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

[2daMoon]

I don’t know if I have the nads to HODL at 500. I’ve dumped every spare penny I have into this and I’m grumpy as hell this week.

I know that I do.

Just focus on the business, rather than the SP.

Is it growing?​

Is it finding ways to cut costs and increase revenue?​

Is there anything about the business itself that lends support to bailing on the stock?​

If the answers to these questions paint a rosy portrait of the future, why take the chance by selling to one day look back at what could have been if only I'd applied logic to counter emotional decision-making?

 

[thx1139]

Elon … that’s how.

It’s always something he does that in no way relates to Tesla. And it’s happened numerous times. I love Tesla …. I don’t love Elon actions outside of Tesla. I know I’ll get a million thumbs down but really … his behavior is exhausting.

Im not naive, I realize he’s done some amazing things with Tesla and the company wouldn’t be here if it were not for him … but at this point .. Tesla is way bigger than one guy …

I have a lot of $$$ tied up in this stock …the ups and downs are ridiculous at this point but I’ve also not got blinders on …. So I stay invested and grit my teeth.

I’m hoping this will pass but really … Elon is going to be a polarizing figure and that will translate to tesla as well … I don’t know why he felt the need to buy Twitter but IMHO it’s a huge distraction.

YMMV

2 straight quarters he has ruined great earnings and production results. Not a happy camper right now. Even the whole Twitter thing makes me worried the long term damage to the Tesla brand.

 

[Brovane]

maybe uncle Leo being degrossed. didn't anyone claim he's about to go to jail? anyway, the way he described his leverage I could imagine he might get a margin call with such movements.

I still don't think it's Elon selling -- it doesn't make sense to sell as the deal will only close in ~4-6 months -- and the absorption capability of the market should be higher (i.e. price elasticity lower) after the split.

If the WSJ is correct, he faces a Margin call when the stock drops by 43% which would mean something below $600.

 

[bkp_duke]

How large is PIF’s TSLA holding?

I looked the other day, and I couldn't find any significant holdings of TSLA in PIF. I think they liquidated several years ago.

 

[PeterJA]

Elon … that’s how.

It’s always something he does that in no way relates to Tesla. And it’s happened numerous times. I love Tesla …. I don’t love Elon actions outside of Tesla. I know I’ll get a million thumbs down but really … his behavior is exhausting.

Im not naive, I realize he’s done some amazing things with Tesla and the company wouldn’t be here if it were not for him … but at this point .. Tesla is way bigger than one guy …

I have a lot of $$$ tied up in this stock …the ups and downs are ridiculous at this point but I’ve also not got blinders on …. So I stay invested and grit my teeth.

I’m hoping this will pass but really … Elon is going to be a polarizing figure and that will translate to tesla as well … I don’t know why he felt the need to buy Twitter but IMHO it’s a huge distraction.

YMMV

Remind me not to get arrested if you and your LIkers are on jury duty.

 

[mongo]

How large is PIF’s TSLA holding?

They divested most of their TSLA holdings Q1 2020. (Pre run up)

 

[Nocturnal]

Tangential to TSLA, but a reminder that we are on the right side of history, and the right side of macro trends.

Maybe it will cheer someone up a little.
But there is reason for hope: a new global energy economy is emerging, based on renewables, EVs and other clean energy technologies. And it’s in all of our best interests to diversify away from fossil fuels and accelerate the shift to clean energy as rapidly, fairly and securely as possible.

Op-ed: Russia's war on Ukraine shows the urgent need to move away from fossil fuels as fast as possible

Norway and the International Energy Agency make the argument for moving off fossil fuels, fast.

www.cnbc.com

 

[Usain]

The charts for $TSLA and $F look identical today.

 

[woodisgood]

Possibly smaller than it was a few days/weeks ago

Ha, indeed. Short of Uncle Leo getting margin called or Elon selling for TWTR, PIF seems like the primary entity that would unload both out of spite and strategically to disrupt the TWTR deal.

If they are a 5% owner we’d get to know within 10 days.

 

[30seconds]

I don't think any of it matters until its approved by regulators, correct me if I am wrong. Isn't he only up for 1bn if it all falls through. All I have read, aain correct me if I am wrong is that his offer has been accepted, so the price is set, actual sale could take months, or even more.

I'm just sick of the whole thing. Seems like it would have been a lot less painful to start a new service and call it Bark or Wood or Meow. But what would I know, I'm not a Billionaire. I am really begining to think Musk has started to let things get to his head.

