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Short-Term TSLA Price Movements - 2016

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Actually having been in sales for a few years, Elon has what it takes to make any salesperson great--that is a great product that the customer easily understands why it is very beneficial to them and a very real faith that the product is what the customer truly needs (it's difficult to fake sincerity over the sales process). The ability to communicate the concept so that a person comes away wanting to purchase the product if they can, is basically what it takes. The rest is secondary.
excellent post. most people will learn in a relatively short space of time if your product sucks.
 
Speaking of aspirational brands, as my social circle's resident Tesla expert, this morning alone I have been contacted by not one but two young people who want to work at Tesla and want to ask me how they can go about doing that. One is 14, the son of a small but influential coachbuilder in LA, and wants to be an engineer; the other is 18, just graduating high school, and wants to sell Teslas.

Tesla is THE brand which holds the interest of young people, at least here in California, but I'm pretty sure everywhere else too. Obviously this is a long-term thing, but it becomes less and less long-term with each passing day - and with the coming release of Model 3. Just about everyone in their mid-late 20s and 30s wants a Model 3, to the point where it's going to start getting boring with everyone having the same damn car as each other.

you're correct but there is so far to go. People may get bored of a Tesla but there are no other car companies playing in the same field in the short/medium term. I think the sun will be shining for at least 5 years. Tesla is also innovating so fast that this could be significantly extended.
 
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Max-pain for TSLA is sitting at 215 for this Friday, and so we might see the tractor-beam help the stock a small bit in tomorrow's afternoon hours. Add the tendency of TSLA to show signs of a wanna-be breakout such as yesterday, plus anticipation of the typical Monday-morning buying streak when some optimism is in the air, and we might see a climb on Friday (if the broader markets and FUD-slingers behave themselves).

If it stays above 209 this afternoon, might be worth some short term calls. Closed up to exactly Max-pain last Friday if i remember correctly.
 
From member bignikku's X pickup this morning


"The mix of S and X in assembly has changed from before. Last time I went to the factory for the exclusive preview, there 3-4 S’s and followed by an X. It was actually reverse right now, so a lot of X’s were being assembled. When we were on our way to the pickup, three trucks were departing with new cars, majority of them loaded with X’s. Production is ramping up again which is great for all you folks waiting out there. There were many many X’s that were finished already. Just wait a little longer folks, it is worth it."

Model X May Deliveries
 
Consider who actually owns the stock, I'm not even sure that actual investors typically move the price much. It is mostly just traders guessing momentum.
I am worried the volatility of this stock is really exaggerated, along with some others, of course, by ultra-fast trading. JHM or some of you others sophisticated at statistics might be able to differentiate such trading from other retailers like myself. There is a trading house trying to list another exchange which is immune to such. See: Michael Lewis Reflects on His Book Flash Boys, a Year After It Shook Wall Street to Its Core and About | IEX Group | A Market That Works For Investors
 
If it stays above 209 this afternoon, might be worth some short term calls. Closed up to exactly Max-pain last Friday if i remember correctly.

TSLA closed below max pain last Friday, but max-pain helped lift TSLA to the next highest mutliple that was achievable. It's interesting watching the battle for 209. Shorts don't want to see us close in the green today and we've seen this trend much of this week, where shorts bat down the SP when it hits green after a long climb through the red.
 
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About $10B in market cap. Otherwise, no difference. /grumble. I don't buy the "it motivates the team" argument. I think people are completely comfortable with the concept of internal vs public goals, and the fun of beating public goals.

No doubt it has hurt the share price. Totally agree on that. But it is still important to not forget the exceptional growth rate even if it is lower than guidance and many do forget that and needs to be reminded :).

Elon strikes me as someone that wants to tell the truth and answer honestly. Even in ER calls he kinda want to say things he should not like how much battery prices have been dropping. So I think maybe it is not as easy to have one internal and one public goal but it would be beneficial for the SP.

I don't think this will change, just as Apple beat their guidance every time when they had their iPhone run I think Tesla will miss it way more often than not.
 
Tesla stock was so shaky all day long. Sounds no buyers however low it is!

Another way of looking at it is there's a buyer for every transaction that took place today. Short thesis is getting shaky because they have trouble holding their dips and it looks like the downtrend is running out of steam. Glass half full or half empty?
 
