Ya it definitely sucks, awesome to see the SEC reward fraud with new capital

This doesn't seem like all that much money for them. Is the concern that they can just raise again in Q4?

nice jinx

Well, the theory was they couldn't raise because he should have done so already - when the stock was much higher.

But such is life. I said from day 1 that I would cover on a cap raise because even though I think the business is awful, it proves they can kick the can as long as needed.

I've been short 2-4k shares avg price over $300, so not the worst trade in the world.

Lol @ this tweet

“The first thing they teach you in business school is that the best time to raise money is when your business has rolled over and you desperately need it.”

best time to raise is when your stock is at a multi-year low. everybody knows that.

i'm not sure waiting for it to go lower while having ~zero cash would have been a better idea

obviously meaning he should have raised at 300$+ when all the smart people (bears) were asking why he doesn't.

That was obviously so boneheaded it gave credibility to the "he's not raising because he can't" thesis. Turns out he's just a bonehead?

Took a quarter of my position off at 243.4

Letting the rest run. If it gets close to breakeven over next few days may just flatten but right now looks good.

Nobody cares what you're doing with your quarter positions

U jelly babe?

i'm happy for you man. you can probably afford to supersize your mcdonald's meal today

I wonder how low your self confidence has to be to get mad about someone having a winning trade on the internet? Has to be close to zero.

I'm guessing you live in a terrible headspace.

The chances of Tom's wife letting him spend his allowance on Tesla shares is 0.

Closed out everything but some of my 6/2020+ puts

Three legs of the bear thesis from last year:

1. Early 2019 demand death/unprofitability. Can't sell enough cars at profitable levels and can't make cars for larger volume price points at anywhere near profitability. [This came true and tanked the stock to two year lows at $240].

2. Probably (>50%) can't raise. It makes no sense that Musk had failed to raise - he's either deliberately hurting his company by not raising (spending dived on capex and services/SG&A just as they ramped, leading to horrible service, unavailable parts, refund delays, and the brand ranking tanking 35 places in a year, also hurting demand) OR he's a total dickhead OR there's MNPI they want to keep hidden. [We have our answer - he's a total dickhead, although the story isn't played out yet and they may need to disclose more]

3. Tesla are highly incompetent with a toxic culture at anything other than making the bottom half of the car. Long term, Tesla needs $100 billion+ in new inflowing capital to survive, against fierce competition who can crush them in price:feature ratio at the lower end that Musk needs to grow. [We already saw a bit of the "long term" arrive as iPace helped destroy S/X sales in Europe, down over 50% even after huge price cuts and part of a $700 million loss]

Solid bear thesis, played out solidly. I see no reason why 1 and 3 won't continue. (2) was a highly rational probabilistic thesis but for the fact that it relied on Musk not being a dickhead (he clearly is).

Tesla filed a prospectus, but doesn't it need to be approved by the SEC before they can actually raise any money?

Partly surprised there's been no short squeeze

On the other hand, they burned 900M in Q1 without the one time tax credits. This is 2 billion, so with capital on hand plus this that puts them through end of year before they need more money. Not exactly saving the company and doesn't come close to justifying the valuation.

I closed my full short position too.. will re-evaluate as we get more details. I'm also surprised there wasn't a larger squeeze. Were most of the shorts already out?

Already past daily average volume. $2.5 billion so far. I wonder who's mass selling on this news.

closed all 2019 puts

still a bear but should admit to myself i have no idea on the timing of anything. april deliveries seem just as bad as jan/feb. is anything going to happen when ppl realize that a) april is not the "best first month of any quarter ever" or whatever was said on the call; or b) 90k+ deliveries in q2 is extremely unlikely/borderline impossible?

edit: still have 1/2020 and 6/2020 puts

Whisper is that the price announced tonight will be $237, good analysis here:

Also interesting:

This doesn't hurt the short thesis. Feeding a cash incinerator more fuel doesn't extinguish the flames. It just kills the short term bankruptcy thesis. We'll see how much more they can raise going into 2020 when they're already lighting ~$1B per quarter on fire and it turns out Model 3 XL (aka Model Y) fails to sell too.

The fact that you were so wrong about (2) should give folks some pause as to what else you might be wrong about.