Yes the breakup fee is $1B, but he is providing $21B equity commitment. I wouldn't be surprised if 10%-20% or so in cash is needed before deal close to provide a buffer in Tesla stock value. Given that the banks have to put aside these funds (e.g., they can't invest them elsewhere - maybe T-Bills) now I'm sure they put some terms for Elon to do the same.

 

[gtrplyr1]

Remind me not to get arrested if you and your LIkers are on jury duty.

Not sure I understand … just calling it like I see it …

 

[GOVA]

Elon … that’s how.

...

I’m hoping this will pass but really … Elon is going to be a polarizing figure and that will translate to tesla as well … I don’t know why he felt the need to buy Twitter but IMHO it’s a huge distraction.

YMMV

He has explained it for a few times already.

2 straight quarters he has ruined great earnings and production results. Not a happy camper right now. Even the whole Twitter thing makes me worried the long term damage to the Tesla brand.

What is the problem? Just sell if you ain't happy. There are plenty of other stocks.

 

[30seconds]

If the WSJ is correct, he faces a Margin call when the stock drops by 43% which would mean something below $600.

Only after the deal closes. Until then he is really only on the hook for $1B to twitter for break up fees and probably some break up fees to the banks as well (but not $1B)

 

[thx1139]

I know that I do.

Just focus on the business, rather than the SP.

Is it growing?​

Is it finding ways to cut costs and increase revenue?​

Is there anything about the business itself that lends support to bailing on the stock?​

If the answers to these questions paint a rosy portrait of the future, why take the chance by selling to one day look back at what could have been if only I'd applied logic to counter emotional decision-making?

Forgot

Is the CEO and Top Shareholder alienating potential future customers?

 

[StealthP3D]

Elon … that’s how.

It’s always something he does that in no way relates to Tesla. And it’s happened numerous times. I love Tesla …. I don’t love Elon actions outside of Tesla. I know I’ll get a million thumbs down but really … his behavior is exhausting.

Im not naive, I realize he’s done some amazing things with Tesla and the company wouldn’t be here if it were not for him … but at this point .. Tesla is way bigger than one guy …

I have a lot of $$$ tied up in this stock …the ups and downs are ridiculous at this point but I’ve also not got blinders on …. So I stay invested and grit my teeth.

I’m hoping this will pass but really … Elon is going to be a polarizing figure and that will translate to tesla as well … I don’t know why he felt the need to buy Twitter but IMHO it’s a huge distraction.

YMMV

True, Tesla is much bigger than Elon. But every company needs a strong leader and I know of no other leader that could have navigated this company from low to high volume production as efficiently as Elon Musk and the team he has assembled and maintains. The share price went from $200-$400 up to it's current $4,100 per non-split adjusted share in less than the last 3 years. Anyone holding through the last three years has made a killing of 10x-20x and while it's due to the efforts of the entire team, do not under-estimate the contributions of the man guiding the process and making almost all the big strategic decisions.

I have no compassion for those complaining about Elon because they are so smart they are trading the stock or playing options and not getting the returns they hoped for. Go cry somewhere else.

Cheers to all TSLA longs who have held strong and will reap the benefits of the hard work and long hours of Elon and his entire team through this pandemic, right down to the janitors who maintain the factory and keep the lights on!

 

[FireMedic]

If the WSJ is correct, he faces a Margin call when the stock drops by 43% which would mean something below $600.

Rob mentioned in his video yesterday that it’s based on the date of the close of the sale with Twitter that the 43% becomes a factor.

…And it has to drop to 43% of its value at close of sale, for him to get margin called.

 

[30seconds]

There is risk that once the deal closes, the market pushes Tesla below $600 in order to trigger margin call and drive stock down further due to forced selling.

Its a real risk we didn't have a few weeks ago

 

[PeterJA]

Not sure I understand … just calling it like I see it …

Agreed, you don't understand "innocent until proven guilty".

 

[Brovane]

Rob mentioned in his video yesterday that it’s based on the date of the close of the sale with Twitter that the 43% becomes a factor.

…And it has to drop to 43% of its value at close of sale, for him to get margin called.

Ok that makes sense. If the Tesla stock is lower, he will just have to put up more stock as collateral. From what I understand for every $100 value of Tesla stock he is allowed to borrow $20.

 

[SOULPEDL]

We have lost nothing, this is just a big MMD. No investor with any brain can pass up TSLA on sale.
Meanwhile, cash is becoming worthless so I don't see the problem. One big fake I say... I'm giving this 3 days.