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

[dww12]

After the Burry disclosure it’s time for Elon to come out.

 

[Nocturnal]

After the Burry disclosure it’s time for Elon to come out.

As what?

 

[corduroy]

That’s smart. I learned that lesson during the last dip.
I’m on margin only to pay my tax bill without selling at a price that’s unconscionably low.

The problem is that now I want to buy the dip and can’t. This is the reason to stay out of margin until you see a dip that is so far out of reality that it’s worth taking on margin.

 

[dgodfrey]

It has always seemed to me that market forces (chaos) is more likely than any particular piece of news. There are too many variables which contribute an effect and it will be the sum of all of them that is the result we see.

Each individual Tweet, Report, FUD, etc. has about the same effect as that Butterfly flapping its wings halfway across the globe.

Damn you Elon.

 

[canoemore]

I will care about Mr. Burry if and when he orchestrates scaled production of energy products, automobile products, and software products that present a competitive threat to Tesla. Until then, I don't care that he exists.

 

[UncaNed]

There is no clean break on a given day for that effect because your check to the IRS only needs to be postmarked by today. It can be sent to whichever IRS office will take the most time to open the envelope and actually process the check so it can deduct from your brokerage account.

I have a margin brokerage account I can write checks on so if a large check clears that exceeds my cash balance the account simply develops a margin balance and some interest is due. On the other side of the equation is that the cash from selling stock doesn't actually show up in the margin account for 2-3 days after the sale.

That said, my tax bill is large enough that I didn't want to risk interest or not getting the correct postmark (and I didn't want to mail it at the counter to be sure it got stamped with the right date) so I just paid last week. All of these factors should blur together to make the effect without a hard beginning or end.

How do you arrange with your broker so you can write checks on your margin account???

 

[Curt Renz]

There is no clean break on a given day for that effect because your check to the IRS only needs to be postmarked by today. It can be sent to whichever IRS office will take the most time to open the envelope and actually process the check so it can deduct from your brokerage account.

I have a margin brokerage account I can write checks on so if a large check clears that exceeds my cash balance the account simply develops a margin balance and some interest is due. On the other side of the equation is that the cash from selling stock doesn't actually show up in the margin account for 2-3 days after the sale.

That said, my tax bill is large enough that I didn't want to risk interest or not getting the correct postmark (and I didn't want to mail it at the counter to be sure it got stamped with the right date) so I just paid last week. All of these factors should blur together to make the effect without a hard beginning or end.

That's quite true that taxpayers can still write checks and send them by postal mail postmarked today. So you are right there may be some blurring as to the tax cutoff date. However, many like me file through software that asks you to pay electronically through ACH from a bank or brokerage with a chosen date no later than the deadline. In any event, I suspect that either way most people will have sold stock shares no later than today, if needed to pay income taxes. Gaming that date could be risky, as you realize. Those stock sales affect the share price on the day of the trade, not the day of settlement.

 

[JohnnyEnglish]

That's interesting, because the casting in that photo looks nothing like the skateboard rendering from Battery Day, except for the wheel housing at the upper left.

That was my first reaction BUT when I spent more time looking closely it IS just like the rendering from Battery Day. The picture is probably taken with the lens on wideangle and it has introduced some perspective distortion.

 

[StealthP3D]

How do you arrange with your broker so you can write checks on your margin account???

When I opened the account in the 1990's. I would assume most brokerages offer this, I'm with Schwab.

 

[Singuy]

I will care about Mr. Burry if and when he orchestrates scaled production of energy products, automobile products, and software products that present a competitive threat to Tesla. Until then, I don't care that he exists.

Mr. Burry should show off his short positions more, like pay for some bill boards or run a superbowl commercial. WSB are always on the hunt for the next short squeeze.

 

[traxila]

This is a followup interview on The Metals Company, the deep sea polymetallic nodule collectors. They claim they have enough metal in this one area to provide for 280 millions BEVs. And they drop Elon's name twice, so I guess he definitely is interested in the nickel et al they could provide.

https://www.sec.gov/Archives/edgar/data/1798562/000121390021026200/ea140852-425_sustainable.htm

The interview is short and an interesting read overall, especially the bit about SPACs and the documentation they usually provide

"Scott: One of the things we loved about this transaction, because we looked at so many SPAC deals and look there are a lot of people that have been very successful and we wish them the best, but they would only give you access to five or 10 documents, and Gerard and his team gave us over 300 documents to review. Deals with the regulator deals with core partners like Musk, Glencore, who has a firm off-ticket agreement with the company."

 

[ByeByeJohnny]

Don't expect any price cuts on the Cybertruck.

Just saw a story (sorry, no link in English) that the price of steel has gone from €550 per ton in July 2020 to €1150 per ton today. An average regular car, ie not a Cybertruck, uses 900 kilogram of steel.

There are different kinds of steel but this is for the kind that is used in most cars.

So cost for steel in average car is up €540. I assume Cybertruck would be worse.

 

[avoigt]

Burry is half a billion short on Tesla

That can turn into an expensive trade for him

Michael Burry of ‘The Big Short’ reveals a $530 million bet against Tesla

Michael Burry is long puts against 800,100 shares of Tesla or $534 million by the end of the first quarter.

www.cnbc.com

 

[FireMedic]

How do you arrange with your broker so you can write checks on your margin account???

Ask them for a checkbook.

 

[Knightshade]

That's quite true that taxpayers can still write checks and send them by postal mail postmarked today. So you are right there may be some blurring as to the tax cutoff. However, many like me file through software that asks you to pay electronically through ACH from a bank or brokerage with a chosen date no later than the deadline. In any event, I suspect that either way most people will have sold stock shares no later than today, if needed to pay income taxes. Gaming that date could be risky. Those stock sales affect the share price on the day of the trade, not the day of settlement.

As I mentioned earlier, the smartest way (in terms of maximizing both financial value and length of time to pay) is to pay using a credit card whose reward for the spend is greater than the fee for paying that way.

(even more ideally- paying with multiple cards racking up signup bonuses on each- you can get "paid" thousands of dollars in rewards for paying your taxes this way each year).

As an added bonus, it also gives you (depending on card closing dates) anywhere from 3-7 extra weeks beyond the IRS deadline to actually "pay" the bill with real money.

 

[buttershrimp]

Not advice. But I’d trim as needed and ride the rest. If you can book some losses (check wash sale rules) that’s a good move too. Eventually TSLA will be worth far more than $900/share

This is great "not advice", I'm realizing that capital loss offsets future capital gains... just wouldn't be able to buy stock for a while.

 

[oldTAVguy]

As what?

Klaatu, who else?

 

[elasalle]

Burry is half a billion short on Tesla

That can turn into an expensive trade for him

Michael Burry of ‘The Big Short’ reveals a $530 million bet against Tesla

Michael Burry is long puts against 800,100 shares of Tesla or $534 million by the end of the first quarter.

www.cnbc.com

https://twitter.com/x/status/1394357797169598465

 

[Chunky Jr.]

I've seen several articles attributing the drop in the stock to Tesla's purchase of bitcoin, but I don't buy that. Other tech stocks are also not doing great. And if large Tesla shareholders have a problem with it, you know they would be calling Elon and/or Zach and letting them know how they feel.

 

[Chunky Jr.]

This is some good perspective...

https://twitter.com/x/status/1394363127022727173