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Agenda
We we all have an agenda. long term investors, speculators, and the media.
i believe cnbc had an agenda when they asked the question. I'm crying ********, not at the response, but rather the question.
We we all have an agenda. long term investors, speculators, and the media.
i believe cnbc had an agenda when they asked the question. I'm crying ********, not at the response, but rather the question.
Perhaps both parties to that conversation had an agenda to say what they said. Cnbc agenda is irrelevant to me, so I prefer not to speculate on it.
I find it highly unlikely that Elon just spoke off the cuff on a subject like that. I have no doubt that he made an honest comment, however his choice to make a comment on share price is very telling. He could have made a different choice, said something different, to avoid voicing such direct explicit judgement on sp.
The best way to understand someone's agenda in making a particular choice is to look at the achieved outcome, and the agenda will likely reveal itself. People make rational choices, to achieve what they want. Elon's comment has consequences, it moved the price. Many traders got affected by that comment, for better or for worse.
Perhaps Elon would like to shake off short term trading in the stock.
Elons agenda, in my speculative mind, is that he maybe prefers less price volatility, so his comment was meant to temper its rise. If sp rises too much, then it is likely to go down more forcefully. It is easier to control the rise than the fall. Going down can be dangerous as it might just spiral out of control in unfortunate set of circumstances.
Causalien
Prime 8 ball Oracle
Diarmuid's furrowed brows was classic when Elon started talking long term. It was a look of :"Oh ****, better get ready for some crazy thing that he's going to say" Then later unfurrowed and the upside down half moon lips giving it approval "That's actually good and sneaky, I don't have to do damage control"
Auzie,,
Have you stopped beating your wife?
Everyone seems so convinced at Elon's intent. If as a reporter, I know that my subject has a propensity for honesty, and I ask a very subjective question, can I frame the response to achieve my ends.
I have complete faith in Elon and Diarmuid, and complete contempt for the financial media concerning Tesla Motors. Fire, Fire, Fire.
Johan
Ex got M3 in the divorce, waiting for EU Model Y!
Yup. Just as Tesla has reinvented so many technological concepts as well as business concepts (direct sales, no price haggling, reservations, no-profit service, long distance "fuel" pre-paid forever etc.) so is Elon reinventing how a CEO handles the media. Honesty is the new black. Others will catch on after being sceptical at first.
JRP3
Hyperactive Member
Elon made an honest and direct answer, which happened to be right on target. I have no problem with that. Of course I also dumped some shares at $288 before Elon made his statement because I also felt the stock had gotten a bit ahead of itself, so maybe I'm just happy that Elon "proved me right" :biggrin:
It seems to me that Elon’s larger concern regarding the stock is that employees (current and future) receive stock and options benefits when at a somewhat modest price that is likely to appreciate at a relatively measured pace. That stock benefit is a large part of the package to entice talent. Having and keeping top talent is paramount to the success of the company. Also, if another subsequent share offering is ever planned, Elon may want those who might participate to find the current price attractive with the potential for great increases.
Elon appears to like being in control of all the larger matters related to Tesla Motors. Of course he can’t fully control the share price, but he does have influence. Reporter LeBeau has asked Elon that question before, and I suspect Elon was prepared for it. It looks as though Elon said what he wanted to say in an attempt to keep a lid on the share price for now. This was almost certainly with the belief that the price will be much higher in the future, but with a desire that the rise be steadier than it has been.
Elon did say at the last earnings report conference call that he is not yet showing all of his cards. He may want to show them on a calendar of his choice to support the share price at a pace he feels is most beneficial for the company.
Elon appears to like being in control of all the larger matters related to Tesla Motors. Of course he can’t fully control the share price, but he does have influence. Reporter LeBeau has asked Elon that question before, and I suspect Elon was prepared for it. It looks as though Elon said what he wanted to say in an attempt to keep a lid on the share price for now. This was almost certainly with the belief that the price will be much higher in the future, but with a desire that the rise be steadier than it has been.
Elon did say at the last earnings report conference call that he is not yet showing all of his cards. He may want to show them on a calendar of his choice to support the share price at a pace he feels is most beneficial for the company.
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I believe that a skyrocketing share price may be a distraction to the employees.
