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Jeffries note on Tesla: rated underperform, with PT of $280: Tesla "groupthink" challenged by Jefferies
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There is a pre-market volume much higher than usual at this time in the early morning hours - around 13k shares, down significantly -$6.59.
I am wondering if it is a bear attack to insinuate "double top"...
I am wondering if it is a bear attack to insinuate "double top"...
I think the math is wrong on this. I distinctly remember them selling in the low 200s. So we're not even double from where they sold. I bet the math was done by taking total market cap of TSLA and multiplying by 9%, but that is incorrect math as there has been significant additional shares issued in the last three years. So at most they would have nearly doubled their money from where they sold. Still might have been worth hanging on to, but not worth 6 billion.
I've thought from day one that Tesla asked them and Toyota to leave the board and divest for competitive reasons. No inside evidence, but its just my thinking and I've not seen any reason to think otherwise.
I am curious how TSLA fairs today. Last night was looking golden. Pre-market looking a bit rough.
I assume it's this:
Analyst Hits Tesla Inc (TSLA) With A Rare Sell Call
or could it simply be that it's above the line?
If this is not market manipulation, I don't know what is. Just look at the timing of this downgrade. They could have released the report last week, but no, they waited until TSLA closed all time high, when everyone starts to thinking of the momentum of this run, whether there's any steam left. This will be the most effective in pushing traders and weak longs into selling.
Tesla will lose a quarter of its value after production falls short of Street expectations: Jefferies
Tesla will lose a quarter of its value after production falls short of Street expectations: Jefferies
ValueAnalyst
Closed
Please keep in mind that even 100,000 shares of premarket volume only adds up to ~$38 million, which is very small compared to the $2 billion that trades in TSLA on average each day. On high volume days, volume increases to $5 billion to $8 billion range.
In other words, only ~1% of the day's volume, or ~0.05% of total market capitalization, normally trades premarket.
Given that there was a bearish analyst note issued today, today's premarket action is to be expected, and likely is not indicative of any underlying changes to the intrinsic value of the company. Selling pressure may or may not continue throughout the day, but I'm not concerned.
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actually... this quite literally is a reputable company that completely disagrees with what you believe is the intrinsic value of the company.
Mike Smith
Active Member
I don't think that's what's going to happen. There is nothing in this report that hasn't already been said - it's just the usual bear case. When the report is read bulls will see a buying opportunity and some shorts will take the opportunity to cover. As the price rebounds momentum traders will see that 'bad news' is being ignored and will move back in.
Also: this isn't a downgrade, it's initial coverage, and it sounds like they haven't done any real research or spoken to Tesla.
Reciprocity
Active Member
This reads to me like a cunning way to draw in more suckers to short the stock. There is literally no support for their argument other then they believe it to be true. There is absolutely now reason to believe that Tesla will not hit volume production on the order of at a minimum of 2x that of S+X. Just simply doing what they have already proven they can do, which is scale to around 2400 cars per week for S+X, I would assume at least 4k per week of the simpler car with top-tier-A-team suppliers. Now going from 4k to 10k next year will be a bit more of a challenge and something that Tesla has not yet done. But Tesla isn't a child feeling its way around the dark, they have hired people who can quickly ramp production to these volumes. I would be more worried if there was very large supplier risk, but I just dont see any issues that would delay production more then a few weeks, much less keep Tesla from ramping production over the next 15 months.
The basic thesis is given the past performance, the simplicity of the car compared to S/X, top tier suppliers and newly acquired production talent, the ramp should go smoother then S/X.
This is probably the most bullish news you will (or won't see) in the news today. Pay attention to
Signal (this) vs noise (some big company auto research analyst in Europe writes a book report)
Thanks to @Lump for sending me this link.
Continuing to look like China may NOT require JVs for foreign EV car manufacturers.
Business: Washington Post Business Page, Business News
Edit: @Navin beat me to it
Continuing to look like China may NOT require JVs for foreign EV car manufacturers.
Business: Washington Post Business Page, Business News
Edit: @Navin beat me to it
nobody questions that they won't *some day*... what they question is that they will hit 20 million/year in Feb of 2019 to justify a $465b market cap... sounds crazy?... just start reading here:
2017 Investor Roundtable: TSLA Market Action
@TrendTrader007 "I really believe that TSLA has an extremely high probability of hitting $2800 by March/April 2019 which is approximately 18.5 months from now"
7 likes, 2 loves, 1 helpful and 1 informative.
you guys are lost in your minds on what you think is "value".
You could move the money to a self directed or "checkbook" IRA and use the IRA directly for the purchase.
Could probably also have the IRA buy shares in the deal or something creative if you didn't want to leave the equity in a retirement account.
With Jefferies note, Model 3 withdrawal from the NACOTY award consideration (credit to @mrdoubleb) and potential change of Chinese rules for foreighn auto manufacturers it seems that there is a very active day ahead.
I bought in pre-market at $381.
I bought in pre-market at $381.
As I understand this, they are looking at the 11 free trade zones to be opened up. Does that mean the manufacturer can only sell cars in those zones without a JV?Thanks to @Lump for sending me this link.
Continuing to look like China may NOT require JVs for foreign EV car manufacturers.
Business: Washington Post Business Page, Business News
Edit: @Navin beat me to it
New Free Trade Zone in China - map and description
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