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

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So what's the next step on China from the powers that be? That's my question.

In addition to relaxing foreign ownership rules just for Tesla, the Vice President of China sat down with Elon one-on-one, a honour that’s mostly given to heads of state, and offered him permanent residency.

What more do you expect, make Elon a member of the politburo???
 
:shrug:

Is it possible for an infrastructure to be set up to tack-on with the current LTE infra, that AT&T provides, with Starlink as kind of a BGP without the Border solution? It's similar to what Twilio and Google Voice provide trying to obfuscate the provider from the super network as you roam. Thus, you not only have redundancy of the connection between space and land networks, but you also don't need to worry about line-of-sight past what's already available (and could grow pretty easily). I'd assume that it's pretty significant from a ISP service for something like this that could generate a lot more revenue cross-country, roaming, and a variety of IoT use cases.
Starlink target market:
Government, I would think every diplomatic mission in the world would want to connect to this and bypass terrestrial networks.
Military has been pushing for high speed networks. Mobile high speed networks for all forward troops has been very expensive for the military.
Cloud service backbones: Amazon is discussing deployment of a competing network. Microsoft Azure and other content delivery networks are always competing for capacity and latency edge vs market.
Finance: market makers will pay a premium for faster network time. Saving a millisecond can allow a high speed trader to pick up millions of penny’s hundreds of times a day.
5G wireless backbones could be deployed in single kits without dependency on fiber networks. Helpful even in urban areas, this would reduce the cost of cell networks in rural markets.
Africa and much of Asian markets have underdeveloped fiber and last mile network connectivity.
Airlines: cheaper high speed services would be lucrative. There are 100,000 commercial flights every day globally.
Cord cutters: ATT and Comcast are not universally popular to put it mildly. For similar service, many people would pay a premium for an alternative.
 
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It’s not simply a question of using or not using margin. It’s a question of degree.

If you're extremely skilled and advanced, yes, you can use margin competently and effectively.

IMO as an investor with 30 years experience, it is even easier to screw up massively and put yourself in a giant hole with margin than with options. For options, they require that you certify years of experience before they will allow you to do advanced options trades. But they'll allow anyone off the street to use margin. This isn't right in my opinion.
 
How do you guarantee that you won't get margin called and/or the average gain over the holding period exceeds the margin rate? There are no guarantees....
There are never guarantees.

You just have to make a judgment if the probability of the rewards outweigh the probabilities of the risk,

You have to make this same call if you’re trying to decide on investing 1% vs. 2% of your net worth into TSLA.

Margin is one more tool in the toolbox.

I have a friend who’s worth is in the 10’s of millions and decided to use margin to bridge over a few months to avoid sales for tax consequences. I think it was a wise use.

I just have trouble with absolutes like “you should never use margin.” That’s like waving a red flag in front of me. Or like saying trains don’t work very well to @neroden :)
 
I work with chinese router ODM... designing new HW in my day job ... we are not stopping or even pausing due to Trump or any of his BS ... he will solve this issue with China because if the stock market continues this drop he has no chance in 2020...
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Trump doesn't think far enough ahead to look to 2020. He has Narcissistic Personality Disorder, and one of the symptoms is inability to fear any consequences which happen in the future. He is literally just going day by day.

This is why he's ordering the IRS and the Treasury Secretary to break the law and to be in contempt of Congress in order to conceal his fraudulent tax returns from Congress. If he'd had one ounce of anticipation, he would have realized that NY State would just hand the returns over, which they are doing, so the entire lawless coverup at the federal level won't even *work*. Most crooks don't bother to do coverups of things which are going to come out anyway. But Trump is unable to think about future consequences due to his behavioral disorder.

So he will continue to make a complete mess of China business relations. I think most people in the Administration and, of course, Congress, will try to stop him, and China knows this, so things may get resolved. But anyway, my point is that your analysis is wrong: Trump will not solve the issue because he simply doesn't think that far ahead.
 
I’ve heard several times on here that a short squeeze is not possible due to unlimited naked shorting. Ihor seems to think that naked shorting is not happening on a large scale except intraday market making. Is he wrong? Ihor Dusaniwsky on Twitter
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The fail-to-delivers are a matter of record. They aren't a large percentage of the trades or of the short sales. But they ARE much larger than they should be (they should be nearly zero, and there are a lot more). It would be worth tracking them down. I currently suspect that some naked shorting is done at key "bear raid" moments to attempt to drive the stock price down even more, but that it probably isn't done routinely.
 
How do you guarantee that you won't get margin called and/or the average gain over the holding period exceeds the margin rate? There are no guarantees....
One of the few ways to reduce risk of margin call when using margin is diversification into uncorrelated assets. Of course, diversification drops your holdings in whatever stock you thought was exceptionally great, so you end up losing out. If you're trying to bet heavily on one stock, concentration makes more sense than margin + diversification.
 
But when you consider realpolitik, this won't happen. The companies will be bailed out - infact almost all auto companies will be bailed out. VW, BMW, Merc are too important for Germany. Fiat for Italy. Toyota, Honda, Nissan for Japan. Hyundai/Kia in S Korea. etc. Only the smaller players could have issues - but they are already being bought out (like Mitsu, Volvo etc).
Don't be so sure. Nobody saved the Australian auto industry.

VW is seriously going into EVs, so it'll be in a position to make a case for a bailout and get it. Fiat? They've got *nothing*, and I'm not so sure Italy cares whether they go under.