Thoughts on TESLA

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Perhaps he is looking for somebody else to make the decision to force him out. That allows him to be the victim, and not be responsible for any repercussions from his departure. It also gives him an out in the event that his great experiment falls on it's face. "I could have made Tesla everything that I had claimed it would be, but they wouldn't let me do it!"


I did something similar in 4th grade. It didn't turn out well.
 
corn18 said:
Another dip for the zealots to buy. :dance:
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Yeah, pre-market Tesla in in the low 270's. Those who thought the dip to $303 was a buying opportunity must be loading up the truck now at $273. Or maybe wait for Musk to Tweet something else that's just plain downright stupid about the SEC and shorts. :popcorn:

Perhaps if Musk has so much disdain for short sellers he should just focus on improving Tesla and the stock price, put the hard squeeze on shorts. Or perhaps he knows he can't move the price higher and just takes this tactic to "hurt" them, which ironically just further enriches the shorts :facepalm:
 
1 billion and change of debt is coming due for re financing soon. Musk could take on that from his own checkbook.
 
From January to June of this year, Tesla generated revenues of $7.4 billion, but it had an operating loss of $1.7 billion, burning through its cash on hand. It has $2.2 billion left
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So I suspect that it will need another $2-3 billion to finance operations until it reaches break-even and buy out its convertible debt coming due. No matter what they do, this financing round will be expensive! Conversion price is based on recent trading values.
 
Tesla released their safety report yesterday.... so I wanted to see how much the safety factor would save me on insurance.

Interesting, for all the safety features in the Model 3 I did a quick quote on my auto policy. If I replaced my 2017 MKC with the 2018 Model 3 my premium would go up by 16%. Price of my MKC was higher than the Model 3, so strange to see such a high increase in premium.

I also checked price if I just replaced with 2018 MKC, premium would go up 3%, so that tells me there's 13% higher premium for Tesla. So much for improved safety. Or maybe replacement costs are just way out of hand. Dunno.
 
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bobandsherry said:
Interesting, for all the safety features in the Model 3, I just did a quick quote on my auto policy. If I replaced my 2017 MKC with the 2018 Model 3 my premium would go up by 16%. Price of my MKC was higher than the Model 3, so strange to see such a high increase in premium.

I also checked price if I just replaced with 2018 MKC, premium would go up 3%, so that tells me there's 13% higher premium for Tesla. So much for improved safety. Or maybe replacement costs are just way out of hand. Dunno.
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Could be due to repair costs? We've seen some posts about all the specialized components and construction, and how many repairs can't be done at a general body shop. That could drive repairs way up.

Just looked at the opening price - hmmm, not sure Tesla stock could handle any more 'good news'.

-ERD50
 
Down $16 a share so far today. Buy, buy, buy, bye.
 
On one hand, it does seem maybe trivial to focus on day-to-day price moves for those looking at this as a long term investment.

But a 2% pre-market drop that has expanded to a 5% drop later in the day, after the previous drops on a stock with questionable fundamentals is kinda hard to ignore.

-ERD50
 
Yes, but with those huge profit margins, I’m sure they will declare a substantial dividend any day now :facepalm:.
 
ERD50 said:
On one hand, it does seem maybe trivial to focus on day-to-day price moves for those looking at this as a long term investment.

But a 2% pre-market drop that has expanded to a 5% drop later in the day, after the previous drops on a stock with questionable fundamentals is kinda hard to ignore.

-ERD50
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Over 4 years despite all of Tesla's "deliveries on changing the world" the stock price is where it was, interest rates are increasing right as Tesla needs another round of financing, to pretend it will not need financing is an issue. Additionally, with rates up 2-3 percent on a 80,000 investment is not trivial in effecting sales
 
The day to day focus is because somebody claimed they can trade for a pop.

Einhorn said it’s another Lehman. I’m wonder if this is blood in water for the shorts.
 
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ERD50 said:
On one hand, it does seem maybe trivial to focus on day-to-day price moves for those looking at this as a long term investment.

But a 2% pre-market drop that has expanded to a 5% drop later in the day, after the previous drops on a stock with questionable fundamentals is kinda hard to ignore.

-ERD50
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Agree, but when there's "good news" one expects to see some pop in the price. Instead now down 14.5%. I guess if it wasn't for that "good news" Tesla would be trading at under $250 now. Another tweet or two from Elon and it will be trading at the $195 price that JPM set as their target back in August.
 
Good news for Tesla, while stock closed down $20 (7%) today at $261.95, it's the weekend so no chance of dropping now for a couple of days.

Feels like we are getting close to a low-end and ready to see a bounce. Swing traders get ready.
 
Musk talking down the short sellers - why?

Seems to me short sellers would prop up a stock when it takes a dive like this. They would see it as an opportunity to cover their short, and that means an offsetting buy, creating demand for the stock. A cushion against sharp drops. They actually reduce volatility, which should be good for a volatile stock.

Sure, different shorts will want to cover at different points. But the trend should be there for support. Some, rather than waiting to drop to actually profit, might just see a drop as a good place to cover, even if it is just to limit their loss. Holding a short is scary, theoretically an unlimited loss.

-ERD50
 
Most career short sellers I heard of go for bust, otherwise the whole enterprise becomes unprofitable.

Short sellers only boost a stock when it is already going up and margin calls start coming in.
 
Back in 2006 during an annual meeting of Berkshire Hathaway, Buffett said the following:

"There's nothing evil, per se, about — in my view — about selling things short," Buffett said. "Short sellers — the situations in which there have been huge short interests very often — very often have been later revealed to be frauds or semi-frauds," he added.
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Buffett said he was not afraid of his shares getting shorted.

"We have no objection to anybody selling Berkshire short at all," he said. "The more shorts, the better, because they have to buy the stock later on."
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Maybe it is the possibility of fraud that has Musk steamed? Clearly Tesla is nowhere near Berkshire for comparison.
 
I would think the reason the shorts have so much of Elon's focus is because he has poured everything into Tesla and either consciously or unconsciously believes or fears the shorts are correct.

If the shorts are correct then the failing of Tesla is really Elon Musk's failing and he does not, as an egomaniac with a hyper-inflated opinion of himself cannot abide that being a possibility so he strikes far more than he should at short sellers, who he cannot control and who are pointing out he really is not in control either. Which in the end ironically makes him look out of control.
 
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