a crossover?
"I'm having a hard time connecting the facts with the discussion. Are you saying that GM should have made a crossover instead of the Volt/Bolt? Are you saying that Tesla doesn't have a crossover?"
GM already has a crossover line. In fact, it has a bunch, and they sell really well:
http://www.gmfleet.com/vehicle-search/by-body-style/suvs-cro...
Point out Tesla's crossover SUV with the range of a gasoline vehicle and the price point of a Chevy Equinox ($25k). I'll wait.
Re: Tencent buys 5% of Tesla
#85Earlier 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...
> The raise will dilute earnings for common shareholders, so definitely a downward force on stock price. The stock is detached from reality. It's my understanding that this was another offering, so, essentially, Tesla sold 5% to Tencent at an average price of $217 and change. Current shareholders get diluted. Prices go up. I don't get it, but I'd love an explanation. Were people, prior to these capital raises, concer…
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Re: Tencent buys 5% of Tesla
#86Earlier 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...
> The raise will dilute earnings for common shareholders, so definitely a downward force on stock price. The stock is detached from reality. It's my understanding that this was another offering, so, essentially, Tesla sold 5% to Tencent at an average price of $217 and change. Current shareholders get diluted. Prices go up. I don't get it, but I'd love an explanation. Were people, prior to these capital raises, concer…
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Re: Tencent buys 5% of Tesla
#87Earlier 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?
Is that true? I've never read the SEC rules or looked into this in detail but my understanding was that information sharing only becomes a problem if you actually trade on that information (ie. insider trading). I didn't know the rules actually tried to limit what was shared. How does that work with employees etc, who will almost certainly have access to a lot of preferential information and many also be investors or significant shareholders? Would love to know more!
Re: Tencent buys 5% of Tesla
#88Tesla 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.
This was not a capital raise. Read the filing. Tencent acquired most of the shares on the open market and the remainder in the round that was announced earlier this month.
Re: Tencent buys 5% of Tesla
#89Earlier quoted context omitted.
They changed their name because they bought Elon's solar company (which was also not a tech company).
I'm curious about what you would consider a tech company. For me a tech company is any company that uses the development of technology as a competitive advantage. Solar is not, major solar companies are not developing innovative technology. Tesla is, they do not have an advantage in scale or low prices, but have advantage in how their vehicles function.
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Re: Tencent buys 5% of Tesla
#90Earlier quoted context omitted.
A battery/renewable energy company.
I thought panasonic was their white label battery supplier/partner?
Yes, but even they can't keep up with the projected demand for batteries which is why Tesla is building out its own factory [1] in partnership with Panasonic [2] to manufacture batteries.
[1] https://www.tesla.com/gigafactory
[2] https://www.tesla.com/blog/panasonic-and-tesla-sign-agreemen...