But Musk is now going to buy so that is a plus. what a total scam. Again designed to soak up the lock up share sells. This has a mkt cap of 3 billion with 160 mill in sales and will lose 170 million..................All of this news on the week the options expire with huge put sold by the Hedgies. Classic Musk move........the last 25 pts here was because tesla made a profit.....they had to do a secondary-they would of been out of cash by Decedmber-that is why they needed the line of credit. Again, a 30% dillution.....probably wont know the conversion/offer price until after options expire...Cant have Goldman lose money you know........
Nice try, but the convert price will be HIGHER than today's price, not at a discount.
The converts are due in 2018, so consider the convertibles like an "Option-To-Buy" shares in 5 years for, say, an "in-effect-price" of $42.50. A pretty good deal, especially if the note holders think SCTY will be much higher than $42.50 5 years from now.
Plus convert holders get interest payments and their notes are senior, meaning you're in line for asset liquidation before shareholders.
If I were you, cover short now before your broker does for you at $40's.
I wouldn't try to figure out the dilution at this point, I don't think you are bright enough to figure it out.
If you are norm, you wouldn't short hot stock in first place.
How do you get 30% dilution?
Up to $200M convertible notes / $37 per share = 5.4 M shares when converted in the future.
5.4M shares / 75M shares outstanding = 7% dilution.
Plz explain your logic.
Oh you think thats it...watch and learn. This company needs at least 1 billion to survive the next 5 years as they will not make a dime . Musk just finaced this scam for 1 more year. They just said the sales for the second quarter-18 million. The loss for the second quarter -30 million. The issuance and signing of new debt ( LOC and conv) 300 million ......but.....Musk is buying shares..........and the largest profiteer off of green Scam-Goldman-is underwritting it. Wonder who gets left holding the bag if this implodes ? Musk? goldman? or the taxpayer/customer? We know the answer.............