August 27th, 2020

I fully expect some dilution. This 4% drop in 20 minutes could signal a dilution. I am of the opinion that S&P has told Tesla they will be included, requested dilutions of shares to free up shares for purchasing. I assume Tesla has agreed and this is the second of three dilutions in the near term.

You can see the first dip on Aug 24 where I expect it was a 3% dilution.

The initial 3% dilution would have raised ~$11B and the second dilution would have raised an additional ~$16B.

A 7% dilution seems to be a weird #. More likely I think we have seen 2 of 3 dilutions and we can expect a third 3% dilution which will raise another ~$12B in total giving Tesla +~$40B on their balance sheet.

FYI, this could all be my imagination.

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ABOUT THE AUTHOR:
I am TSLA Long. Model 3 Owner. Brother of a Model 3 owner. Son of a Model S owner. I have reservations for Slate Roof and Cybertruck. I am a Tesla speculator and fanboy. I am not a financial advisor. Investing in anything comes with inherent risk. Short NKLA (Aug 4 2020)