Yes, shorts can make capital expensive. This scenario of bond coming due is exactly the time they try to choke a company. If it does not have the cash, it has to go to the bond market. If it can't raise the cash it will go belly up. That is the short seller's idea/plan/hope/prayer.
This will not affect the day to day operation. Of course morale will suffer, some vendors will balk supplying, all kinds of secondary things will happen.
But back in Dec18 it said it is going to convert only 50% of the bonds. Cash for the rest. They had internal numbers and felt confident they could easily pay off 460 mill. That sent a signal the bond is no big deal for now. In the call they announced they have enough cash to pay the bond. The moment they dont need to raise fresh capital, all the leverage the shorts have are gone. They can't do anything other than trolling the net and pushing negative stories to the media.
Next bond is not due till 2020 Mar. So they will be pushing, "competition is coming", "demand is evaporating". Some truth in both. How much, to what extent? Lets wait and see.
These seem to be serious efforts by these companies.
Earlier they were going for some sort of compromised compliance cars. First time they are seriously attempting to compete. They wisely are not taking Tesla head on, but try to find a niche where they can operate. That is the important thing.
At the end of the day, if Tesla gets 20% of the world market for all automobiles, that would be immense, beyond the wildest imaginations of the most passionate supporters of Tesla. So even such a wildly pro Tesla scenario, 80% of the cars will be non Tesla. So other companies making serious attempts to make a good electric car should be encouraged.
It is not CFO retirement that dropped the stock. It is the delay in getting into SP500.
Tesla said 2019 Q1 profit will be small. Not big enough to have positive earnings in the trailing four quarters. Which means it wont get into SP500 in April 19. It will definitely get into SP500 in July 2019, when the 2018Q2 loss of 700 million rolls of the time window. So the market is readjusting the price for the 3 month delay, that is all.
Why? Shorts do not hurt a company's day to day operations. Stock price does not affect daily ops at all.
Stock price influences cost of capital. Any company depending on fresh capital could be seriously affected by short and slander schemes, (the opposite of pump and dump schemes). Most vulnerable to rumor mill are the banks and insurance companies. So much so, the banks are federally insured to some extent and heavily regulated with regards to capital requirements. Insurance companies are also seriously regulated and their books are audited. Tech companies in their cash burn phase are very vulnerable to bad news and rumors.
Tesla assumed the bond obligations of Solar City. Lots of people thought it has bitten a piece too big chew, and too big swallow and too stuck to spit out. So they hoped to cut Tesla's access to capital, make a killing, and probably pick the pieces at fire sale prices. That bet seems to have gone wrong.
Solar City bonds have hurt Tesla, but did not kill it.
True. As a plain statement of fact that is precisely true. If he had delivered a 35 K car 2 years ago... yeah, sure.
Also true, he did not.
But what he did deliver, 50K car 1 year ago is still a stunning achievement far beyond anything the traditional car companies managed to do so far.
There are some exciting announcements from them. There are some exciting products from them. Jaguar I-Pace, Hyundai Kona... Whether they beat Tesla, or they coexist with Tesla, or they reduce Tesla to be some boutique vendor of strange electric cars, Auto world has been shaken thoroughly to the core.
He is an Indian. Wrote his joint entrance examination in 1979, went to one of the IITs. Last name Ahuja. Very high chance his family had been civil servants to the governments for several generations. Indian civil servants retire at age 58. Might have changed recently but that is the traditional retirement age in India.
A very traditional Indian would start disavowing worldly pleasures and lose the "attachments or bonds" with the material, the mundane, the carnal self and prepare to connect with the spiritual universe, typically starting from age 60.
There is no real evidence he is that traditional, but such world view is very common in India, especially among the Brahmin castes. (Again no evidence that he is a twice born).
All western nations are losing population. America needs immigrants to keep the population count up, and to pay taxes etc. We have two choices, we can follow the 19th century pattern, any poor wretched souls who yearn to breath free wash up on our shores we will take. Or you can take high quality well educated law abiding people from India and China with a job who will immediately contribute to the economy. People like me.
