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0 pointsprolly_a_moron9y ago0 comments

>Do you understand that's not what happens when shares are acquired on the open market?

Do you understand that Tencent bought shares in a secondary offering? Apparently you do, you said it. Not sure what you're arguing. Do you understand the purpose of selling shares is to raise money for operations?

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danhak9y ago

Maybe I'm misunderstanding. Your comments suggest to me that you think there was yet another secondary offering associated with this news.

> The 8,167,544 shares of Issuer common stock were acquired by the reporting persons in a registered offering of common stock by the Issuer on March 17, 2017 and through open market purchases, for an aggregate purchase price of $1,777,842,836 (including commission).

That means Tencent acquired its position at an average price of $217 / share. The March 17 secondary was priced at $255 / share. Algebra tells us that > 98% of Tencent's position was acquired on the open market and the rest via the March 17 offering.

prolly_a_moronOP9y ago

>Tencent's position was acquired on the open market and the rest via the March 17 offering.

Editing because I think we were talking past each other. Yes, I didn't mean this specific event. I tend to meld all these TSLA threads together in my mind.

danhak9y ago

Here's a comment you wrote elsewhere in this thread:

> It's my understanding that this was another offering, so, essentially, Tesla sold 5% to Tencent at an average price of $217 and change. Current shareholders get diluted. Prices go up.

This is entirely incorrect. The only shares Tesla told to Tencent were priced at $255 as part of the March 17 offering, and that only represents < 2% of Tencent's position.

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danhak9y ago

Maybe I'm misunderstanding. Your comments suggest to me that you think there was yet another secondary offering associated with this news.

prolly_a_moronOP9y ago

>Tencent's position was acquired on the open market and the rest via the March 17 offering.

Editing because I think we were talking past each other. Yes, I didn't mean this specific event. I tend to meld all these TSLA threads together in my mind.

danhak9y ago

Here's a comment you wrote elsewhere in this thread:

> It's my understanding that this was another offering, so, essentially, Tesla sold 5% to Tencent at an average price of $217 and change. Current shareholders get diluted. Prices go up.

This is entirely incorrect. The only shares Tesla told to Tencent were priced at $255 as part of the March 17 offering, and that only represents < 2% of Tencent's position.

1 more reply

j / k navigate · click thread line to collapse