Tesla

[russ]

Fresh off its first profitable quarter, Tesla Motors Inc. plans to raise about $830 million in a stock and debt offering that will enable the electric car maker to pay off its $465-million federal loan.

http://www.intelligentutility.com/ar...riginal-Member

[SunEagle]

Fresh off its first profitable quarter, Tesla Motors Inc. plans to raise about $830 million in a stock and debt offering that will enable the electric car maker to pay off its $465-million federal loan.

http://www.intelligentutility.com/ar...riginal-Member

That it pretty nice to get out from under a Government loan. Hope they are successful and stay solvent. Even though their cars are outside my price range now I will certainly keep my eye on them.

[Sunking]

That it pretty nice to get out from under a Government loan.

They are not out of the loan. Tesla cooked the books. True they showed $562M sales and $11M profit the first time in ten years. But that $562 was not all in sales, and half of it not real money. Tesla wrote off a Warrant on their loan and a FX currency sell off on the Yen which neither is repeatable. It is a ploy to try to force the Shorts who own 50% of the company stock to sell and take a loss. The SHORTS did not buy the story because they know how to read quarterly report and know what Tesla did. Wait until the end of Q2 and Q3 and see what happens when notes come due. That is the part the BLOGS and media is not talking about.

[SunEagle]

They are not out of the loan. Tesla cooked the books. True they showed $562M sales and $11M profit the first time in ten years. But that $562 was not all in sales, and half of it not real money. Tesla wrote off a Warrant on their loan and a FX currency sell off on the Yen which neither is repeatable. It is a ploy to try to force the Shorts who own 50% of the company stock to sell and take a loss. The SHORTS did not buy the story because they know how to read quarterly report and know what Tesla did. Wait until the end of Q2 and Q3 and see what happens when notes come due. That is the part the BLOGS and media is not talking about.

Dang. You can't believe any news report anymore. Hopefully their sales goes up but their EV cars are too expensive for me.

[Ian S]

Dang. You can't believe any news report anymore. Hopefully their sales goes up but their EV cars are too expensive for me.

They are expensive but are also competing head-on with various higher end Mercedes, BMW, Lexus and Audi among others. The elite are doing very well and have plenty of money to spend on such expensive baubles. No one needs a BMW 7 series but it has a certain cachet and impresses people which is what these luxury cars are all about. The Tesla S is a great competitor in that group - performance, looks, and degree of luxury - and adds the all-electric feature that is unique to it among its peers. Tesla will sell a mint load of them and probably make a profit at it. Actually I hope they do because then their plan is to make a more affordable version that folks like you and I can afford.

[Ian S]

They are not out of the loan. Tesla cooked the books. True they showed $562M sales and $11M profit the first time in ten years. But that $562 was not all in sales, and half of it not real money. Tesla wrote off a Warrant on their loan and a FX currency sell off on the Yen which neither is repeatable. It is a ploy to try to force the Shorts who own 50% of the company stock to sell and take a loss. The SHORTS did not buy the story because they know how to read quarterly report and know what Tesla did. Wait until the end of Q2 and Q3 and see what happens when notes come due. That is the part the BLOGS and media is not talking about.

You sound like one of those shorts LOL! With Consumer Reports joining the bandwagon I think the shorts are going to be sweating profusely over the next few months:

The Tesla Model S, built by a small automaker based in Palo Alto, Calif., is not only the best electric car we've tested, it's now our top-rated model overall. This luxury sports car is brimming with innovation and delivers world-class performance. It provides razor-sharp handling, catapult-like acceleration, and excellent braking. The Tesla also rides comfortably, seats five adults plus two kids in an optional third-row seat, gets the equivalent of 84 mpg, and is one of the quietest cars we've ever driven.

Importantly in my view, the Tesla appears to be very well put together:

We found only a few minor fit and construction problems, which is impressive for a wholly new product from essentially a start-up company.

I think that sets it apart from the other startup automotive manufacturing wannabes we've seen over the years. I've actually been skeptical of the Tesla and have worried about its potential for range anxiety and fly-by-night construction but have changed my opinion. At this point both the stock and car are too high-priced for me but I'll be watching them closely from now on.

[bonaire]

How do the shorts own the company... They sold other people's shares and own nothing. They are forced to buy shares to cover before they lose long term. Some shorts must pay high loan percentages to borrow shares to sell short. I'm surprised Sunking didn't mention the millions received in selling the ZEV credits which only apply to USA sales and not up coming euro sale. I made good money on the short squeeze thanks to the ramp up,the hedge funds had to react with after quarterly results were posted.

TSLA isn't looking the books, everything is out in the open. But they have income that may drop for the ZEVs and maybe a slowing of reservations. It sure is a battle in the market now with the secondary offing priced over $92.

[Sunking]

How do the shorts own the company... They sold other people's shares and own nothing. They are forced to buy shares to cover before they lose long term.

That is not how it works. Shorts borrow the shares for a term or period of time from a Broker or the Company. The Broker or Company credits your account at the current stock price. At the end or before the term they buyer has to close the account to cover and terminate the deal. If the price drops below what was borrowed against you make a profit. If the stock goes up you have to make up the difference and take a loss. As to whether there are interest charges depends on the client and the type of account they hold with their broker. Those with good credit only pay a commission for the transaction.

As of April 30, 2013 Shorts have possession of 44.10% of TSLA Look for yourself at Short % of Float (as of Apr 30, 2013). One key Stat is the book value of the company share price which right now is $1.46/share which means if Tesla Closed today the company is worth only $169 M. That means with a market cap of $10.5 B the book to price ratio is 63.01 which is a far cry from 1. The company is deep in debt and highly unlikey they will show a profit in Q2. They had to write down debt and trade currency to show profit in Q1 which they cannot do again.

What the company did is cook the books to make the Shorts nervous and try to force them to cover their losses. The shorts did not believe it because they know what Tesla did to show a profit. They will wait until Q2 results to come out showing a loss sending the stock crashing down. When that happens they will cover and wipe them out.

Shorts (bears) are the counter balance or self correcting to the longs (Bulls) and keeps the market honest. When one side cheats, the other takes their money away.

[Ian S]

How do the shorts own the company... They sold other people's shares and own nothing.

You are exactly right. Those who short a stock borrow the shares which are then sold on the open market: they don't "own" the stock or the company nor do they have any voting rights. The "short interest" percentage is just a measure of how many folks think the stock is going to drop in value and have put their money where their mouth is. Those who shorted the stock a couple of months back when it was up in the 30's are really sweating bullets now. I don't blame them for trying to badmouth the stock by saying things like they're cooking the books but such claims of dishonesty could be grounds for a defamation lawsuit by the company against the individual.

[catechnologies]

tesla legend.

Fresh off its first profitable quarter, Tesla Motors Inc. plans to raise about $830 million in a stock and debt offering that will enable the electric car maker to pay off its $465-million federal loan.

http://www.intelligentutility.com/ar...riginal-Member

It is amazing that tesla is popular in China overnight. It seems that you are out if you don't know it, proven you work in IT industry.