Tesla Stock

[alarmguy]

Tesla stock has increased in value from $30 to $215 since Jan 2020. I wouldn't feel all butt hurt about recent losses.

Of course you wouldn't feel hurt at $30
Would you have felt bad about the losses if you bought in Jan 2021?
What about the massive loss if you bought in Jan 2022?
If you bought in Jan 2023 you have a nice gain
If you bought in Jan 2023 you went no where and missed a HUGE upside stock market move.

... and god forbid you bought (like many people did) in-between some of those years, you lose half your money. Tesla is not an investment grade equity. It's a spec stock, built on hopes and dreams that still not only evades them but has gone backwards over the last 12+ months.
The market doesn't work like that to me. I see a company at stupid high PE multiples that is trading at almost half it high of Oct 2021.
Hardly a successful investment for many.

BTW, Bitcoin has increased in value from $8,000 in Jan 2020 to $60,000 today and still trades near its all time high. Bitcoin is another spec trade.
All I am saying is it's easy to pick an entrance point but the reality is, the stock is down 50% from its high. Hardly living up to the hype at this point. It may still but there were countless other companies over the past several years to make money with more safety, only if you were looking for safety of course. Risk/reward

 

[Nessism1]

Of course you wouldn't feel hurt at $30
Would you have felt bad about the losses if you bought in Jan 2021?
What about the massive loss if you bought in Jan 2022?
If you bought in Jan 2023 you have a nice gain
If you bought in Jan 2023 you went no where and missed a HUGE upside stock market move.

... and god forbid you bought (like many people did) in-between some of those years, you lose half your money. Tesla is not an investment grade equity. It's a spec stock, built on hopes and dreams that still not only evades them but has gone backwards over the last 12+ months.
The market doesn't work like that to me. I see a company at stupid high PE multiples that is trading at almost half it high of Oct 2021.
Hardly a successful investment for many.

BTW, Bitcoin has increased in value from $8,000 in Jan 2020 to $60,000 today and still trades near its all time high. Bitcoin is another spec trade.

True value is maybe somewhere near the red line? Buying on a bubble is never good.

 

[97prizm]

He has dismantled Twitter out of spite. I don’t consider that a genius maneuver, but can appreciate having faith in something.

Musk has also promised "fully autonomous vehicles " for eleven years. I think he's pumping the stock. There's only so long that should be happening. Business savvy sure, but genius is a huge stretch. Albert Einstein is considered a genius although he didn't do well in school. A smart CEO listens to what employees are telling them. Musk fires an entire department because he didn't like what he was told.

 

[SC Maintenance]

Tesla stock is hurting. So is Nissan and Ford. Ram's are rotting on the lot so says Bob.

Toyota stock is down 20% from its peak a few months back. So is Honda. Remember the overall market is at all time highs.

GM is up a bit, but its irrelevant because there stock is literlaly flat for the last 14 years. Done nothing. It goes up a bit, then back down a bit. @alarmguy is getting rich trading the channel

Used car prices have been falling for a while - so says Cox Automotive.

Possibly just the whole car market is turning over. Sure seems like it to me.

 

[ZeeOSix]

Possibly just the whole car market is turning over. Sure seems like it to me.

People are realizing that buying new cars at high interest rates, maintaining and insuring them is a pretty high overall cost endeavor. People stop buying as a result, and the impact takes a little time to hit the manufactures. Probably going to get worse before it gets better. I'm keeping all my current vehicles for as long as possible. I have zero desire to buy anything new.

 

[zzyzzx]

People are realizing that buying new cars at high interest rates, maintaining and insuring them is a pretty high overall cost endeavor. People stop buying as a result, and the impact takes a little time to hit the manufactures.

Yeah, but at some point are the manufacturers going to offer more affordable vehicles in the US?

 

[ZeeOSix]

Yeah, but at some point are the manufacturers going to offer more affordable vehicles in the US?

