Hey everybody Rob Maower here and today we are talking about Tesla's possible equity distribution.

A lot of people have been calling it a capital raise today

and it may very well be, but we'll go into the details on that.

Also, the implications that that may have for S&P 500 inclusion,

and just a quick update on how that looks after the stock split.

And then we have a bit of news on Model Y out of Shanghai as well.

So Tesla stock on the news today was down 4.7% to $475.5 but a pretty steep drop from the

after hours trading yesterday and the pre-market trading today where Tesla

actually peaked around $540 per share. Still though, even with that drop today, Tesla still up post- Split.

Remember the split happened around $442 per share.

I've gotten a lot of questions on why it would drop today.

I never know. You know, you can't know for sure,

but it did drop on the news of the potential capital raise, which will obviously go into more detail on here,

but many brokerages have seemed to have some issues

with handling the stock split, which has made in some cases trading unavailable for some people.

So there may have been a decent amount of shares locked up yesterday.

Seems like a significant amount of that has been freed up today, so many of those people in those

circumstances may have decided to take some profit off the table after the run that we've

seen the last even couple of weeks.

There's been some theorizing around the internet

that maybe some of those brokerage issues were caused by naked short selling,

which essentially means you're selling a share short

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