Do you think Elon has just about had it with the SEC?

[Uncle Paul]

After the SEC demanded Elon to sacrifice his core principals to settle with them over his Tweet, do you think he has had just about enough of them.

Have to imagine that he is seriously rethinking his idea of taking the company private and ending this circus.

With the stock pricing going down, he could now do it for far less money than previously estimated.

This would free him up to speed up the transition of transportation from fossil fuels to much cleaner and less expensive electricity.

Imagine what Elon could do if he did not need to work in a suit of chains

 

[HankLloydRight]

I think Elon needs to learn the rules of the game, and follow them.

He might be rethinking taking the company private, but I don't think that will actually happen.

 

[teethdood]

He can still take the company private using his SpaceX stock. However, the SEC lawsuit still stands as it happened under its watch while Tesla was a publicly traded company. If the SEC wins, then Elon personally is still subject to SEC fines. Other lawsuits from "investors" would be that much stronger because of the SEC lawsuit.

 

[Tezlanian]

Well, he called their bluff and got a better deal.

 

[Barklikeadog]

After the SEC demanded Elon to sacrifice his core principals to settle with them over his Tweet, do you think he has had just about enough of them.

Have to imagine that he is seriously rethinking his idea of taking the company private and ending this circus.

With the stock pricing going down, he could now do it for far less money than previously estimated.

This would free him up to speed up the transition of transportation from fossil fuels to much cleaner and less expensive electricity.

Imagine what Elon could do if he did not need to work in a suit of chains

Battery powered rockets?

 

[Uncle Paul]

Bet the hardest thing for this is knowing that the $40 Million will be distributed to the people that shorted his stock.

 

[strangecosmos]

Well, he called their bluff and got a better deal.

He actually got a worse deal. The original settlement involved 2 years away from the Chairman role and a $10 million fine, that got upgraded to 3 years and $20 million after Elon rejected the original settlement.

 

[Tezlanian]

He actually got a worse deal. The original settlement involved 2 years away from the Chairman role and a $10 million fine, that got upgraded to 3 years and $20 million after Elon rejected the original settlement.

Appears so. Too bad. When I saw the APNews story I figured he'd had gotten better from it considering the turn around time.

 

[voip-ninja]

He actually got a worse deal. The original settlement involved 2 years away from the Chairman role and a $10 million fine, that got upgraded to 3 years and $20 million after Elon rejected the original settlement.

Someone talked Elon out of tilting at the SEC windmill. He should have taken the first offer.

 

[strangecosmos]

Someone talked Elon out of tilting at the SEC windmill. He should have taken the first offer.

 

[alloverx]

I fought the law and the law won.

 

[ricebucket]

Bet the hardest thing for this is knowing that the $40 Million will be distributed to the people that shorted his stock.

You do realize that plenty of long investors were hurt by his going private charade right?have you seen the stock price since his announcement?

 

[strangecosmos]

have you seen the stock price since his announcement?

There was an equal or great amount of volatility before Elon tweeted about going private. On August 2, the stock moved 16%. On the day of Elon's tweets, the stock only moved 11%.

Focusing on the short-term stock price is a mistake. The correct time frame for evaluating a company's stock price is years — multiple years — not months, weeks, days, hours, or minutes. Ultimately, it doesn't matter how the stock price changes week to week. All that matters is Tesla's ability to execute on its Master Plan and generate cash flow over the next 5 to 20 years.

The stock market is volatile. Some stocks are especially volatile. In the words of Elon, "I think that if people are concerned about volatility, they should definitely not buy our stock."

(Disclaimer: this is not investment advice.)

 

[ricebucket]

There was an equal or great amount of volatility before Elon tweeted about going private. On August 2, the stock moved 16%. On the day of Elon's tweets, the stock only moved 11%.

Focusing on the short-term stock price is a mistake. The correct time frame for evaluating a company's stock price is years — multiple years — not months, weeks, days, hours, or minutes. Ultimately, it doesn't matter how the stock price changes week to week. All that matters is Tesla's ability to execute on its Master Plan and generate cash flow over the next 5 to 20 years.

The stock market is volatile. Some stocks are especially volatile. In the words of Elon, "I think that if people are concerned about volatility, they should definitely not buy our stock."

(Disclaimer: this is not investment advice.)

Way to cherry pick your data and not see the forest for the trees. Do you truly believe that the huge decrease in stock price over the last month is not due mainly to Elon’s going private mess?

If you look at the trajectory of the stock over the past year, it has been slowly ticking up, until his tweets.

Moreover, your narrow definition of stock price trends as only relevant over multiple year window is not how much of the stock market works. This is just reality, for all stocks, not just TSLA. You can’t just arbitrarily remove any inconvenient truths from your definition. This, unfortunately, is how the stock market works.