They will have to in some way in order to keep sales going on the slow movers, or stop making certain models if it comes down to that. Or people's income will have to keep up so people don't change their lifestyle - unlikely for most. If that did happen, then it would just keep feeding inflation.

 

[SC Maintenance]

They will have to in some way in order to keep sales going on the slow movers, or stop making certain models if it comes down to that. Or people's income will have to keep up so people don't change their lifestyle - unlikely for most. If that did happen, then it would just keep feeding inflation.

Its a catch 22. Or a doom loop if you will.

Slowing auto sales with decreasing prices lowers inflation.

Fed wants to lower rates, which will lower loan costs, which will make it possible to sell higher priced cars. So inflation will rise.

Just about all the decline in the CPI is attributable to auto prices. Guess what happens when interest rates fall.

 

[alarmguy]

Not that I agree with anything this woman says I do think she has some valid questions, though she cant single out one company for the reason of being at war with a company CEO however in this one case, I cant say that I disagree because Musk himself threatened developing AI projects outside of Tesla and it is true at the same time he preaches that Tesla is a technology company... so which is it Mr Musk?

Tesla’s board faces questions from Elizabeth Warren about Musk’s corporate ‘entanglements’​

https://www.cnbc.com/2024/08/09/eli...esla-chairwoman-robyn-denholm-about-musk.html

 

[ArrestMeRedZ]

I think if the questions asked were from a legitimate government oversight organization it would be appropriate to answer. Being as they come from an openly hostile partisan, I suspect they will be ignored, just like all the other letters from her office.

 

[Bill7]

I was meeting with my financial advisor today. He's very knowledgeable and trustworthy. Works for a supermajor investment company; everybody here would recognize. Well he is bullish on tech companies with Tesla being top on his list. His view is that Elon is a genius and is guiding the company to become way more than a car maker. So on his recomendation I bought a boatload of Tesla stock. It pains me to admit this move as most of you know my feelings about this automotive evolution.

Did I do the right thing or should I have stayed true to my instincts?

View attachment 177412
car.USNews

Buffet Indicator is close to 200%. There is a potential for a long middle east war with multiple countries starting soon.
My personal view for my own situation is it's prudent to wait for a big decline to happen first, before buying anything.

 

[SC Maintenance]

Not that I agree with anything this woman says I do think she has some valid questions, though she cant single out one company for the reason of being at war with a company CEO however in this one case, I cant say that I disagree because Musk himself threatened developing AI projects outside of Tesla and it is true at the same time he preaches that Tesla is a technology company... so which is it Mr Musk?

Tesla’s board faces questions from Elizabeth Warren about Musk’s corporate ‘entanglements’​

https://www.cnbc.com/2024/08/09/eli...esla-chairwoman-robyn-denholm-about-musk.html

Bashing Tesla stock has become a past time for some. Its publicly owned. The owners have spoken. They can sell if they like, and everyone else can kick rocks, irrelevant of their title or position.

Public traded companies are the epitome of democracy.

Unlike us bashing a company, which is our right, public officials are not supposed to - as it can be taken as the governments opinion. Its abuse of power. If the SEC feels they need to investigate, they should do it on their own, without outside pressure.

My guess - All of Elon's companies have information sharing agreements in place - they virtually have to given he runs all 3. Also, given this could easily be considered trade secret - they probably don't have to disclose them. Just a guess of mine (based on some experience).

Full disclosure - I have never owned a single share of Tesla stock outside of a broad market fund. I still support their shareholders rights to choose their leader, which they did very recently.

 

[alarmguy]

I think if the questions asked were from a legitimate government oversight organization it would be appropriate to answer. Being as they come from an openly hostile partisan, I suspect they will be ignored, just like all the other letters from her office.

