Tesla, TSLA & the Investment World: the Perpetual Investors' Roundtable

[TradingInvest]

Even more so than buying all the lottery tickets, buying all the TSLA to force a short squeeze is an interesting value proposition.

NaA.

Buying a stock to force a short squeeze or to help the stock to move up, is the wrong way to think about investment.

Investors should always look at the company, the stock, and their account objectively. The main goal should be making money without too much risk. Only big money can make a difference.

 

[sunny-value]

I agree, Elon's email likely spooked investors on the cash flow target. What the market wants to see is data on orders or demand. If your stock is getting beat up and you have good news, you should share it. We don't need a tweet from Musk we need a press release. The market will interpret silence as confirmation.

So what might this tell you about demand - his silence?

 

[Boomer19]

So what might this tell you about demand - his silence?

you’re right, nobody wants the cars. we are all just wasting our time. what happened over the last 8 years isn’t real. their cars aren’t penetrating any of the auto market share

 

[Matias]

Tesla to change the narrative is announce the Pick Up debut this summer. Maybe it will be done at the Shareholders meeting next month. And have some specifics as to when and where it will be built.

They’ve already announced Roadster 2, Truck, Model Y, FSD and robotaxis. I don’t think that we need any more announcements..

 

[Huskyf]

Did you saw others carmakers like GM -4.20% F -2.00% NIO -3%
It' s the fault of trade war

 

[mongo]

The good thing is that Elon explained that in Q1, they almost had zero deliveries in January and did half of their deliveries in March (I'm on mobile so please indulge that lack of quote).

More than that, they moved 50% the vehicles in last ten days in March. The China numbers show that virtually no sales (3%) of the 3 occurred in Jan or Feb and 25% of the cars slipped to April.

Buying a stock to force a short squeeze or to help the stock to move up, is the wrong way to think about investment.

Investors should always look at the company, the stock, and their account objectively. The main goal should be making money without too much risk. Only big money can make a difference.

Oh that is not an investment strategy, it's a get more rich quick plan.
Play numbers: 128 million shares in float, $200 a share = 25.6 Billion, recall them all, collect on 40 million shares shorted at $500 each = $20 Billion. Sell shares on open market at $250*128 million = 32 Billion, total profit $26.4 Billion.

 

[Curt Renz]

I just now placed a comment in the technical analysis thread: TSLA Technical Analysis

 

[VValleyEV]

The guy's a complete a-hole and has been writing FUD and complete garbage about Tesla for years now, I can't stand him.

Yup, I recently canceled my WSJ subscription after 30 years running. Reasons: uncritical support for massive fossil fuel subsidies, fossils like Charley Grant and Holman Jenkins that have become an insult to the journalism profession, and lousy support for submitting comments (abysmal close-mindedness of most that do). They charge a lot of money for this publication, but do not seem interested in feedback from their subscribers.

 

[Dutchie]

Short sellers are to blame for the drop in Tesla's stock, Bank of America claims

How does that work in practice? How can a group of investors- who want the sp to go down - make it go down by such a great number? It cannot be done by an article here and there in my opinion.

 

[TheGrimSweeper]

How does that work in practice? How can a group of investors- who want the sp to go down - make it go down by such a great number? It cannot be done by an article here and there in my opinion.

It's not an article here and there. Its daily non-stop articles, that get picked up by mainstream media cause negative headlines get clicks.

 

[MarcusMaximus]

How does that work in practice? How can a group of investors- who want the sp to go down - make it go down by such a great number? It cannot be done by an article here and there in my opinion.

Short sellers borrow stock and then sell it on the market. If they time their sales well, they can create seeming gluts in supply, causing the price to fall. If they do that strategically, they can make a perception of a sell-off or trigger stop losses, causing further stock declines. Also, since they're borrowing shares, rather than buying them, they effectively cause (temporary) dilution until they cover.