H1B is a good way to make sure we take the best, not the rejects from the old world.
We were hoping Tesla will be included in SP500 index in April. But it has made 450 mill in Q3+Q4. And lost 700 mill in Q2. So to have positive earnings in the trailing four quarters, it needs to make 250 mill in Q1 of 19. But the conference call guidance was a very small profit. So it is not going to be included in April. But when 2019 Q2 comes in the 700 mill loss will roll off the time frame. So even if it makes a loss it will definitely make it. Results will be announced in July 2019, so certain to be included.
Market will anticipate it, index funds would have buy some 6 billion in TSLA stock. And steady purchase thereafter. But it is not something that trigger any kind of short squeeze of any kind.
Already big smart shorts have closed their positions. 41 million TSLA shares were shorted in Jun 2018. Now the number is around 24 million. Still high, but the trend is down. Two more months it might not be the most heavily shorted stock in the market.
Elon is surprisingly well behaved. If his demeanor is any indication, the company is doing very well.
Pretty soon it will get the government to pass a law to make it illegal to access databases without password. Then it will display a warning saying it is illegal to access this data base. And then wash its hands off saying, "we can't be held responsible for the criminal actions of the miscreants. Affected parties are advised to file complaints against the trespassers with the appropriate authorities who would do the needful". Then they will go return to status quo ante.
When you type in download chrome on the IE it prompts, "Did you mean Edge Browser download? Please please pretty please with a bow on try the Edge. If you search using Bing we will give you money too. And please give Cortana a chance. A chance that is all we beg for. "
Back in the day when smart phones were new, so many web sites scrunched their regular web page designed for 15 inch displays into those 3.5 inch screens. Now, they are designing their sites for 6 inch phones and are stretching the same thing on 24 inch displays.
Nothing to show what are clickable and what are not. There is no shortage of screen real estate, still the site comes with minimal info on huge fonts.
It is so easy to take over western institutions, amateur Russians are doing it for free on their spare time. Russian hackers are worried if their bosses knew their pay will be drastically cut.
I did not get this epiphany till I stared actually owning a BEV with 300 mile range.
Every mile of a gas car comes from the gas station. 90% of the electric miles come from an outlet in the garage from overnight charging. So these charging stations will dispense typically ten times fewer miles compared to day. Electric miles are four times cheaper than gas miles. So the revenue of these charging stations will be 1/40 th of present day gas station revenue.
Now there are 120,000 gas stations with total revenues of 450 billion dollars. If all of us start driving BEV, these charging stations will pull in collectively 11.5 billion dollars. At less than 0.1% marketshare, the total revenue of these chargers is around 11 million a year. The equipment needed is very expensive, Bolt charges at 50 kW, Teslas at 128 kW and Porches/VW are talking about 350 kW (800V systems). The transformers needed, and the heavy draw power equipment etc are expensive compared to simple pumps and underground tanks. The revenue just not justify the capital needed.
Independent charging stations, like gas stations, are not economically viable, it looks like. Utilities might build them at a loss, so that they can sell more electricity in garages and overnight charging. Car makers might build these networks at a loss. Governments might build it with subsidy to fight climate change. Companies might be forced to build these as a punishment for other wrong doing, (VW is building these stations under a consent decree for the dieselgate scandal).
If BEV market share reaches some threshold street part
After the changes take effect, a Facebook user could send an encrypted message to someone who has only a WhatsApp account, for example. Currently, that isn't possible because the apps are separate
Already my WhatsApp is being swamped with spam and forwards. There is no threading mechanism, no clear idea of what message is responding to whom. There is no way scroll past things I am not interested in. Pretty soon signal to noise degrades so much users resort to wholesale "delete all unread messages". I hate that damned thing.
But so many of the groups I am interested in insist on using WhatsApp. Easy, convenient, at hand. A typical alumni group of about 100 people have 10 people responsible for 90% of the postings. 10 more read those posts. The rest delete all messages blindly.
