Comments by "Terje Oseberg" (@terjeoseberg990) on "Elon Musk just sent all of Wall Street into a frenzy with one tweet" video.

  1. From 0:04 to 0:18 and from 1:21 to 1:36 there's a flat horizontal line from around 2pm to 3:30 or 3:45pm. Presumably this is when trading was halted. But later they show the stock price and this flat horizontal line is gone. Why? Was trading halted? When was it halted and when was it resumed? And why two different graphs?
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  2. Starting at 4:32 the flat horizontal line is completely gone. Why?
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  3. I'm searching everywhere to figure out what happens to the short sellers if Tesla goes private. I can't find anything. All I can find is when companies get delisted due to bankruptcy. Obviously if the company goes bankrupt, the short sellers win. But, what about when the company goes private without going bankrupt? Also, what happens to those who are long and those who are short Tesla options (puts and calls)?
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  4. Big Dream, So you're saying that since those who lent the stocks will be forced to sell them, they will be forced to demand them back from the short sellers? And thus the short seller will be forced to buy them back in order to provide them? How about this? Since about 20% of Tesla shares have been shorted, there are 20% more shares owned than shares exist. If nobody wants to sell, how can Tesla allow everyone to maintain their ownership in the company?
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  5. I'm actually pretty sure that the price will go substantially above $420. The reason is the short squeeze. Right now the price is around $350 because people believe there's maybe a 25% chance the company will go private. As soon as there's a 100% chance, the stock will instantly be worth $420 at some predetermined future date. Let's say that date is 6 months from now. Well, nobody would be willing to invest $420 in order to get $420 in 6 months. That would be crazy. So, the current price will be somewhat below $420. If it's too much below, people will be willing to buy in order to receive a guaranteed return. Not enough below and people will be willing to sell because there's not enough of a return. As the date approaches, the price will move closer and closer to the $420 target. Now, the problem is, this is all based on there being no short sellers. So, now the short sellers will see this and they'll be absolutely certain that every day they wait, they'll lose more money on their position. This will motivate them to buy back as soon as possible. Given that there are 35 million shorted shares that need to be bought, they're all going to be competing to buy back their shares at the same time. So, then what happens when everyone has agreed to the $420 price and now the price is $450? BTW, the average volume is about 10 million shares per day. I'm not sure what that means. 10 million average volume to 35 million shorted shares. It seems that this ratio should determine the potential rise in stock price in the event of a short squeeze.
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