Agree

 

[Passport1]

Tesla stock is rebounding despite depressed sales. This paradox begs for an explanation. So here is mine. Musk made a surprise visit to China last spring. Perhaps it was to shore up his business dealings with the Chicoms and get them to buy more Model 3 Teslas. I think there was much more to his trip. Chinese EV makers are searching for a way to penetrate the US market. Tesla is going to provide that portal. Musk is going to take on BYD (maybe more) and sell them concurrently here with his cars. Many US manufacturers have done this before.

This will not be the first time an unknown and foreign auto maker has come to this country. In the mid 1960s a fellow named Max Hoffman began to import a relatively obscure car to the US market. That brand was BMW. Hoffman had been doing this with other European marques earlier. In 1970 I bought a brand new BMW 2002 in Chicago. I had to go through a Mercedes dealer to get it. They ordered it right from the factory in Bavaria. They also offered to source parts and service the car if I needed it. At the time I was working for VW so there was no need for dealership support as it actually didn't exist.

Here is my point. Chinese EVs are coming here and Musk is going to sell and service them. Insiders know this and the stock reflects that impending reality.

 

[SC Maintenance]

Or it could be market plumbing.

S&P 500 is like 54% index funds. So every month Vanguard and others get payroll deductions from millions of people and must buy stock.

Except all the speculative sellers already sold during the decline. So you have left 54% retirement holders not selling, long term individual holders and a lot of insiders including Musk himself that hold a huge percentage and aren’t selling. There are no sellers left.

So automatic index buyers + small float means price goes up.

 

[JeffKeryk]

Tesla stock is rebounding despite depressed sales. This paradox begs for an explanation. So here is mine. Musk made a surprise visit to China last spring. Perhaps it was to shore up his business dealings with the Chicoms and get them to buy more Model 3 Teslas. I think there was much more to his trip. Chinese EV makers are searching for a way to penetrate the US market. Tesla is going to provide that portal. Musk is going to take on BYD (maybe more) and sell them concurrently here with his cars. Many US manufacturers have done this before.

This will not be the first time an unknown and foreign auto maker has come to this country. In the mid 1960s a fellow named Max Hoffman began to import a relatively obscure car to the US market. That brand was BMW. Hoffman had been doing this with other European marques earlier. In 1970 I bought a brand new BMW 2002 in Chicago. I had to go through a Mercedes dealer to get it. They ordered it right from the factory in Bavaria. They also offered to source parts and service the car if I needed it. At the time I was working for VW so there was no need for dealership support as it actually didn't exist.

Here is my point. Chinese EVs are coming here and Musk is going to sell and service them. Insiders know this and the stock reflects that impending reality.

I believe it's simpler than that. Tesla, like all high tech, is a roller coaster in the big scheme of things.
Regarding China, every car company deals with, builds in, procures from, sells in, etc. with them.

I am a long term hold on my (too small) TSLA holdings. My guess is, wait for the refreshed Model Y and other products are released.
Tesla is, by far, the most valuable car company in the world, 3x #2 the mighty Toyota and bigger then the next 9 combined.

 

[thastinger]

Or it could be market plumbing.

S&P 500 is like 54% index funds. So every month Vanguard and others get payroll deductions from millions of people and must buy stock.

Except all the speculative sellers already sold during the decline. So you have left 54% retirement holders not selling, long term individual holders and a lot of insiders including Musk himself that hold a huge percentage and aren’t selling. There are no sellers left.

So automatic index buyers + small float means price goes up.

This.

Between my Wife and I, with our company match, we pump 5K a month into 401Ks and it all goes into index funds. The money has to go somewhere.

 

[JeffKeryk]

This.

Between my Wife and I, with our company match, we pump 5K a month into 401Ks and it all goes into index funds. The money has to go somewhere.

Then why the spikes?

 

[Dave Hess]

This.

Between my Wife and I, with our company match, we pump 5K a month into 401Ks and it all goes into index funds. The money has to go somewhere.

5K is a lot of money per month. Smart investing.

 

[thastinger]

Then why the spikes?

Because it is a legal ponzi scheme.