Some have mentioned the seeming inconsistency in saying the stock is a good price for the long term, and saying it is a bit too high. Literally, yes it was inconsistent, but looking at Elon's full statement (including his rephrasing of his point), one can sort out a consistent point that might well reflect Elon' thoughts. Elon clearly choose to immediately restate "the bit too high" part as the price being good in the long term but less clear in the short term. I think his discomfort is more about volatility than price/valuation. His comment could be said about the price of the stock in relation to the long and short term for any valuation based investment... you can have confidence that your investment will turn out well long term, but short term, not so clear. Indeed, this general point about all investing based on valuation is summed up in this line from Benjamin Graham passed on via Warren Buffett, "in the short run the market is a voting machine, in the long run a weighing machine." I suspect Elon sees $280 or so as good price for the stock (on valuation), but sees the stock racing up $60+ in 5 weeks as "a bit much" (to sort of paraphrase his comments).
Elon has (and knows he will likely seek to do so again) pointed out that things are getting carried away in the market on "bad news" about Tesla and interconnected media sensationalism. His pointing out the "short run voting machine, long run weighing machine" irrationality of markets when it's working to TSLA's favor creates credibility if he chooses to point this phenomena out when it is working to TSLA's detriment (I say TSLA rather than Tesla, because as to Tesla, I don't think he finds the volatility in either direction helpful).
Jack, yes, it's best that Elon consider the short term and long term concerns of the business, which parallel an investor's interests. You wrote that you have "long term investments, and "short term speculations."
I don't think you'd suggest there's a case for Elon to be concerned about the success of anyone's speculations on the stock.
I think the only concern Elon may have about speculation on Tesla's stock, is that for some time there has been an outsized amount of speculation on the stock feeding off of and back into the stock's volatility. As discussed the past few days, that volatility is something Elon sees as a challenge to Tesla and it's mission.
Elon has (and knows he will likely seek to do so again) pointed out that things are getting carried away in the market on "bad news" about Tesla and interconnected media sensationalism. His pointing out the "short run voting machine, long run weighing machine" irrationality of markets when it's working to TSLA's favor creates credibility if he chooses to point this phenomena out when it is working to TSLA's detriment (I say TSLA rather than Tesla, because as to Tesla, I don't think he finds the volatility in either direction helpful).
Jack, yes, it's best that Elon consider the short term and long term concerns of the business, which parallel an investor's interests. You wrote that you have "long term investments, and "short term speculations."
I don't think you'd suggest there's a case for Elon to be concerned about the success of anyone's speculations on the stock.
I think the only concern Elon may have about speculation on Tesla's stock, is that for some time there has been an outsized amount of speculation on the stock feeding off of and back into the stock's volatility. As discussed the past few days, that volatility is something Elon sees as a challenge to Tesla and it's mission.
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Regarding his response to the reporter, Elon may have hoped the immediate effect would be to shake out the weak longs (speculators) and encourage more short sellers. This would have been expected to lead to an even more solid base of strong long-term unshakable shareholders, while maintaining a sizable short interest that can be tapped for squeezes.
Causalien
Prime 8 ball Oracle
I hate it when he does that. Every time I somehow end up with more shares afterwards and TSLA just occupies a bigger share of my net worth. My money management alarm bell has been ringing non stop since the F***
I do not have a problem with what Elon said.
Phil Lebeau knew the context of the setting (Gigafactory news conference), he asked a question knowing what the response would be. Lawyer 101, I'm not impressed.
He is now using that response to manipulate the market. If you question that, count the number of times this is headlined in the coming weeks.
I don't have a problem with Elon, I have a problem with Phil Lebeau.
Instead of the media focusing on the Gigafactory, we will hear Elon thinks the stock price is too high, over and over. I think that's garbage.
Phil Lebeau knew the context of the setting (Gigafactory news conference), he asked a question knowing what the response would be. Lawyer 101, I'm not impressed.
He is now using that response to manipulate the market. If you question that, count the number of times this is headlined in the coming weeks.
I don't have a problem with Elon, I have a problem with Phil Lebeau.
Instead of the media focusing on the Gigafactory, we will hear Elon thinks the stock price is too high, over and over. I think that's garbage.
mershaw2001
I'm short the short sellers
Well i am not loading up on shares yet. When tesla loses its momentum, as I think it did here (higher volume, down 15 dollars) it takes a while to build it back up. Tesla is all about overreactions, and we haven't over reacted to the downside (265?) so I'm not going to increase my position beyond what I normally have.
Maybe part of it is that I'm tired of waking up scared that I've got too much and tesla's going to fly downward again.
JRP3
Hyperactive Member
Phil has been one of the most consitently fair and mostly pro Tesla reporters out there. I have no problem with a reporter asking a CEO about share price when it's near record highs.
Don't forget CNBC is not a car network but a financial network. The stock price is the only topic.
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