Has TESLA stock price finished dropping, or how low will it go?

[edyvw]

Actually it is not that complicated, that is why there is drop in stock.
1. He opened his leadership style for everyone to see. There are no more rumors etc. We can all see his erratic behavior.
2. Top people on Twitter that guarded it from Russian, Iranian etc. abuse, like Nada Bakos, left.
3. He paid it WELL over the value. Probably around 20bln. He tried to bail out, couldn’t. Made deals with horrible people bcs. he didn’t have cash.
4. Those people want ROI. He needs to create traffic, so he is pitching it to people who will creat traffic. But that comes at price. Unite Airlines was one of the first to pull out. Why? Bcs. they don’t want their ad to be next to someone who is revising Hitler’s record. Musk can do whatever he wants, it is private company, but so can United.
5. So it comes down to the fact that he got away with too many stuff before. Charge vehicles before they are available? Sure, no problems. Calculate govt. incentives before they are available? Sure. Beta testing? Sure, it is not like it is Boeing MAX. This is several people at time.
He thought he really can do whatever he wants. Problem is, this is different business. It is social media and deals with human behavior. It is different than selling cars. It has huge implications on for example underground movements in not so free countries. He already cut deals with Chinese bcs. he doesn’t want disruption of access to market for his vehicles. So, do you guys in CCP want some data you might be interested regarding protestors in Hong Kong? Sure, why not.

People don’t like that kind of people. Investors don’t like people that become radioactive.

Edit: this is how he does business. This went under the radar. When wR in UKR started he offered Starlink. After he made people dependent on it, he told Pentagon that they have to foot the bill. Like someone in Pentagon said: no one asked him to do anything. He pushed himself into conversation and did what he did. When Ukrainians developed communication dependency on it, he sent bill to American taxpayers.

 

[doublebase]

There’s two trains of thought on this...

One — Tesla is so far ahead of the game in the EV segment that they will dominate with their batteries, charging, infrastructure, innovation, updates, factories, factory ability to change instantly, vision, leadership, Musk.

Two — Others will catch up, it’s not a matter of if, but when. Musk himself, with the acquisition of Twitter will hurt Tesla. It apparently already has. Add the economy into the equation as well...how many people can run out and buy a $100,000 EV right now? And let’s not forget the price of electricity right now...wasn’t that supposed to be the benefit for some in all this? Saving money, not just “saving the environment”? Having the ability to have options as a consumer that will save you money and be a intelligent decision? If you’re not into simply going green, but are interested in saving money on gas...when you’re electric bill is pushing $500/$600/$700 a month, and a new battery costs you thousands, and you already have $20,000-$30,000 MORE initially invested in the “investment”?? You’re going to lose customers. IMO.

Me? I’d dollar cost average into Tesla now, and for the next few years. Despite everything, electric cars will not be going away. It’s just a matter of who will be standing at the end if this. Tesla should still be the leader for a while. A long while. Some of these major car companies that we love so much very well might go under. This whole EV thing has the makings of an extinction event. Some are going to fall. There will be many hiccups along the way on this EV train...can struggling companies handle THAT? I’ve talked to people that work for Ford. I say, wow, saw one of your lightning PU trucks. Looks awesome! They say, they suck. Can’t make it 200 miles on a charge in the cold weather. We’re so far behind. Well, guess what? Some might not survive things like that - as the demand for ICE vehicles goes down - as their factories become obsolete, and need major change. As they can’t acquire battery technology, charging infrastructure. Can’t change/can’t innovate. People will need cars regardless. Who will be left standing? I think Tesla has an opportunity to become something bigger than we think. But who knows? I’d call them a long term buy, with a lot of volatility built in. Dollar cost average while this thing is taking a dip. 10 years from now it may payoff pretty well for you. IMO.

 

[DwightFrye]

Good thing I won't need to tap into my TSLA shares for several more years. If I needed some retirement income now I'd be PO'd and nervous. When I look at the daily closing price I usually utter a four letter word with a few exclamation points but at the moment I'm still way ahead and it's just paper numbers right now.

TSLA's valuation is very much driven by the emotion of investors. Elon's behavior is the reason for that. But I still feel that the stock price will soar again so I'm sitting it out right now.