Now you allow Facebook users to spam the WhatsApp account. The already poor signal/noise ratio will degrade even further. I am hoping this finally kill WhatsApp for good and something better might emerge to take its place. Need the convenience and easy access, but some sort of threadable interface, some sort of AI learning who reads messages from whom and automatically group messages as "likely to be read" "likely to be skipped"...
In Indian text books the monarch who signed the Magna Cara is referred to as Maha John, to indicate he would be known as John the Great in English. I searched after the post and I could not find any instance of him being called John the Great.
The Magna Carta itself is translated as The Great Charter and is referred to as Maha Word_for_Charter_in_IndianLanguages. It is possible I was confused and conflated the two. I never studied European history formally in English.
Dubya got a better grade than John Kerry too. He too went there with connections. So did Trump into UPenn.
I guess you didn't go to an Ivy League school or never worked with someone who went to one. I didn't go to one but nearly every person I've worked with who has gone to one has been extremely bright and hard working
I am an IIT grad myself. The Ivy Leaguers I work with admire me. Of course, the respect is mutual, because the legacy quota Ivy Leaguers would not deign to rub shoulders with working stiffs like us. Even if they did they would not even grasp half of what we talk about.
For every minority grad dissed as an affirmative action baby, there is a legacy admission living on reflected glory.
Nope, it is not a veiled anti-semetic analysis. I studied this a lot when my daughter was applying for college. From the Indian-American POV.
In fact the Jews' lunch is being eaten away by the Indians. Old Money in USA was WASPs, Jews were the merit candidates, getting a degree and a ticket to ulcer inducing tense long hour financial industry jobs. The Indian immigrants since 1990s are giving a good run for the money for the Jews. Have you seen any spelling bees lately? Indians in Ivy Leagues typically score 150 points in SAT over other groups. No matter what holistic assessment crap the admission officers come up with, the Indians beat them and get in. It is so difficult to keep the Indians out, they are scrapping SAT scores, ACT scores and are going for totally subjective admission criterion.
The real losers in this arms race and battle are the merit WASPs. After old money WASPs take their fill, and Jews and Indians and Chinese take a bite out of merit quota, and minorities take their quota, there is very little left for the old fashioned meritorious upper middle class studious WASPs.
I ran the rat race in India, and won, got through JEE, got into IIT, got to USA and was hoping I ran the rat race, at least my daughter does not have to. Sadly mistaken. Along with me came a million Indians, all who had run the rat race and they brought the rat race with them. Winning a rat race is all they know. They dont realize even if you win a rat race, you are still a rat. A typical fly-over country WASP with decent education has no chance, does not know what hit him. Kumon, math lesson at age 2, multiplication tables memorised by age 4, local spelling bee geography bee champs by age 6, next year academic work completed in private summer classes, all year left to game the holistic admission criterion....
Hiring based on degrees is vital for the future of the Old Money, (not necessarily White, includes scions of rich families from the Middle East, India like Gandhis Nehrus Patels Boses) to maintain their hold on power.
Back in 1000s a bunch of aristocrats joined together and bargained for their rights and made John The Great sign Magna Carta. Its significance is limiting the power of the Monarch. Then the aristocrats ruled the country with their fiefdoms. Only they would get to be inducted into the Officer Corps of the army and all the teeming masses were consigned to "Other ranks" aka cannon fodder.
Renaissance, industrial revolution, the rise of mercantilism, colonialism all gave rise to new classes of wealthy people and they were inducted into the power structure by doling out aristocratic titles etc.
But the teeming masses, unseemly ungrateful bunch, made a power play and grabbed the hard won rights of the aristocrats for every one, suddenly the Old Money is on the back foot. They removed the power of the House of Lords, and The Commons had all the power, the Monarch a mere titular head, hereditary aristocratic titles have no meaning, the Heir to the Holy Roman Empire, Her Most Serene Princess someononeortheother is working for a wage in Economist or Tribune,...
