new options are awarded at a strike price. The lower the strike price the more Musk stands to profit from them in the future. In Q1 he cashed in 220 million dollars worth of options and converted them to shares. He paid a little over $6 ( the strike price) , and the share market value was $191 per share at the time he cashed in so he had to pay about 50 million in taxes.
The quarterly report only noted those options given out in Q1 not the ones Musk already owned and cashed in on. I am saying having a low stock price allows Musk to get options locked in at a lower strike price
If the price of the stock goes down he can lock in some new stock based compensation ......................options with a low strike price........................................
In the 10Q for quarter 1, they reported 83 million in stock based compensation.....................was any of that options with a $143 strike price????????
Musk is a genius you know.................... and like PT Barnum, he know how to get people to part with their $
"its about as new to the world as the Motorola 5-watt mobile flip phone"
Motorola 1990's ....Tesla 20 teens ........both leading in their field.....good comparison
Oil the model X has too many problems and you should be happy with lower delivery numbers. If they keep shipping substandard products the company reputation is hurt. Maybe that is why Musk is sleeping on the production line. Some of the inherent design flaws cannot be changed. The safety issues with the double vision through the windshield at night. the reliability of the falcon doors. both issues are permanent problems that will persist. I think the X will be discontinued if Tesla launches the model 3. If there is any sort of credit crisis, Tesla will not survive long enough to launch the 3. Capital raise is of utmost importance to Tesla right now
Thanks for the info Jer............... and well done.
If you are patient there is always something to learn on the forum. tx
I have some 220 puts expiring next Friday, and I am getting close to a double, which is when I usually sell 1/2.........maybe today I get my investment back and next week profits...........I hope you are correct on the price action.
preferred shares at 10% coupon with equal amount of 10 year warrants
Like the BAC and Goldman Saks deal with Warren Buffet..........................................
Wait a minute, Tesla has no earnings ..............how would they pay the interest
I don't think Tesla has much of an option around this lemon but to discontinue it. The windshield distortion is a safety issue. The doors will only get worse as the car ages.
Consumers were not very flattering about the model s reliability problems and the car is getting older so more problems will emerge
By the time the model 3 comes out the X will have dragging the Tesla customer satisfaction stats down
They said they would likely produce 20,000 and 17,000 would be delivered, so that would explain the delta
"In Q2, we expect to produce about 20,000 vehicles, representing a sequential increase of nearly 30%, and will deliver as many of
these cars as we can in Q2, with the rest being delivered in Q3. Due to a large number of vehicles in transit to customers in Europe
and Asia at end of quarter, Q2 deliveries are expected to be approximately 17,000 vehicles. "
"Michael Karpf flew earlier this month to the Tesla Motors factory in Fremont, Calif., to pick up his new Model X electric sport-utility vehicle—known for a 200-plus mile battery range and Tesla CEO Elon Musk's claim that it's "the fastest SUV in history."
The 75-year-old retiree planned to drive it across the country with his wife and son to their home in New Rochelle, N.Y. But the new-car gleam of Karpf’s $138,000 titanium-on-beige Model X P90D faded with a string of problems as soon as he left the factory—delaying his journey.
One of the wildly designed, upswinging “falcon wing” rear doors failed to close, then later didn't sense an overhang and bonked into it, leaving a ding in the door. The driver's door failed to open, except from the inside. The driver’s door window wouldn’t motor down properly, until it dislodged a piece of chrome stripping that was restricting its progress. And, continuing a trend seen with many Model S sedans, the huge infotainment screen in Karpf's SUV has frozen repeatedly.
All these problems required separate visits to the factory in Fremont and service center in Santa Monica, both of which Karpf noted handled the problems quickly and completely.
In addition, there are manufacturing design issues. For example, the Model X’s uniquely curved windshield has resulted in “double vision” distortion of headlights, taillights, and streetlamps at night. The effect is distracting and tiring, and it makes following distances difficult to gauge.
Then there was an AutoPilot self-driving issue that occurred when the road’s shoulder fell away; Karpf's car became confused, requiring Karpf to take command. Lastly, the Model X's heating system was insufficient to keep the SUV warm on a brisk Lake Tahoe evening.
“When you don’t have climate control on, with three people in the car, things can get a bit testy in there,” Karpf says.
Karpf is not alone. Tesla message boards are already swelling with complaints from Model X owners regarding balky doors
So all other car companies have recalled their Takata air bags but Tesla has not recalled its air bags from the same manufacturer?????? How is that building your confidence
It's a car company. I fail to see the reason to get hyped up about landing a rocket on a barge. It has nothing to do with Tesla. Same for the hyperloop.
Tesla makes nice cars and has a brand people like. As good as it is, it is overvalued. The hype has people loosing their heads and emotions rule the decision making. Of course some funds hold shares and make good money selling covered calls and some are short and sell covered puts. Lots of people making money off the emotion quotient ...........
The shorts talk fundamentals and the longs talk future potential................but landing rockets holds no potential for Tesla.
He knows that when you disappoint on actual results you can prop up the share price by making even bolder promises. Look at the history of broken promises, each time replaced by some sort of hype
every read the book "good to great" ? Chapter 4 is ....Confront the brutal facts ( yet never loose faith)
Winson Churchill " there is no worse mistake in public leadership than to hold out false hopes soon to be swept away"
facts are better than dreams
Elon wants to cash in while the getting is good. He is also tired of being a car company CEO. He wants to focus on Mars. Good for humanity to have a back up plan.
The problem is the valuation.......................it is too high to attract a buyer.
As far as apple is concerned they are better off selling their infotainment and autonomous features to all manufacturers. Tesla only has a couple hundred thousand users.......not much value there. Once they have a profitable mass market car they can manufacture and get to the market it is worth more.................but still less than the current valuation.
As far as cutting into Mercedes and Porsche etc...........................they need to get their cars to market before they are a serious threat. They missed their guidance for 100k units end of 2015, they missed their Q1 guidance of 16,000 units they forecast on Feb 10th. They missed their cash flow positive guidance, they were not able to fund growth from cash flow as they repeatedly forecast. Those mistakes do not help them market the company..........loosing key executives is not a great sign either
Why do you say Tesla Motors is not a car manufacturer? They provide free fuel at their supercharger stations to help them sell cars. They buy their batteries from Panasonic, who also sell to other customers.
Their forecasts for future revenue are based on car sales.................................... they are a car company.....tesla Motors is the name and cars is the game. Electric cars, not buses or trains, cars
You are dreaming up some sort of rational for the outrageous valuation ................
(although we consider the dilutive impact to our shareholders when awarding stock-based compensation and value such awards accordingly) .....
Musk's ownership went up 5% and diluted the rest of the shareholders by about 1%.....from your pocket to his