 

[electracity]

Could see that Friday if Elon sends an email

"Switching to selling virtual cars only. Fantastic margins"

 

[Starno]

Analysts and investors aren't asking for much. They just want profitability and growth.
As long as the narrative is unprofitable "as long as..." + demand slow down. The SP will be bearish

 

[j6Lpi429@3j]

Analysts and investors aren't asking for much. They just want profitability and growth.
As long as the narrative is unprofitable "as long as..." + demand slow down. The SP will be bearish

but not from uber or snapchat it seems

 

[StarFoxisDown!]

How does that work in practice? How can a group of investors- who want the sp to go down - make it go down by such a great number? It cannot be done by an article here and there in my opinion.

They can if they're working with other investors and hedge funds who own shares and have the ability to dump shares on the open market at key times. This week has been one of the clearest examples of shorts working together with hedgies and the media such as CNBC. It's very obvious that they want the stock to close below the 200 line and today they're trying to break the low on Monday.

If the stock somehow makes it back above 200 at the close, expect another analyst or two to downgrade tomorrow. The level of manipulation here is comical but also depressing because we all know the SEC isn't going to lift a finger to investigate. The past couple of months has really felt like wall st is throwing everything they have in a last ditch effort to destroy the Tesla brand and movement. The only investors left are the one who are actually long and fully believe in the company.

 

[ggies07]

Analysts and investors aren't asking for much. They just want profitability

They were given that for 2 quarters and they didn't blink an eye. Time to move on from trying to please WS!

 

[JohnDinger]

They were given that for 2 quarters and they didn't blink an eye. Time to move on from trying to please WS!

"Trying to please WS"? Wall Street is the thing that just gave Tesla 2.5 billion dollars.

It's not too much to ask Tesla to produce a year of profitability. They're already in the hole, and expected to go deeper.

I think the biggest thing analysts are asking is what changes the trend?

Again, Tesla is forecasting record deliveries in Q2 and STILL a loss.

What changes this trend? What's the path to profitability?

In 2018, the path to profitability was "start mass delivering the Model 3."

They did that, and yet it doesn't look like that's a sustainable profit. So what's the next path to profitability?

 

[Hock1]

Buying a stock to force a short squeeze or to help the stock to move up, is the wrong way to think about investment.

Investors should always look at the company, the stock, and their account objectively. The main goal should be making money without too much risk. Only big money can make a difference.

One of the many problems with buying to force a squeeze is: when you buy you have to come up with real money while those who are shorting can sell you shares that don't exist. That's an uphill battle.

 

[KSilver2000]

Although I doubt it’s a 5-6% savings, but it’s only one example. Since inception, Model S and X has had many price drops due to efficiencies.

Tesla has had many price drops, but they’ve also had many price increases. Don’t think those were because of inefficiencies.

Plus, I don’t think Tesla should be dropping prices ever. Keep on bringing out new features, upgrades, or supercharging credits as demand levers. But, don’t keep changing prices. They need to think about keeping margins high and use those profits to fund other non-car manufacturing operations. They’re a public company, no need to be running a charity for EV movement. Especially if demand is not an issue. Look at Apple, Porsche, Netflix, and other successful brands with a loyal following.

 

[Dutchie]

Short sellers borrow stock and then sell it on the market. If they time their sales well, they can create seeming gluts in supply, causing the price to fall. If they do that strategically, they can make a perception of a sell-off or trigger stop losses, causing further stock declines. Also, since they're borrowing shares, rather than buying them, they effectively cause (temporary) dilution until they cover.

They can if they're working with other investors and hedge funds who own shares and have the ability to dump shares on the open market at key times. This week has been one of the clearest examples of shorts working together with hedgies and the media such as CNBC. It's very obvious that they want the stock to close below the 200 line and today they're trying to break the low on Monday.

If the stock somehow makes it back above 200 at the close, expect another analyst or two to downgrade tomorrow. The level of manipulation here is comical but also depressing because we all know the SEC isn't going to lift a finger to investigate. The past couple of months has really felt like wall st is throwing everything they have in a last ditch effort to destroy the Tesla brand and movement. The only investors left are the one who are actually long and fully believe in the company.

Thanks, learned something today