Too bad TWTR hasn't dropped by 50%. That would provide a good investment opportunity. I have no doubt that Elon will revamp the entire company and its features and make it a money machine. Then he will sell it and use the money to start his molecule transporter company like on Star Trek or something equally crazy.

 

[MaximaGuy]

Elon got handsomely paid by a rigged board over the years - it went all the way to 1T and now rock bottom (all throughout he met the goals set by the board) shouldn't we take back the options handed over on a silver plate.

Something isn't adding up guys...the markets are rigged.

 

[wpod]

Elon got handsomely paid by a rigged board over the years - it went all the way to 1T and now rock bottom (all throughout he met the goals set by the board) shouldn't we take back the options handed over on a silver plate.

Something isn't adding up guys...the markets are rigged.

Everything seems to be rigged.

 

[edyvw]

Elon got handsomely paid by a rigged board over the years - it went all the way to 1T and now rock bottom (all throughout he met the goals set by the board) shouldn't we take back the options handed over on a silver plate.

Something isn't adding up guys...the markets are rigged.

No they are not rigged. They are reacting to what they see. They trust their eyes, not what Musk wants them to see through his.

 

[MaximaGuy]

No they are not rigged. They are reacting to what they see. They trust their eyes, not what Musk wants them to see through his.

Ok. What are they seeing now that wasn't seen in the start of the year. The production numbers are good - there are recalls which each company goes through, then there is sad news off the plant in Shangai but for that what happened for shareholders to get punished. Why was there a run up and now a run down

 

[PimTac]

TSLA's valuation is very much driven by the emotion of investors. Elon's behavior is the reason for that. But I still feel that the stock price will soar again so I'm sitting it out right now.

This is actually a very telling statement.

Investing on emotion in the long run is not a good idea.

 

[MaximaGuy]

Investing on emotion in the long run is not a good idea.

How telling this line is - we are all wrapped up in emotions because there is some smart basstard who goes into low and comes out high. Most individual investors are hung up in this emotional drama - I know of no one who made his millions in the market. If that path was there that path was closed long ago...its a long painful watch for a emotional rollercoaster.

 

[edyvw]

Ok. What are they seeing now that wasn't seen in the start of the year. The production numbers are good - there are recalls which each company goes through, then there is sad news off the plant in Shangai but for that what happened for shareholders to get punished. Why was there a run up and now a run down

It has to do everything with Twitter. I explained up there. You can’t separate Tesla&Co from Twitter. It is run by the same guy.

 

[MaximaGuy]

It has to do everything with Twitter. I explained up there. You can’t separate Tesla&Co from Twitter. It is run by the same guy.

Agreed. Twitter fiasco at the expense of Tesla shareholders- the creating volatility for the run down since March when he took a dammmn survey for how much to offload. This guy is off the charts everyone knew he was heading into a swamp but didn't know his theatrics would tick off people and create a migraine for Tesla investors.

 

[edyvw]

Good thing I won't need to tap into my TSLA shares for several more years. If I needed some retirement income now I'd be PO'd and nervous. When I look at the daily closing price I usually utter a four letter word with a few exclamation points but at the moment I'm still way ahead and it's just paper numbers right now.

TSLA's valuation is very much driven by the emotion of investors. Elon's behavior is the reason for that. But I still feel that the stock price will soar again so I'm sitting it out right now.

Too bad TWTR hasn't dropped by 50%. That would provide a good investment opportunity. I have no doubt that Elon will revamp the entire company and its features and make it a money machine. Then he will sell it and use the money to start his molecule transporter company like on Star Trek or something equally crazy.

The things is, Twitter is not tangible product. He has to ramp up traffic. But, traffic itself doesn’t mean anything. Marketing does. If traffic is radioactive, it will be hard to attract marketing. Twitter was always on the verge of losing money even before bunch of companies pulled out.
This was attempt by Musk to get into news that he desperately craves. He did. But he couldn’t bail out of it. This is not one of those things when he says: give me 6bln I will solve world hunger. UN says: here you go, and he bails out. Or: I will save kids in the cave, and professionals tell him to take a hike , and he does.
I think part of the problem is that last time he got into problem with SEC, they did not seriously went after him. If he had to pay some meaningful penalty, he might rethink about how much attention he seeks. But they didn’t, and he thought: oh well, I can do whatever. But this time, he couldn’t get out of the deal he never wanted.