The remnants of inducting only the aristocrats for the Officer Corps of the armed forces, merchant marine, and Civil Service morphed into "Degrees from Top Universities". Eton and such schools in Britain, Ivy League in USA, where there is a significant quota for the Old Money in the form of Legacies. About 50% on merit, 25% for the minorities, 25% of the Old Money Legacies seems to be the current quota system. Once these degrees are awarded, the graduates with connections get on to the fast track and get very rewarding very light duty sinecures, risk free jobs sitting on boards and VP of Beer Analysis or Executive Vice President of Trivial things. The graduates with merit end up with ulcer creating tense difficult, but well rewarded careers. The token minorities with degrees from top school, their prospects depend on cultivating/developing connections with the other groups. The degree alone does nothing for the minority graduates.
Slashdot Mirror
Since when you need evidence to convict someone of something in Russia?
The world is not big enough for two genii. Either Musk is a genius or Linus is. Both can't be. Not at the same time.
You can bracelets, but other than that it is pretty useless.
The dream remains the same. The dreamers look different that's all.
This will not affect the day to day operation. Of course morale will suffer, some vendors will balk supplying, all kinds of secondary things will happen.
But back in Dec18 it said it is going to convert only 50% of the bonds. Cash for the rest. They had internal numbers and felt confident they could easily pay off 460 mill. That sent a signal the bond is no big deal for now. In the call they announced they have enough cash to pay the bond. The moment they dont need to raise fresh capital, all the leverage the shorts have are gone. They can't do anything other than trolling the net and pushing negative stories to the media.
Next bond is not due till 2020 Mar. So they will be pushing, "competition is coming", "demand is evaporating". Some truth in both. How much, to what extent? Lets wait and see.
Earlier they were going for some sort of compromised compliance cars. First time they are seriously attempting to compete. They wisely are not taking Tesla head on, but try to find a niche where they can operate. That is the important thing.
At the end of the day, if Tesla gets 20% of the world market for all automobiles, that would be immense, beyond the wildest imaginations of the most passionate supporters of Tesla. So even such a wildly pro Tesla scenario, 80% of the cars will be non Tesla. So other companies making serious attempts to make a good electric car should be encouraged.
I am pro BEV. Of all makes.
It has barely gathered 50 comments over 12 hours.
Looks like most paid trolls have been reassigned and only the self motivated trolls are infesting these threads.
Looks like Tesla will be left alone soon, like Ford or GM. Of interest to a few people and does not attract clicks.
Tesla said 2019 Q1 profit will be small. Not big enough to have positive earnings in the trailing four quarters. Which means it wont get into SP500 in April 19. It will definitely get into SP500 in July 2019, when the 2018Q2 loss of 700 million rolls of the time window. So the market is readjusting the price for the 3 month delay, that is all.
Stock price influences cost of capital. Any company depending on fresh capital could be seriously affected by short and slander schemes, (the opposite of pump and dump schemes). Most vulnerable to rumor mill are the banks and insurance companies. So much so, the banks are federally insured to some extent and heavily regulated with regards to capital requirements. Insurance companies are also seriously regulated and their books are audited. Tech companies in their cash burn phase are very vulnerable to bad news and rumors.
Tesla assumed the bond obligations of Solar City. Lots of people thought it has bitten a piece too big chew, and too big swallow and too stuck to spit out. So they hoped to cut Tesla's access to capital, make a killing, and probably pick the pieces at fire sale prices. That bet seems to have gone wrong.
Solar City bonds have hurt Tesla, but did not kill it.
Also true, he did not.
But what he did deliver, 50K car 1 year ago is still a stunning achievement far beyond anything the traditional car companies managed to do so far.
There are some exciting announcements from them. There are some exciting products from them. Jaguar I-Pace, Hyundai Kona... Whether they beat Tesla, or they coexist with Tesla, or they reduce Tesla to be some boutique vendor of strange electric cars, Auto world has been shaken thoroughly to the core.