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I am worried the volatility of this stock is really exaggerated, along with some others, of course, by ultra-fast trading. JHM or some of you others sophisticated at statistics might be able to differentiate such trading from other retailers like myself. There is a trading house trying to list another exchange which is immune to such. See: Michael Lewis Reflects on His Book Flash Boys, a Year After It Shook Wall Street to Its Core and About | IEX Group | A Market That Works For Investors
Haven't read this yet, so ignore me if this is not what IEX is proposing but I do want to point out that any market without automatic algo market making means much wider spreads and worse prices and liquidity to retail investors.

For all the crap high frequency trading takes in the press, there are a whole lot of benefits from it. There are almost certainly bad actors doing things they shouldn't be, but keep in mind market manipulation is illegal and these firms are under tons of regulation and scrutiny. It's even a violation to not have tools in place to detect irregularities even when a firm hasn't caused any.

Tldr; high frequency trading is not the evil thing people assume it is and it doesn't harm retail investors. It does however allow skittish retail investors and traders to cause a ton of volatility because of the increased liquidity.
 
In addition to my Negativity Scale, I also check on Elon's tweets to determine his level of irritability.

He's let everyone know when he thought the stock was dearly priced. He also gets perturbed when the stock gets hammered, and negative articles get printed. Lately he's sent out a couple of tweets showing that he's irritable, mainly with the LA Times article and the 'overrated' article.

I believe he thought that the stock would rise, not fall, after the CC. He's pissed that the market doesn't believe him. That bodes well for us.
 
Tesla shares essentially traced the Nasdaq Composite today, which is often the case on days without significant Tesla news. Announcement of a favorable financing deal could kick the stock nicely upward.

I have a question. It seems to me from reading on this board that the capital raise is potentially the single most important factor in the near term, at least until we get delivery numbers for Q2 in early July.

Obviously, Tesla needs a large amount of money on the order of several billions to fund the Model 3. Here are the possibililties I see:

1. Elon chooses to do a capital raise now. The share price is roughly 207-208 ish which is lower than the 242 SP on the last capital raise. This would represent a "down round" which would dilute shareholder value. As far as I know, Elon has never done this before in any of his companies. Do you see this as a possibility? Why didn't Elon raise before the Q1 CC when the stock price was approaching $270? Do you think he thought that the share price would increase after the revelation of a goal of 500K cars in 2018. Or does he have another plan?

2. Elon chooses to wait till after Q2 delivery numbers which, if good, could elevate stock price. Do you think this is a possibililty or is it too risky given that macro situation could crash and share price could actually drop further.

3. Elon sells a minor stake in the company to a big player (e.g GOOG). Is this a possibility? Elon is of course good friends with Sergei and Larry. Tesla's CFO is from GOOG. A minor investment in Tesla would allow Elon to keep control and allow GOOG to put their money to a good use with potential for high reward. As you know, Larry Page once said he should give all his money to Elon when he dies. A 3 billion investment is a small amount of money for GOOG but would turn this ship around in no time. Most importantly, it would provide TSLA with an extremely powerful ally which, in my opinion, may be necessary to combat large interests such as oil, car dealers, car makers, etc. I believe this would also send a signal to the shorts that Tesla will survive and fluorish and most will cover immediately leading to short squeeze.

Related question: If a large company takes a minor stake in Tesla, does this have to occur at the current share price or could they do it at a higher price (say 250 or 300) and avoid a down round of financing. Obviously, when companies completely buy out other companies, the acquisition price is typically higher than the share price. Does this also apply for minority stakes? Of course, the price will go much higher just on announcement of such a partnership.

I thank you in advance for your insight.
 
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I'll repeat this question again since I think most people didn't see it. Has anyone heard anything about the Gigafactory opening party? If you've received an invite can you say if you had to sign a NDA for any info about the event? (Is there such a thing as an NDA for info about the date of an event or any other info provided?)

I think I remember it being mentioned that it would be at the end of May. The shareholder meeting is either on or around May 31st. I don't see a specific date anywhere be Google says its on May 31st or June 8th (estimated).

Based on historic precident, would Elon make this event before or after the shareholder meeting?
 
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