I am bearish on TSLA, It is one of those Glamour stocks that people fight to buy whatever shares at whatever price it sells, even if the company has poor prospects.
Imagine a company with only 1 single car (remember they only sold about 1000 of them) one form of revenue, no profits what so ever and having a market cap above $1 Billion dollars starting tomorrow!!!! Oh and remember if it were not for the nearly Half a BILLLLLLLION they received there would have never been an ipo tomorrow or even a 1000+ cars sold, take away the those dollars and the company would have probably folded months and months ago. Anyone buying into this hype better get ready, its fucking unbelievable how much this company, with absolutely nothing, is worth over a billion dollars.
All the hype is plenty of reason to buy it in the first few mins of the day and hold till the close. No short selling allowed too. I believe we might get very similar action to AONE when it debuted last september. My prediction is that it will close quite a bit higher on the first day. Anyone know if it will trade in the nasdaq premarket tomorrow? Or does it start only in regular session at 9:30 et.
No PRE market tomorrow, its an IPO, IPOS usually open for trade after the market opens an hour or 2 later. You will not be able to buy this premarket.
It's possible that TSLA can turn profitable in the years down the track. A more likely scenario is that it needs to raise additional capital (and/or additional government loans). It probably won't be available to short for a while, but I do note that recent IPO Nasdaq:CBOE was optionable after only 9 calendar days: http://www.optionsclearing.com/market-data/series/new-listings/ Some good articles pointing out what a turkey the company is: http://money.cnn.com/2010/06/28/technology/tesla_ipo/ http://www.marketwatch.com/story/tesla-motors-revs-up-244-million-ipo-2010-06-28 http://www.cnbc.com/id/37974851 And market cap information: http://www.reuters.com/article/idUSTRE65R2B620100628 "The IPO represents about 14 percent of the company, excluding additional shares the underwriters have an option on. At $15 a share, Tesla would have a market capitalization of $1.4 billion."
Today looks like a bad day for the IPO with the big market crash tuesday. I want to buy puts but I wonder how long before the options appear. Also Elon Musk seems of a shady type. 200K monthly expense, guy is somehow broke yet still has to spend 200K Lots of financial issues. Plenty of incentive for all kinds of shadyness with the stock.
It may have a hard day today, with the down market. I doubt it'll sell of much, probably move up, based on the hope and hype of its products.
IPO Notice: The initial public offering of Tesla Motors, Inc. (TSLA) will be released on NASDAQ today for quotation at 11:05 ET and trading at approximately 11:20. Please call 877-308-0523 if you have any questions. Reminder: Trading prohibited during quote-only period of IPOs. Please refer to the link for additional system status updates. http://www.nasdaqtrader.com/Trader.aspx?id=MarketSystemStatus