A very traditional Indian would start disavowing worldly pleasures and lose the "attachments or bonds" with the material, the mundane, the carnal self and prepare to connect with the spiritual universe, typically starting from age 60.
There is no real evidence he is that traditional, but such world view is very common in India, especially among the Brahmin castes. (Again no evidence that he is a twice born).
H1B is a good way to make sure we take the best, not the rejects from the old world.
Market will anticipate it, index funds would have buy some 6 billion in TSLA stock. And steady purchase thereafter. But it is not something that trigger any kind of short squeeze of any kind.
Already big smart shorts have closed their positions. 41 million TSLA shares were shorted in Jun 2018. Now the number is around 24 million. Still high, but the trend is down. Two more months it might not be the most heavily shorted stock in the market.
Elon is surprisingly well behaved. If his demeanor is any indication, the company is doing very well.
Pretty soon it will get the government to pass a law to make it illegal to access databases without password. Then it will display a warning saying it is illegal to access this data base. And then wash its hands off saying, "we can't be held responsible for the criminal actions of the miscreants. Affected parties are advised to file complaints against the trespassers with the appropriate authorities who would do the needful". Then they will go return to status quo ante.
When you type in download chrome on the IE it prompts, "Did you mean Edge Browser download? Please please pretty please with a bow on try the Edge. If you search using Bing we will give you money too. And please give Cortana a chance. A chance that is all we beg for. "
Nothing to show what are clickable and what are not. There is no shortage of screen real estate, still the site comes with minimal info on huge fonts.
It is so easy to take over western institutions, amateur Russians are doing it for free on their spare time. Russian hackers are worried if their bosses knew their pay will be drastically cut.
Curiously, he is behind 80% of the postings and 80% of his postings are about his behind.
Every mile of a gas car comes from the gas station. 90% of the electric miles come from an outlet in the garage from overnight charging. So these charging stations will dispense typically ten times fewer miles compared to day. Electric miles are four times cheaper than gas miles. So the revenue of these charging stations will be 1/40 th of present day gas station revenue.
Now there are 120,000 gas stations with total revenues of 450 billion dollars. If all of us start driving BEV, these charging stations will pull in collectively 11.5 billion dollars. At less than 0.1% marketshare, the total revenue of these chargers is around 11 million a year. The equipment needed is very expensive, Bolt charges at 50 kW, Teslas at 128 kW and Porches/VW are talking about 350 kW (800V systems). The transformers needed, and the heavy draw power equipment etc are expensive compared to simple pumps and underground tanks. The revenue just not justify the capital needed.
Independent charging stations, like gas stations, are not economically viable, it looks like. Utilities might build them at a loss, so that they can sell more electricity in garages and overnight charging. Car makers might build these networks at a loss. Governments might build it with subsidy to fight climate change. Companies might be forced to build these as a punishment for other wrong doing, (VW is building these stations under a consent decree for the dieselgate scandal). If BEV market share reaches some threshold street part
After the changes take effect, a Facebook user could send an encrypted message to someone who has only a WhatsApp account, for example. Currently, that isn't possible because the apps are separate
Already my WhatsApp is being swamped with spam and forwards. There is no threading mechanism, no clear idea of what message is responding to whom. There is no way scroll past things I am not interested in. Pretty soon signal to noise degrades so much users resort to wholesale "delete all unread messages". I hate that damned thing.
But so many of the groups I am interested in insist on using WhatsApp. Easy, convenient, at hand. A typical alumni group of about 100 people have 10 people responsible for 90% of the postings. 10 more read those posts. The rest delete all messages blindly.
Now you allow Facebook users to spam the WhatsApp account. The already poor signal/noise ratio will degrade even further. I am hoping this finally kill WhatsApp for good and something better might emerge to take its place. Need the convenience and easy access, but some sort of threadable interface, some sort of AI learning who reads messages from whom and automatically group messages as "likely to be read" "likely to be skipped" ...
