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General Discussion: 2018 Investor Roundtable

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Great article by Robert F. Kennedy Jr. on his personal experiences with corporate control of the media.

Elon Musk and the Corporate Controlled Media

Wow, that's a must read. Thanks for the share!

Yeah, I wish every journalist that bashed Elon over Pravduh would read that article. Even if a journalist isn't being directly influenced, the narrative gets shifted by those that are. That influence gets echoed and amplified in today's 24 hour news cycle by journalists who think they're just doing their job covering the latest hot topic.
 
With GF moving to full renewable energy next year it would be interesting to see an update on the calculations how much carbon footprint a Tesla has versus other. It was good already before but now it should be crazy good.


Elon Musk‏Verified account @elonmusk

Replying to @pmnordkvist
Gigafactory should be on 100% renewable energy (primarily solar with some wind) by next year. Rollout of solar already begun.
 
With GF moving to full renewable energy next year it would be interesting to see an update on the calculations how much carbon footprint a Tesla has versus other. It was good already before but now it should be crazy good.


Elon Musk‏Verified account @elonmusk

Replying to @pmnordkvist
Gigafactory should be on 100% renewable energy (primarily solar with some wind) by next year. Rollout of solar already begun.
Not sure if this changes anything at all. If they so far paid for renewable electricity it could be zero improvement.
 
Yeah, I wish every journalist that bashed Elon over Pravduh would read that article. Even if a journalist isn't being directly influenced, the narrative gets shifted by those that are. That influence gets echoed and amplified in today's 24 hour news cycle by journalists who think they're just doing their job covering the latest hot topic.

Anyone tweet the article to Elon?
 
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What % adoption is needed to reach tipping point for adopting new norms or tech?

New research suggests 25%.
Research Finds Tipping Point for Large-scale Social Change | Annenberg School for Communication

Relatedly, what is the tipping point for current OEM non-profitability based on loss of market share? While Gross Margin is amortized across all production, the bottom line is that the last X% of cars are the ones that generate the profit (and GM drops with lower production)...
 
Yeah, I wish every journalist that bashed Elon over Pravduh would read that article. Even if a journalist isn't being directly influenced, the narrative gets shifted by those that are. That influence gets echoed and amplified in today's 24 hour news cycle by journalists who think they're just doing their job covering the latest hot topic.

Honestly, its a shame for democracy and legislation what is happening to the US journalism. The bad part is not even that they are lying but that they have kind of a legal backup for it and can feel safe. I doubt that the public is really aware about this.

Its great to hear that at least some people speak out loud like Kennedy. We need more of those!

In Europe its hard to make a media liable for its lies although it happens from time to time. Public opinion is very clear on that topic. France just started to initiate a law that tries to eliminate this kind of lies at election years. Its almost impossible to prosecute asking me but at least having the law will help to support the honest journalists who question the politics of their companies and bosses.

I just had a meeting with a larger US PR Agency here in Germany and we discussed how to best get some good article about my company in the media. All people at the table agreed ad money is required to make an impact otherwise the effect will be low. The so called iron wall in the office of the media between ads business and journalism does not exists. Its like regardless if you tell the truth or you lie they won't publish much unless you pay with ads.

In Tesla's case the situation is particularly severe as the list of industries that want to see Tesla fail is very long. That Tesla does not do ads only adds to it. As now all automakers hop on EVs will help a little but the fact that Tesla will not give any money to the media will keep them doing what they do today.

Its interesting to see that here in Europe some good news concerning the call last week and also the SP development is dripping though. This includes the article about the 3 tear down. Still a large majority of media is still repeating the old narrative.
 
A few members have raised questions about whether it makes sense to focus on activities of short sellers versus other factors. As a long-term investor, I think the most important things to focus on are where the business is positioned and heading in the long run and long-term valuation.

But while sitting around waiting for the share price to increase the next 10X:), I personally think keeping track of what the shorts are doing is worthwhile, especially when short interest is extremely high, as it is now.

I am copying below a chart I posted on April 25 in the short interest thread. IMO circumstances have not changed much since, other than a 13% increase in the SP and a slight decrease in short interest.

Food for thought. Not advice.

@MikeC, thanks!

As a percentage of float this level of shorting has been exceeded only 4 times since early 2013 according to Gurufocus data.

Each previous peak preceeded a big upward SP move -- some of the largest in TSLA history. (Apologies for my poor graphic arts skills).

View attachment 296781

TSLA_Shorts041318.png.jpg
 
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Wasn't it started in the 30's? SEC act? Maybe it's just that financial "news" tv shows and the internet have made them much more visible?
No, I believe the original Securities Exchange Act of 1934 required *annual* reporting. I can't figure out when it was amended to require *quarterly* reporting in the US. It seems rather hard to track down this amendment.

I found that quarterly reporting was mandated in 2007 in the UK, and then dropped in 2014.

Edit: actually, I just checked the statute book, and the most-commonly-cited sections (section 15 and section 13d) do not require quarterly reports. As far as I can tell, the actual law in the US only requires annual reports and does NOT require quarterly reports.

Quarterly reports must be an SEC regulation, not an actual law. When was the regulation put in place?

Edit: OK, I'm tracking it down. It is a CFR regulation, not a law, and the regulation section is 240.13a-13. It's not clear to me when it was added to the regulations, but LONG after the 1930s. It's under the powers in 15 US Code section 78m, allowing the SEC ("the Commission") to require that issuers file "such quarterly reports (and such copies thereof), as the Commission may prescribe".

This regulation (which covers a lot of different things) was originally adopted in 1977, but amended in 1983, 1985, 1989, 1992, 1996, 2005, and 2008. I am not sure which of these amendments introduced the quarterly reporting requirement for all companies, but I'm pretty sure it wasn't the original 1977 regulation, because I remember 10-Qs were not a thing in the early 1980s. I haven't tracked down which amendment it was yet. The requirement seems to have been present before the 1996 amendment. It's a bit of a pain to dig up the text for the earlier amendments, which is why I haven't yet.

42 FR 24064, May 12, 1977, as amended at 48 FR 19877, May 3, 1983; 50 FR 27939, July 9, 1985; 54 FR 10317, Mar. 13, 1989; 57 FR 10615, Mar. 27, 1992; 61 FR 30403, June 14, 1996; 70 FR 1621, Jan. 7, 2005; 73 FR 975, Jan. 4, 2008

I'm guessing it was a Reagan-era 1980s change, because I'm vaguely remembering some newspaper reporting from the 1980s from companies complaining that mandatory quarterly reports would lead to short-termism and earnings "goosing".
 
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