INVESTOR ALERT: Levi & Korsinsky, LLP Reminds Investors of an Investigation Involving Possible Securities Fraud Violations by the Board of Directors of Tesla, Inc. October 16, 2017 11:01 AM Eastern Daylight Time NEW YORK--(BUSINESS WIRE)--Levi & Korsinsky announces it has commenced an investigation of Tesla, Inc. (“Tesla” or the “Company”) (NASDAQ: TSLA) concerning possible violations of federal securities laws. On October 2, 2017, Tesla filed a Form 8-K with the U.S. Securities Exchange Commission citing “production bottlenecks” as the reason it failed to meet its production goals for its Model 3 sedan. On October 6, 2017, the Wall Street Journal published an article reporting, in part, that “unknown to analysts, investors and the hundreds of thousands of customers who signed up to buy it, as recently as early September major portions of the Model 3 were still being banged out by hand, away from the automated production line….” To obtain additional information, go to: http://www.zlkdocs.com/TSLA-Info-Request-Form-6148 or contact Joseph E. Levi, Esq. either via email at jlevi@levikorsinsky.com or by telephone at (212) 363-7500, toll-free: (877) 363-5972. Levi & Korsinsky is a national firm with offices in New York, California, Connecticut and Washington D.C. The firm’s attorneys have extensive expertise in prosecuting securities litigation involving financial fraud, representing investors throughout the nation in securities and shareholder lawsuits. Attorney advertising. Prior results do not guarantee similar outcomes.
They should be sued to hell just for the SCTY acquisition. From my fav SA contributor, Montana Sceptic: "My personal view was that the real motivations for the merger were: to assure that SpaceX would be repaid its $165 million in Solar Bonds; to assure the SolarCity insiders would have their worthless SCTY stock options converted to valuable TSLA stock options, and (less importantly in view of the dollars at stake) to assure that Musk and the Rive brothers would receive payment for their Solar Bonds. The merger changed only one thing: the shareholder arrangement. All former SolarCity shareholders became Tesla shareholders, and Tesla became the sole SolarCity shareholder."
SCTY owns 100 mill to Elon and the cousins, due in next February. Wait for the SCTY bankruptcy right after that. (and probably another capital raise before that) SCTY actually can go down without bringing TSLA with it, their debt is completely separated from Tesla. Now Elon himself said he would personally pay that debt, but we know that lie was needed to get all the merger votes... I think the safest play against TSLA is selling vertical calls 40-50 bucks higher than the current price.
OK, Dec 395/405 call spread (with TSLA at 354) sells for 1.90 (legs 7.60, 5.70). So you're risking ~$8 (if TSLA blows thru) to make ~$2. Whether that's a good deal or not is a matter of taste.
The January is better a bit better at $2.65. I guess I was thinking of Iron Condor not the verticals, with the 1:1 R/R. But this thread is about being bearish on the stock so one has to take chances if one wants to bet directional. If bearish on the stock I wouldn't sell the puts...
Just when we thought Elon was running low on spin... This should be good for a nice bump tomorrow. --------------------------------------- Tesla Strikes Deal With Shanghai to Build Factory in China https://www.wsj.com/articles/tesla-strikes-deal-with-shanghai-to-build-factory-in-china-1508670181 Plenty of other links if you can't get by the paywall.