The Magna Carta itself is translated as The Great Charter and is referred to as Maha Word_for_Charter_in_IndianLanguages. It is possible I was confused and conflated the two. I never studied European history formally in English.
Really? In my high school text book he is referred to as Maha John, meaning John the Great. (Maha is a prefix in Indic languages meaning Great. )
I guess you didn't go to an Ivy League school or never worked with someone who went to one. I didn't go to one but nearly every person I've worked with who has gone to one has been extremely bright and hard working
I am an IIT grad myself. The Ivy Leaguers I work with admire me. Of course, the respect is mutual, because the legacy quota Ivy Leaguers would not deign to rub shoulders with working stiffs like us. Even if they did they would not even grasp half of what we talk about.
For every minority grad dissed as an affirmative action baby, there is a legacy admission living on reflected glory.
In fact the Jews' lunch is being eaten away by the Indians. Old Money in USA was WASPs, Jews were the merit candidates, getting a degree and a ticket to ulcer inducing tense long hour financial industry jobs. The Indian immigrants since 1990s are giving a good run for the money for the Jews. Have you seen any spelling bees lately? Indians in Ivy Leagues typically score 150 points in SAT over other groups. No matter what holistic assessment crap the admission officers come up with, the Indians beat them and get in. It is so difficult to keep the Indians out, they are scrapping SAT scores, ACT scores and are going for totally subjective admission criterion.
The real losers in this arms race and battle are the merit WASPs. After old money WASPs take their fill, and Jews and Indians and Chinese take a bite out of merit quota, and minorities take their quota, there is very little left for the old fashioned meritorious upper middle class studious WASPs.
I ran the rat race in India, and won, got through JEE, got into IIT, got to USA and was hoping I ran the rat race, at least my daughter does not have to. Sadly mistaken. Along with me came a million Indians, all who had run the rat race and they brought the rat race with them. Winning a rat race is all they know. They dont realize even if you win a rat race, you are still a rat. A typical fly-over country WASP with decent education has no chance, does not know what hit him. Kumon, math lesson at age 2, multiplication tables memorised by age 4, local spelling bee geography bee champs by age 6, next year academic work completed in private summer classes, all year left to game the holistic admission criterion....
Back in 1000s a bunch of aristocrats joined together and bargained for their rights and made John The Great sign Magna Carta. Its significance is limiting the power of the Monarch. Then the aristocrats ruled the country with their fiefdoms. Only they would get to be inducted into the Officer Corps of the army and all the teeming masses were consigned to "Other ranks" aka cannon fodder.
Renaissance, industrial revolution, the rise of mercantilism, colonialism all gave rise to new classes of wealthy people and they were inducted into the power structure by doling out aristocratic titles etc.
But the teeming masses, unseemly ungrateful bunch, made a power play and grabbed the hard won rights of the aristocrats for every one, suddenly the Old Money is on the back foot. They removed the power of the House of Lords, and The Commons had all the power, the Monarch a mere titular head, hereditary aristocratic titles have no meaning, the Heir to the Holy Roman Empire, Her Most Serene Princess someononeortheother is working for a wage in Economist or Tribune, ...
The remnants of inducting only the aristocrats for the Officer Corps of the armed forces, merchant marine, and Civil Service morphed into "Degrees from Top Universities". Eton and such schools in Britain, Ivy League in USA, where there is a significant quota for the Old Money in the form of Legacies. About 50% on merit, 25% for the minorities, 25% of the Old Money Legacies seems to be the current quota system. Once these degrees are awarded, the graduates with connections get on to the fast track and get very rewarding very light duty sinecures, risk free jobs sitting on boards and VP of Beer Analysis or Executive Vice President of Trivial things. The graduates with merit end up with ulcer creating tense difficult, but well rewarded careers. The token minorities with degrees from top school, their prospects depend on cultivating/developing connections with the other groups. The degree alone does nothing for the minority graduates.