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

[Christine69420]

Did something heretic today - I had to sell some. Unfortunately, to pay tax bill

You are not alone. And I am on the final stretch of buying a house...

 

[jbcarioca]

On Tesla and the Mining Industry -

• I haven't any intrinsic problem with Tesla considering indirect involvement with a resource extractor, as long as
  • Such were done very strictly as a hands-off infusion of capital so that MiningCo thus were enabled to proceed with some project(s)
  • The capital involved were not otherwise being repurposed from the next Gigafactory, Service Center, SpC expansion or other CapEx that are and should remain the heart of Tesla Inc.
  • "Well, it's better than paying a dividend" is weak but still, barely, a positive reason
• The most important words above are the hands-off pair
• However, the resource extraction industry is one with an entirely different capital allocation structure, a different ROI, ROC, IRR and a very different long-term prospect: remember, one is pursuing a diminishing asset base not just with any single deposit but with the entire universe of possible mines an entity can pursue, and that getting the bestest the quickest (ie, pursuing the richest vein, etc. - subject to other parameters) always provides the greatest ROC for a mining company...and this is wholly foreign territory for a manufacturing enterprise.
  • And, therefore, the extent to which Tesla WERE TO enter directly, not indirectly, into the extractive industry is the extent to which I would have to reconsider my own investment in this company to a degree I never have had to do. And hope never to have to do.
  • There is another way for me to explain this. Given our investment in TSLA, I always look at the company and how it is proceeding as if I truly were a member of the Board of Directors. Do I voice my approval or disapproval to such an action? This has stood me in good stead over the near-decade of our investment in this company

If my source is accurate, all these deals were structured to be long term conditional take-or=pay contracts. I called him also a few minutes ago and learned that in several cases of which he knows, the Tesla deals specified quite precise refinement and processing standards, that Tesla itself wold not do. Hence, the public version says Tesla investing in X metal with Y company and Z location. So Tesla is investing. They have been doing similar things now for several years. They aren't entering the mining business, not even Bolivian Atacama lithium extraction, pretty easy except for the location. For those who are unaware, the Atacama is undergoing a major lithium extraction boom. Tesla is alleged to be involved in more than one of those projects, too. I have no solid source about those.

The Lithium Triangle: Where Chile, Argentina, and Bolivia Meet

The lightest of metals may be causing the largest of impacts. Lithium, which powers [https://www.livescience.com/28579-lithium.html] our phones, laptops, and electric cars, is essential to our battery-driven world. The demand for lithium has rapidly increased, as the global market’s annual...

hir.harvard.edu

 

[MP3Mike]

And, therefore, the extent to which Tesla WERE TO enter directly, not indirectly, into the extractive industry is the extent to which I would have to reconsider my own investment in this company to a degree I never have had to do. And hope never to have to do.

Didn't Tesla already say, during battery day, that they had purchased the rights to a 10,000 acre plot of clay deposits containing Lithium in Nevada, and that they were developing a way to extract it using salt? So they have already directly entered into the extractive industry.

 

[ggies07]

Didn't Tesla already say, during battery day, that they had purchased the rights to a clay deposit containing Lithium in Nevada, and that they were developing a way to extract it using salt? So they have already directly entered into the extractive industry.

Yep. And there is a great video on this topic from The Limiting Factor:

 

[Prunesquallor]

For those who enjoyed Chicken Genius (@pakpakchicken) on YT, bad news. He decided to hang it up.

 

[1101011]

I don't want to start a rumor, nothing to go on here. Just feels like we've been here before. For all I know, a split can't happen w/o a vote, so just sharing.

As I understand it, the Board can vote for a split (even greater than available shares) pending shareholder approval.

 

[StarFoxisDown!]

As I understand it, the Board can vote for a split (even greater than available shares) pending shareholder approval.

Correct, they can announce a split pending shareholder approval at anytime they want. That’s literally what google and Amazon did with their splits

 

[StealthP3D]

Didn't Tesla already say, during battery day, that they had purchased the rights to a clay deposit containing Lithium in Nevada, and that they were developing a way to extract it using salt? So they have already directly entered into the extractive industry.

This is a good idea. Although mining doesn't historically have a large return on investment, it can help Tesla scale faster and Tesla will largely have their pick of deposits by getting in early. We are at the very early stages of electrifying transportation and adding energy storage to the grid and the required volumes of raw battery materials will be so huge it makes sense to kick-start the growth of the industry now. The active mines can be sold off once the rest of the world has woken up to the new reality of just how many batteries will be required and how quickly the industry is growing.

The world is full of sites with likely and proven reserves of many required metals/minerals that are just sitting there because the market doesn't currently exist for them. In a handful of years these same sites, once active, will be able to be sold at huge profits. It might not be the business Tesla wants to be in but they certainly have cash reserves that are growing so rapidly the money cannot all be re-invested into EV and energy storage production capacity, not from a practical standpoint (and not to mention the hard limits they will run into if there are not enough raw materials down the road).

Acting now will accelerate the mission while generating very good returns overall, once all is said and done.

 

[M|S|M MYP]

Market taking a dump....Paper handed holders

 

[thesmokingman]

Market taking a dump....Paper handed holders

Profit taking.

 

[Cal1]

Correct, they can announce a split pending shareholder approval at anytime they want. That’s literally what google and Amazon did with their splits

Did we supposedly get an proxy vote last time it split? I never saw one. I have gotten other Tesla voting emails.

 

[M|S|M MYP]

Profit taking.

aka Paper handed holders

Next catalyst up on deck...Giga Austin.

 

[thesmokingman]

aka Paper handed holders

Next catalyst up on deck...Giga Austin.

Nah, paper hands are sellers on fear when its ALREADY going down.

 

[MP3Mike]

Did we supposedly get an proxy vote last time it split? I never saw one. I have gotten other Tesla voting emails.

No, because the board was already authorized to issue that many shares.

 

[M|S|M MYP]

Nah, paper hands are sellers on fear when its ALREADY going down.

got it...aka Meet Kevin

 

[ZeApelido]

I am assured by a seemingly knowledgable attorney who works extensively with large mining companies that Tesla has directly or indirectly involved in at least six mining projects in Peru, Bolivia and Brazil already in place.

TSLAQ already informed us of Elon's plan to overthrow the Bolivian government.

Now I'm not so sure @jbcarioca isn't involved in an Elon attempt to take over the entirety of American do Sul.

 

[jbcarioca]

TSLAQ already informed us of Elon's plan to overthrow the Bolivian government.

Now I'm not so sure @jbcarioca isn't involved in an Elon attempt to take over the entirety of American do Sul.

No, not so, We only want a little bit, say Mercosur.

 

[SOULPEDL]

got it...aka Meet Kevin

Or last chance provided to exit short positions before it bounces right back. What's an upside down bounce called?

 

[ZeApelido]

Psychology of TSLAQ: As the stock price increases, one must further reach toward nonsensical theories to back up their idiotic belief system.

When you use Nikola as a model of what you think a company should be, you're screwed.

https://twitter.com/x/status/1506685164285423617

 

[Prunesquallor]

Maybe this was shared earlier, but this close-up of Elon dancing in Berlin (or thereabouts) with the Drone was worth the excitement all over again.

https://twitter.com/x/status/1506323483059490817

(Edit: @elasalle beat me to it!)

Drone-fu.