A suspicious mind could also suspect that it is an attempt to limit availability of additional shares on the open market, preventing existing short sellers from covering their positions en masse. Musk said something to this effect during the previous capital raise.
Tesla has a ~30% short interest, which contributes to the ridiculous volatility of the stock.
> Tesla has a ~30% short interest, which contributes to the ridiculous volatility of the stock.
As a TSLA investor who owns several thousand shares, is there any way I can take advantage of this? I'm always looking for a way to generate more cash to acquire more TSLA.
They're at TD Ameritrade in an institutional account managed by an automated Y Combinator investment firm. How do you determine which brokerage firms lend shares out for shorts?
not to derail your interesting question (which I also want to know the answer to), but I'm super curious about that account: managed by an automated y combinator investment firm? can you elaborate on what that means?
I put cash into our (mine and my wife's) retirement accounts every month, they auto-rebalance it to optimize returns and tax savings.
They have the ability to lock securities in your accounts so their algorithm doesn't touch them, but I asked them to move my TSLA stock to distinct IRA/ROTH IRA accounts just to be safe.
The limit effect is temporary isn't it? Though Tesla could fulfill the note by repayment in cash, I would suspect that by 2019/21, even if they execute perfectly on their plans, the company is still going to prefer to keep cash in hand and repay in stock. Wouldn't that increase short interest in a time window in front of the 2019/21 due dates?
