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The presence of an SEC investigation is cause for concern. But why not just say that? Why repeat absurd rumors about billion dollar investor lawsuits? What does

by dnomad 8y ago

The presence of an SEC investigation is cause for concern. But why not just say that? Why repeat absurd rumors about billion dollar investor lawsuits? What does it gain you to spread, by your own admission, completely baseless rumors? I keep thinking HN is not the place for this sort of nonsense but then maybe I'm the one in the wrong. Certainly most discussions about Musk here are not based on any kind of rational analysis of the facts. Yours is the popular position, if a bit wearisome.

enraged_camel 8y ago
>>Why repeat absurd rumors about billion dollar investor lawsuits? You misunderstand. The calculation is not about a single lawsuit costing billions. It's about potential damages from ALL possible lawsuits from pissed off short-sellers. And that's not absurd at all - it's a real possibility, since Tesla stock is one of the most popular on the stock market.
- kgwgk 8y ago
  Not only from short-sellers. Many people bought TSLA at $380 because, you know, funding secured.
  - thewizardofaus 8y ago
    Many people shorted TSLA at $380 because, you know, easy money
    - kgwgk 8y ago
      I don’t think those can sue for damages :-)
- compcoffee 8y ago
  >It's about potential damages from ALL possible lawsuits from pissed off short-sellers. What happens if you bought calls for a price higher than $420? They are worthless. You don't have to be a short-seller to have been burned by this.
  - dragontamer 8y ago
    > What happens if you bought calls for a price higher than $420? They are worthless. To be fair, they always were worthless at best, the company would be bought at $420 (and no higher). ------- I think you mean "bought calls at strike price $400" (leaving ~$20 buffer before the presumed buyout price). If Tesla were bought at $420, then calls at strike $400 would be worth $20 each. Of course, as the $420 buyout price is falling apart, a call@400 is looking pretty worthless right now.

by dnomad 8y ago

enraged_camel 8y ago

>>Why repeat absurd rumors about billion dollar investor lawsuits? You misunderstand. The calculation is not about a single lawsuit costing billions. It's about potential damages from ALL possible lawsuits from pissed off short-sellers. And that's not absurd at all - it's a real possibility, since Tesla stock is one of the most popular on the stock market.

kgwgk 8y ago
Not only from short-sellers. Many people bought TSLA at $380 because, you know, funding secured.
- thewizardofaus 8y ago
  Many people shorted TSLA at $380 because, you know, easy money
  - kgwgk 8y ago
    I don’t think those can sue for damages :-)
compcoffee 8y ago
>It's about potential damages from ALL possible lawsuits from pissed off short-sellers. What happens if you bought calls for a price higher than $420? They are worthless. You don't have to be a short-seller to have been burned by this.
- dragontamer 8y ago
  > What happens if you bought calls for a price higher than $420? They are worthless. To be fair, they always were worthless at best, the company would be bought at $420 (and no higher). ------- I think you mean "bought calls at strike price $400" (leaving ~$20 buffer before the presumed buyout price). If Tesla were bought at $420, then calls at strike $400 would be worth $20 each. Of course, as the $420 buyout price is falling apart, a call@400 is looking pretty worthless right now.