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Tesla (TSLA) takes advantage of its huge run-up to file a mixed shelf. Shares -2.9% AH. (S-3)

Tesla (TSLA) takes advantage of its huge run-up to file a mixed shelf. Shares -2.9% AH. (S-3)
Comments (25)
  • SoldHigh
    , contributor
    Comments (995) | Send Message
     
    Excellent move by tsla - now if company is smart, they'll sell a HUGE amount of stock with both fists to these fools and raise 100s of millions.
    15 May 2013, 04:15 PM Reply Like
  • Cassina Tarsia
    , contributor
    Comments (640) | Send Message
     
    So ... what is "a mixed shelf"?
    15 May 2013, 04:16 PM Reply Like
  • SoldHigh
    , contributor
    Comments (995) | Send Message
     
    Usually, stock and convertible debt
    15 May 2013, 04:19 PM Reply Like
  • wigit5
    , contributor
    Comments (3905) | Send Message
     
    About time
    15 May 2013, 04:19 PM Reply Like
  • Esekla
    , contributor
    Comments (2266) | Send Message
     
    Except I could have sworn I heard Musk say in the Q&A of the last earnings report, that there were no plans for another stock offering.
    15 May 2013, 04:23 PM Reply Like
  • wigit5
    , contributor
    Comments (3905) | Send Message
     
    I don't think he would say that seems short sighted given that they aren't really 'established' yet... I'll try and search the earnings transcript was it during the Q&A?
    15 May 2013, 04:26 PM Reply Like
  • keithrez
    , contributor
    Comments (44) | Send Message
     
    Last report was 40-50 points lower!!!
    15 May 2013, 04:27 PM Reply Like
  • Esekla
    , contributor
    Comments (2266) | Send Message
     
    Yep, there it is, just one week ago in response to the question by Adam Jonas of MS. Elon Musk says, "Well, we don't have any plans right now to raise funding."

     

    You gotta hand it to him, he gives slimey car salesmen, a whole new image.. or at least a whole new shine on the traditional one.
    15 May 2013, 04:29 PM Reply Like
  • wigit5
    , contributor
    Comments (3905) | Send Message
     
    lol and the stock is rocketing up in AH apparently
    15 May 2013, 04:33 PM Reply Like
  • keithrez
    , contributor
    Comments (44) | Send Message
     
    Sorry Esekla, I can't agree. First, the stock is up nearly 100% in that one week, and we aren't exactly talking about a $1 stock. Second, he apparently is buying shares in the offering, so who is the slimy car salesman?
    15 May 2013, 04:34 PM Reply Like
  • Esekla
    , contributor
    Comments (2266) | Send Message
     
    Hey, I've gotta hand it to him, he knows how to play the game, not that it will help retail investors in the long run. It doesn't matter who buys the shares, just like it apparently doesn't matter what he said, dilution is still dilution.
    15 May 2013, 04:41 PM Reply Like
  • Nicu Mihalache
    , contributor
    Comments (1024) | Send Message
     
    @ Esekla

     

    He warned shorts many times. Now he is on top and punching :)
    15 May 2013, 04:52 PM Reply Like
  • Esekla
    , contributor
    Comments (2266) | Send Message
     
    Nicu, it doesn't matter to me, I got out before any of this nonsense started, but selling more shares does not hurt shorts, it dilutes anyone who is already invested.
    15 May 2013, 05:15 PM Reply Like
  • Nicu Mihalache
    , contributor
    Comments (1024) | Send Message
     
    2.7M share will not make a huge difference; take out those which go into Elon's pocket, we will never see them again. I would say 2M shares in a market that has traded 100 times that during the last coupe of weeks is not a big deal.
    15 May 2013, 05:19 PM Reply Like
  • Esekla
    , contributor
    Comments (2266) | Send Message
     
    agreed on that point, this really isn't a big deal either way from a mechanics of short squeeze perspective.
    15 May 2013, 05:32 PM Reply Like
  • bgotchall
    , contributor
    Comments (2) | Send Message
     
    He said they had not talked about it yet but would not rule out an "opportunistic" offering.
    15 May 2013, 05:34 PM Reply Like
  • parko
    , contributor
    Comments (33) | Send Message
     
    Esekla, actually this is what he said: “It is always possible that we could be opportunistic about raising a round, but..we’ve spent no time on that at all,"

     

    With the recent rally and their tight cash position, they would have been foolish not to take the opportunity now, so no wrong doing from Musk or Tesla here.
    15 May 2013, 05:35 PM Reply Like
  • MatrixUSA
    , contributor
    Comments (60) | Send Message
     
    Esekla,

     

    Re Dilution: You must be confusing TSLA with SIRI !!!
    15 May 2013, 07:11 PM Reply Like
  • joenjensen
    , contributor
    Comments (637) | Send Message
     
    What report was that? After hours tonight it was $90.50 and going up tomorrow. Maybe you short guys should buy more crying towels instead of getting your broker to loan more tsla stock to you, it will only make you short nightmare worse, or maybe break down and just do what we do.....buy it because it's worth every penny, then maybe you will make some money instead of loosing it.
    15 May 2013, 11:45 PM Reply Like
  • Surf Dog
    , contributor
    Comments (825) | Send Message
     
    parko:

     

    This is correct.

     

    I don't think he was misleading, or being slimy. He could not have known at the time how high the price would go and has adjusted to seize this opportunity. Can't blame him for being agile and smart.
    16 May 2013, 03:30 AM Reply Like
  • toruonu
    , contributor
    Comments (56) | Send Message
     
    I think a lot of shorts will have a better covering option now with more shares to go around... This will reduce the squeeze as there was far more buy wishers than sellers, now with 2.7M shares the liquidity increases while the company gains loads of money as well. I'd say it's a win-win situation :)
    15 May 2013, 04:35 PM Reply Like
  • ddharriman
    , contributor
    Comments (212) | Send Message
     
    @toruonu

     

    Except that the last time they did an offering at $28 in october, the shares rose 8%.

     

    After hours today, the stock is up 5%

     

    This makes it more EXPENSIVE to cover, regardless of the number of shares available.
    15 May 2013, 06:15 PM Reply Like
  • toruonu
    , contributor
    Comments (56) | Send Message
     
    Oh I'm long. It's just that the float increases a bit which adds liquidity and might overall improve it for shorts, but if you went short at 20-40 range you're screwed anyway as the stock will not see those levels again in the years to come. And I doubt tripling your short amount now would give a good return because even if there is a slight pullback I doubt it's anywhere close to a huge drop. Better cover those shorts.

     

    Also I hadn't read yet that a big chunk of the offer goes straight to Elon showing that he's confident the stock will go even higher and not that much improving the float amount.

     

    There will be a correction, but I doubt it's gonna happen this month. Elon and Tesla overall are doing an excellent work playing the news with regular weekly small positive announcements that will continue for another few weeks at least. This keeps the stock going in one direction only.
    16 May 2013, 03:15 AM Reply Like
  • IntelligentInvester
    , contributor
    Comments (17) | Send Message
     
    how will this affect current share price?
    15 May 2013, 05:33 PM Reply Like
  • oldpartsnrust
    , contributor
    Comments (284) | Send Message
     
    Bravo Tesla!
    15 May 2013, 10:03 PM Reply Like
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