TSLA Market Action: 2018 Investor Roundtable

[SteveG3]

i would like to understand (in layman's terms) what this drop in stock price mean to the Tesla company as a whole? Would there be any negative impact if the share drops further still? Tesla itself would still be manufacturing cars on a daily basis right? So that would mean they are still earning from customers who paid and collect their cars.

So how does this affect them? Would they run out of money? What would happen if the price drops to $0? (if that's even possible?) I would like to understand the implications of what this drop means.

To my view, only direct impact would be if they look to raise more funds by selling more shares, the higher the stock price, the more efficient the raising of funds (less dilution to existing shareholders). I don’t see Tesla raising any funds near term (clearly do not need to now) and in the big picture, a $45 billion market cap is not by any means a poor point to raise funds if it were needed.

 

[ZsoZso]

Da Green is here!

 

[JRP3]

Da Green is here!

Gone!

 

[justvisiting]

To my view, only direct impact would be if they look to raise more funds by selling more shares, the higher the stock price, the more efficient the raising of funds (less dilution to existing shareholders).

You also have to consider the fact that a continued drop in prices could lead to margin calls for Musk, which in turn puts even more pressure on the stock price.

 

[Starno]

For personal insolvency?

I don't understand. A company that will make 50B net profits in 8-10 years, trading at 45B will make me bankrupt ?

 

[Tslynk67]

And a very good frien

Gone!

Seems to be tracking NAS now, albeit magnified...

 

[SteveG3]

You also have to consider the fact that a continued drop in prices could lead to margin calls for Musk, which in turn puts even more pressure on the stock price.

I don’t see Tesla going under $8-15 a share, so I’m not concerned about Musk getting a margin call. What’s more, what Musk own’s in SpaceX is worth many times more than any outstanding personal line of credit balance (on the scale of several hundred times more).

 

[⚡️ELECTROMAN⚡️]

Model x is super safe, however autopilot cannot be trusted if responsible for collision.
Don’t beta test with your life, wisen up.

If you think AP is responsible for the collision l’m guessing that you don’t have and use AP.

 

[bdy0627]

Second short attack. The result of this may well determine if this is the bottom or not.

 

[Waiting4M3]

i would like to understand (in layman's terms) what this drop in stock price mean to the Tesla company as a whole? Would there be any negative impact if the share drops further still? Tesla itself would still be manufacturing cars on a daily basis right? So that would mean they are still earning from customers who paid and collect their cars.

So how does this affect them? Would they run out of money? What would happen if the price drops to $0? (if that's even possible?) I would like to understand the implications of what this drop means.

Tesla should have enough cash to fund further operations and expansion as long as they can reach their goal of 5k/wk production in the near future, ideally by end of Q2, but Q3 should be fine too. As long as Tesla doesn't need to tap the capital market in the short term, this dip will not matter.

Most of the short term impact of the dip is that lot of people got TSLA shares for dirt cheap, but they all have long faces on, for some reason

 

[Drax7]

If you think AP is responsible for the collision l’m guessing that you don’t have and use AP.

My driving a few miles to the supermarket does not require it.
Moreover the mind share it takes to monitor it stresses me

 

[Tenable]

Are we all going to apologize to all of the people who said that this type of correction was possible? We can talk about the potential of Tesla until the cows come home, but lots of people on this thread have been "disliked" because they were not super positive. A month ago, saying that a price of 300 would be reasonable could lead to multiple downvotes.

I've posted several times that 250 was possible and I was buying puts accordingly. I did not receive a single dislike. We are open to all sides here as long as the argument is rational.

 

[ZsoZso]

Gone!

It must be a Hobbit:

"There and back again -- a Hobbit's tale"

 

[sweter]

I'd actually feel better if the price stayed low today, around $257, so that after delivery numbers come out we will take either a smaller hit or an even larger raise in TSLA.

This. Let's be realistic.

Also, looking with green jealousy at other stocks I sold to buy TSLA that are now up 5% or more... Oh well, $250 to $380 is 50%, so revenge will be mine..

 

[Waiting4M3]

It must be a Hobbit:

"There and back again -- a Hobbit's tale"

No it's a mole, shorts are whacking it

 

[Curt Renz]

i would like to understand (in layman's terms) what this drop in stock price mean to the Tesla company as a whole? Would there be any negative impact if the share drops further still? Tesla itself would still be manufacturing cars on a daily basis right? So that would mean they are still earning from customers who paid and collect their cars.

So how does this affect them? Would they run out of money? What would happen if the price drops to $0? (if that's even possible?) I would like to understand the implications of what this drop means.

The company sold shares of stock in its IPO and subsequent offerings. The shares are all owned by the shareholders. It's the shareholders who suffered the recent share price declines. The share price does do not have a direct impact on the company's revenues or profits. However, the share price could affect the price of any further share offerings or influence borrowing rates.

 

[dmvevguy]

The only car in the universe is a Tesla. This market is all manipulated...the big Wall Street drove this stock price down, so they can get in and ride it out strategically right after Elon got his compensation approved. I'm super long all along, and not worried about any of this nonsense. Even if we fail 2500/week, we will ultimately succeed and this guy has proven it. There is no other company that is doing real shitt and he turned out around this ole' gas guzzling car industry to make others adopt EV!

 

[sweter]

Also, very low share price might drive a risk of hostile takeover? How big % of shares is on the market?

 

[Tenable]

Tesla should have enough cash to fund further operations and expansion as long as they can reach their goal of 5k/wk production in the near future, ideally by end of Q2, but Q3 should be fine too. As long as Tesla doesn't need to tap the capital market in the short term, this dip will not matter.

Most of the short term impact of the dip is that lot of people got TSLA shares for dirt cheap, but they all have long faces on, for some reason

This clip actually made me LOL, thank you. I needed that.

 

[SteveG3]

keeping things in perspective, here is what a rational guest on a financial network sounds like,

Instinet's Shah Says Tesla Has Tremendous Momentum in Electric Vehicles

guy was literally taking the words right out of my mouth as I watched : )