 

[Peteski]

Way to cherry pick your data and not see the forest for the trees. Do you truly believe that the huge decrease in stock price over the last month is not due mainly to Elon’s going private mess?

If you look at the trajectory of the stock over the past year, it has been slowly ticking up, until his tweets.

Moreover, your narrow definition of stock price trends as only relevant over multiple year window is not how much of the stock market works. This is just reality, for all stocks, not just TSLA. You can’t just arbitrarily remove any inconvenient truths from your definition. This, unfortunately, is how the stock market works.

You obviously have a different idea of what a "long investor" actually is. For me, long means years, not days, weeks or even months. I'm thinking now is a good time to buy into Tesla as a long term bet or add to existing long term stock. I realise the stock market doesn't necessarily work that way, but for me it does!

FWIW I don't think strangecosmos was narrowing the definition of stock price trends, merely responding you your assertion that "long" investors would be hurt by short term stock volatility. That doesn't make much sense to me if they are in it for the long haul. Unless you think this little spat with the SEC is going to seriously affect Tesla long term stock price?

 

[ricebucket]

You obviously have a different idea of what a "long investor" actually is. For me, long means years, not days, weeks or even months. I'm thinking now is a good time to buy into Tesla as a long term bet or add to existing long term stock. I realise the stock market doesn't necessarily work that way, but for me it does!

FWIW I don't think strangecosmos was narrowing the definition of stock price trends, merely responding you your assertion that "long" investors would be hurt by short term stock volatility. That doesn't make much sense to me if they are in it for the long haul. Unless you think this little spat with the SEC is going to seriously affect Tesla long term stock price?

First of all, there’s very good reasons why short sellers exist and the practice is legal. In many situations they provide balance and liquidity to the market and make the market healthier. I don’t want to get into a discussion over this practice right now.

But even using your narrow, contrived, unrealistic definition of a long investor, I can think of lots of reasons why someone might lose money over this. For example, supposedly I bought the stock a month ago with the intention of holding onto it for a year. But after a few weeks of 30% losses and the increasing likelihood that the CEO will end up in jail, I decide to cut my losses and sell instead. In which case I would have lost a lot of money. (And by the way the stock still have not recovered to pre-privatization levels so even if I hadn’t sold, it is still underperforming, a huge opportunity cost.) For any investor, no matter what type and what duration, there’s always a price for which they must revert. And this is just one example I can think of.

 

[Peteski]

First of all, there’s very good reasons why short sellers exist and the practice is legal. In many situations they provide balance and liquidity to the market and make the market healthier. I don’t want to get into a discussion over this practice right now.

But even using your narrow, contrived, unrealistic definition of a long investor, I can think of lots of reasons why someone might lose money over this. For example, supposedly I bought the stock a month ago with the intention of holding onto it for a year. But after a few weeks of 30% losses and the increasing likelihood that the CEO will end up in jail, I decide to cut my losses and sell instead. In which case I would have lost a lot of money. (And by the way the stock still have not recovered to pre-privatization levels so even if I hadn’t sold, it is still underperforming, a huge opportunity cost.) For any investor, no matter what type and what duration, there’s always a price for which they must revert. And this is just one example I can think of.

So in your view a new investor who bottles out after a few weeks over short term stock volatility (this is Tesla stock we're talking about remember) and loses a load of money in the process is a legit "long investor"? And you call my definition of a long investor narrow, contrived and unrealistic! You couldn't make this stuff up...

 

[ricebucket]

So in your view a new investor who bottles out after a few weeks over short term stock volatility (this is Tesla stock we're talking about remember) and loses a load of money in the process is a legit "long investor"? And you call my definition of a long investor narrow, contrived and unrealistic! You couldn't make this stuff up...

So your definition of a long investor is someone who buys and then not looks at the price for years and does not take action even if he’s about to lose a significant chunk of his money and the company is running into serious problems? That’s not an investor; That’s just an idiot.

And by the way, I specifically mentioned several times that this is one example out of many. So no, I did not narrowly restrict to only one type of investor in my arguments.

 

[Peteski]

So your definition of a long investor is someone who buys and then not looks at the price for years and does not take action even if he’s about to lose a significant chunk of his money and the company is running into serious problems? That’s not an investor; That’s just an idiot.

And by the way, I specifically mentioned several times that this is one example out of many. So no, I did not narrowly restrict to only one type of investor in my arguments.

My idea of a long term investor is someone who weighs up the potential for growth and then puts their money where their mouth is. Anyone seriously looking at a long term Tesla investment is not going to be phased by short term volatility or they didn't do their homework beforehand. Have any long term investors actually complained about losing money yet over these price swings? As that was your premise above.

 

[trm2]

I just want to know what he was smoking when he said he wanted to take it private at, ahem, 420.