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Short-Term TSLA Price Movements - 2016

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No need for hedges:
1) tesla adopts their prices. The euro dropped 30% over the last 2 years, and Tesla adapted their prices frequently.
2) Not all Tesla's cost are in dollar. Wages and service center costs are in euro in europe/gbp in the uk. Some of the parts for the car also come from europe.
If they sold a car in May and deliver in July, they will get 10% less in dollars. They don't adjust the price of a sold product.
 
Can Elon Musk make solar panels as attractive as a Tesla?
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Two years ago, when SolarCity SCTY, -3.75% acquired Silevo, a solar panel manufacturing startup, Musk — whose cousin owns SolarCity — had spoken about manufacturing cool-looking panels. Later that year, when he announced the setting up of a ‘gigafactory’ to make batteries for Tesla, he emphasized the importance of looks and aesthetics of the factory. On Wednesday, discussing the proposed Tesla and SolarCity merger, he again spent a lot of time on aesthetics. He said that SolarCity was working toward improving efficiency and aesthetics of rooftop panels, and that while they will get there on their own, “that journey will be accelerated as part of Tesla as well.”

does the way solar panels look play a large role in a consumer’s decision to go solar? For many people, the answer is yes. The sight of bulky black or blue solar panels with metalframes holding them up does put some people off.

California-based Lumeta Solar found upon surveying over 500 prospective customers in 13 states that 12.4% of people say it’s extremely important, 20% very important and 30% moderately important; only 21% say it’s slightly important and 16% say it’s not at all important when they decide whether or not to purchase solar panels.

Meanwhile, in a survey on the New York-based environment and sustainability website TreeHugger, about 30% of respondents, when asked if it makes sense to prevent homeowners from installing solar systems for aesthetic reasons, say, “No, but they should be installed with aesthetics and design in mind.”

While upfront costs and financing are on top of the list when people consider converting their house to solar energy, consumers also take aesthetics into consideration, experts say.

“It is quite an important part of the process, especially if the panels are in front of the house,” said Vikram Aggarwal, CEO of EnergySage, an Expedia-like portal that lets consumers compare and choose from various solar power systems. “Very often, customers who are keen on solar hold back because of the aesthetics.”

At times, customers even choose looks over efficiency. For instance, if the energy requirements of the house require, say 19 panels, and 16 of them can form a rectangular shape and the other panels need to be placed elsewhere and won’t clearly form a rectangular shape on the roof, customers are willing to let go of a few panels and give up on that additional energy generation in order to ensure the panels look good on a roof, Aggarwal said.

Furthermore, even if consumers don’t mind the appearance and want to go solar for its other benefits, several homeowners associations and landmark/historical buildings in states such as Nebraska, Colorado and California don’t permit their members to put up solar panels on their roofs because they believe they harm the appearance and uniformity in the neighborhood.
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This is only true if you are using margin.

If you have a "fully paid" or "cash" account, the brokerage is prohibited from lending out stocks in that account without asking your permission (and paying you interest). There are SEC regulations about this.

I believe that even if the account is designated as a margin account, if you are not using any margin at all, it's treated as a cash account.

If you have any margin loan or margin usage in the account, *all* the stocks become fair game for the brokerage to lend out, unless you make specific instructions.

Can I ask a question regarding Margins account? Assuming if I bought and sold a stock, and without waiting for cash settlement back to my account, and I proceed to immediately 'Buy' another stock, is this considered as margin trading (or margin is only applicable when I borrow money that I don't have?)
 
If they sold a car in May and deliver in July, they will get 10% less in dollars. They don't adjust the price of a sold product.
Tesla also don't adapt the prices daily. Typically they adapt the prices every 3 months. Any changes of the exchange rate in between can work both ways. And the price changes have a fairly large lag on the currency movements. E.g. The prices in euro have always (since sales in europe started 3 years ago) been adapted upwards, but the euro is now 10 percent stronger than 6 months ago. So assuming the price was right 6 months ago, Tesla has been silently benefitting 10% on all cars sold in europe due to the price not beong lowered..
 
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There's an article somewhere that recommended that Tesla start financing it's own cars. It said that it would need to wait because it's a capital intensive business, It pointed out that GM makes more money from financing than from selling cars and that Tesla has stated it's intention to do that.
As Tesla stockholders, these are risks we were not expecting to deal with. Since Tesla is focused on being the best manufacturing and engineering company in the world, we do not trust you to handle a very different bank-like business. It has similarities to the financial operations which caused many companies to go bust or need bailouts in 2008. How do you plan to get out of this financing business? We would be much happier if SolarCity, in the future, used straightforward arrangements with banks such as Tesla makes with banks for car loans, where SolarCity has zero or minimal exposure to refinancing and default risks.
 
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I took that exchange to mean that by owning the manufacturer they were free to make panels attractive going forward, not that they were already attractive.

Mike
Although I inferred that too, I seem to remember him saying "look at it" as if it is already better looking. I see many of the premium solar panel brands market their attractiveness with respect to the "average" panel.
 
The EU led by Germany and beholden to German industry has a ridiculous (and something that belongs to last century) 10% tariff on imported motor vehicles. I can quickly see the UK forming free trade deals with the US, which will help with Model 3 sales.

Except that with how low the Pound dropped compared to the USD, taxed cars sold by Tesla to the EU will be cheaper / more profitable than untaxed cars sent to England.

And the EU will also eventually have a Model 3 factory, which--surprise!--still results in taxed Tesla cars for the UK.

There is literally no way Britain's economy can win from this over the next few (several+?) years. US markets I imagine will recover but Scottish independence, Irish reunification, and other possible EU members starting their own referendums will thrash Europe's economy.
 
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