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by prolly_a_moron 3366 days ago
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.

2 comments

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.
>This was not a capital raise. Read the filing.

I don't need to read a filing to know that when you create shares out of nowhere, and sell them, diluting current shareholders, it's a capital raise. What else would you call it?

Do you understand that's not what happens when shares are acquired on the open market?
>Do you understand that's not what happens when shares are acquired on the open market?

Do you understand that Tencent bought shares in a secondary offering? Apparently you do, you said it. Not sure what you're arguing. Do you understand the purpose of selling shares is to raise money for operations?

Maybe I'm misunderstanding. Your comments suggest to me that you think there was yet another secondary offering associated with this news.

> The 8,167,544 shares of Issuer common stock were acquired by the reporting persons in a registered offering of common stock by the Issuer on March 17, 2017 and through open market purchases, for an aggregate purchase price of $1,777,842,836 (including commission).

That means Tencent acquired its position at an average price of $217 / share. The March 17 secondary was priced at $255 / share. Algebra tells us that > 98% of Tencent's position was acquired on the open market and the rest via the March 17 offering.

>Tencent's position was acquired on the open market and the rest via the March 17 offering.

Editing because I think we were talking past each other. Yes, I didn't mean this specific event. I tend to meld all these TSLA threads together in my mind.

Who says the capital raise is a 'wide open positive'? As someone long TSLA I'm not ecstatic. But short of selling my stock, how else can I signal?
>Who says the capital raise is a 'wide open positive'?

The guy at the top of this thread who said "Shorts can't buy a break".

It's at least arguable that these sorts of capital raises are exactly what the shorts are looking for.