 

[edyvw]

Agreed. Twitter fiasco at the expense of Tesla shareholders- the creating volatility for the run down since March when he took a dammmn survey for how much to offload. This guy is off the charts everyone knew he was heading into a swamp but didn't know his theatrics would tick off people and create a migraine for Tesla investors.

It is all on him. He offered $44bln bcs. he wanted attention. He was never serious. Problem is, Twitter board was REALLY serious as they never in wildest dreams could hope that some idiot would offer anything over $20bln, and even that is stretch. They wanted money, and they had Musk on the hook.

 

[Owen Lucas]

I think Twitter will eventually fail, ironically getting cancelled, and fading into the same place as Myspace, but that won't hurt the stock in the long run.

My prediction is:

• Twitter woes (possibly introduction of an alternative which advertisers switch to) = decline of TSLA shares for probably the next 6 -12 months. Possibly a massive decline from today.

• Price stabilizes once Twitter failure is priced in / investors forget: 12 months plus.

• Next bull run (which depends on Fed easing and stopping interest rate hikes) the stock skyrockets again because after all it is a emotion / publicity powered meme stock - 12 months plus.

Variables: Impact of recession, geopolitical issues. Just a lay persons "analysis".

 

[JeffKeryk]

Tesla will be belly up any day now, right?

 

[edyvw]

Tesla will be belly up any day now, right?

No, it won’t. But, selling fog might be.

 

[edyvw]

I think Twitter will eventually fail, ironically getting cancelled, and fading into the same place as Myspace, but that won't hurt the stock in the long run.

My prediction is:

• Twitter woes (possibly introduction of an alternative which advertisers switch to) = decline of TSLA shares for probably the next 6 -12 months. Possibly a massive decline from today.

• Price stabilizes once Twitter failure is priced in / investors forget: 12 months plus.

• Next bull run (which depends on Fed easing and stopping interest rate hikes) the stock skyrockets again because after all it is a emotion / publicity powered meme stock - 12 months plus.

Variables: Impact of recession, geopolitical issues. Just a lay persons "analysis".

The vultures are already after Twitter traffic, mostly Mastodon.

 

[DwightFrye]

Unfortunately Tesla shareholders are suffering (maybe) due to Elon's theatrics and his acquisition of Twitter right now.
But Elon's plan for Twitter is not just to clean it up and resume the platform as it was. It is to greatly expand the type of services available on that website. If he is successful advertisers will again be drawn to Twitter as will users who are interested in things other than "following" some stupid celebrity.

Elon has been counted out many times in the past and he didn't become the world's richest man my making a lot of mistakes. Will Twitter be Elon's Waterloo ? Could be. But at the moment and for perhaps the next 6 months to a year any predictions regarding which way things are going to go are questionable.

I'm just going to sit back and watch the hysterics.

 

[JeffKeryk]

TSLA has always been a roller coaster. It is at its lowest price in 2 years. Go back 3 years and it is 8x higher.
If you are short term thinking, TSLA may not be your investment. IMO, single stock investing is risky altogether.
If you invest long term, as do I, TSLA might be an opportunity right now.

Good luck!

 

[UncleDave]

The things is, Twitter is not tangible product. He has to ramp up traffic. But, traffic itself doesn’t mean anything. Marketing does. If traffic is radioactive, it will be hard to attract marketing. Twitter was always on the verge of losing money even before bunch of companies pulled out.
This was attempt by Musk to get into news that he desperately craves. He did. But he couldn’t bail out of it. This is not one of those things when he says: give me 6bln I will solve world hunger. UN says: here you go, and he bails out. Or: I will save kids in the cave, and professionals tell him to take a hike , and he does.
I think part of the problem is that last time he got into problem with SEC, they did not seriously went after him. If he had to pay some meaningful penalty, he might rethink about how much attention he seeks. But they didn’t, and he thought: oh well, I can do whatever. But this time, he couldn’t get out of the deal he never wanted.

Did he say he could do it for 6B? OR did he put the UN up to the challenge of showing him?
Curious did anyone ever scrutinize that plan?

Did we ever figure out where the 5.7B he donated went?

Elon Musk gave a mysterious $5.7 billion donation weeks after he dared the UN to show him its plan for solving world hunger

The UN World Food Program executive director David Beasley said global elites should step up, and that $6 billion would help feed people at risk of starvation.

fortune.com