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

[TrendTrader007]

Trendtrader007, I’ve always appreciated your posts and thank you for keeping positive when Tesla has been in the dumps on several occasions in the past.

Just because I want to learn from your experience, do you take into account the tax implications when you decide to realize your gains? Or is it that once you sell like you mentioned you did earlier in the year, you’ve already realized the BIG tax bill so it frees you up to make decisions without much concern for additional taxes incurred? For me in CA, over 50% goes in total taxes for short term large gains so I can lose and have lost big in the past when I make a mistake.

In my personal experience every time that I have tried to realize long-term capital gains I have been burned. this year I realized significant profit right in the beginning of the year in January so I I already owe approximately 47% of that in taxes
I figured that I stand more to lose by holding a position rather than not worrying about the tax implications and just trading it.
Last week on Thursday I was watching the market and I have this sinking feeling that Tesla had topped so I immediately sold all my positions and then to 100% cash without worrying about the tax implications of it and I am really glad that I did
Bottom line I do not worry about the taxes if I get my trade-in right
As far as Tesla is concerned I am much bigger of a bull than any of these guys who are pointing fingers at me. I trade in size. I remain a Super Bull on tesla

 

[mickificki]

 

[brantse]

Perhaps 7:00 AM move is due to retail. I had some orders in to buy in the premarket, confused as to why they weren't going off. Sure enough, they hit at 7:00 AM. I had assumed that my brokerage (TD Ameritrade) started trading at 6, but now see that it's actually 7.

 

[elasalle]

Nothing new here, but ..

Tesla isn't a car company, and it isn't a tech company — it's a new GE for the 21st century, and it's just getting started. Here's how it could dominate the global business world.

Tesla isn't a car company, and it isn't a tech company — it's a new GE for the 21st century

This is Tesla's destiny — to supplant the 20th century's most important technology conglomerate and establish itself as the most important technology conglomerate of the 21st

 

[LN1_Casey]

My feeling is we have some buying opportunities coming up soon. But look at that list of catalyst for the stock going forward. We are once again in a position where we understand Tesla is going to shock people with its rapid expansion. The stock price is irrelevant unless you’re playing options. It was the beginning of June when we went below 180 just a year ago!

Keep the SEC away and Musk onboard and any price between 350-900 is irrelevant. I hope investors don’t get discouraged too early this year, or they will have to sit back and watch a repeat of last year

Personally I hope it floats above 850 around October, since that's when I'll be liquidating long term gains for my Tesla Model S purchase. What it does before and after that is just buying opportunities.

But if it doesn't, them's the breaks.

 

[LJS22]

Reading through the upgrade notes from MS I see many of the things Cathy and Ark alluded to years ago. Regarding Tesla it’s best to follow Ark for updated tailwinds for Tesla, as Morgan Stanley is catching on late. I think they purposely waited for a bad week for this upgrade as it makes them look like real analyst versus jumping on a wagon.

 

[Artful Dodger]

View attachment 538510

Based on success in the fine art of balancing public priorities in California since March 24, I'd be disinclined to offer up $160M in State income taxes (12.4% of $1.3B) as things stand. Literally their loss.

 

[joh01652]

FTFY. Electrick went over to the dark side when they discovered 'clicks'. Their "Headline" clickbating was so transparent it was laughable, except that redFay was lining his pockets by bashing Tesla. Reprehensible site.

I'm not very knowledgable about the inner workings of the internet, but it's my understanding that 'clicks' are what the vast majority of websites use to quantify user engagement and bring in ad revenue; isn't that basically how all news websites work to show advertisers they reach X number of people? I guess I don't see how Electrek's use of clickbaiting is any worse than other news sites. Fred ends most of his articles by disclosing he's long TSLA. A man's got to eat after all, so I don't see anything wrong with clickbaiting since everybody does it.

I just learned about EVs in general in 2016 when I took my first California assignment (I'm in traveling healthcare, I live in Arizona where there are few EVs). I was sold on EVs by a worker who had a Leaf. He put me on to Electrek. Long story short, TSLA was the first stock I ever bought, and Tesla was the first non-ICE vehicle I ever bought, due in large part my browsing of Electrek. That has to say something positive to you about the site. Electrek isn't as bad in their EV coverage as, say, the New York Times (which is truly reprehensible given their large budget and journalist pool). I'm very much of the opinion that Electrek is a huge net positive for both EV adoption in general, and Tesla/TSLA in particular.

I always look for your postings because they are well-reasoned, insightful, and informative--what are your top two sites for Tesla news that gives an unbiased inside look at the company?

 

[joh01652]

Google "Clickbait". That's what Electrick does now, since they figured out there's profit in it.

Yes but all sites do that--what's the difference?

Here's an example from today of the kind of trash NYT has been putting out recently: 3 Hospital Workers Gave Out Masks. Weeks Later, They All Were Dead.3 Hospital Workers Gave Out Masks. Weeks Later, They All Were Dead.The coronavirus has taken a steep toll on the often-invisible army of employees who keep New York hospitals running.

Just saying, everybody's doing it.

 

[InDaClub]

Musk criticized for ‘fascism' rant, but fans love it

On Ford Motor Co.'s earnings call last week, CEO Jim Hackett said this: "Safety is of the utmost concern in a pandemic; yours, your loved ones and the people you work with. The communities you live in and amazingly all other humans you interact with, their safety guarantees your safety."

Elon Musk had a much different message on Tesla's earnings call the next day: "This is fascist. This isn't democratic. This isn't freedom. Give people back their goddamn freedom."

Musk: People need freedom

The Tesla CEO, who in March called concerns over the coronavirus "dumb" and had to be ordered by county officials to close the company's California plant after claiming it to be an essential business, unloaded on states requiring people to remain in their homes to slow the spread of COVID-19.

The crisis prevented Tesla from achieving a first-quarter delivery record, though it didn't stop the company from posting a third consecutive profit.

 

[Driver Dave]

Musk criticized for ‘fascism' rant, but fans love it

On Ford Motor Co.'s earnings call last week, CEO Jim Hackett said this: "Safety is of the utmost concern in a pandemic; yours, your loved ones and the people you work with. The communities you live in and amazingly all other humans you interact with, their safety guarantees your safety."

Elon Musk had a much different message on Tesla's earnings call the next day: "This is fascist. This isn't democratic. This isn't freedom. Give people back their goddamn freedom."

Musk: People need freedom

The Tesla CEO, who in March called concerns over the coronavirus "dumb" and had to be ordered by county officials to close the company's California plant after claiming it to be an essential business, unloaded on states requiring people to remain in their homes to slow the spread of COVID-19.

The crisis prevented Tesla from achieving a first-quarter delivery record, though it didn't stop the company from posting a third consecutive profit.

I would love for Elon to say.

"This is fascist. This isn't democratic. This isn't freedom...
And here is how we are going to get people back to work.
I'm going to figure out how to let everyone get tested right before they enter the factory.
I'm going to figure out how to efficiently do contact tracing for all employees.
I'm going to figure out how to layout our factories and work schedules so our factories can become virus proof going forward"

This is better than:

"Give people back their goddamn freedom."

Because that is just sort of saying "give people electric cars!" and then doing nothing to make electric cars.

C'mon Elon, don't shout at clouds, work the problem.


Side note:

When a CEO says "stock too high imo"

You may believe them more when he says "stock too low imo"


Cheers everyone, stay safe.

 

[The Accountant]

Based on success in the fine art of balancing public priorities in California since March 24, I'd be disinclined to offer up $160M in State income taxes (12.4% of $1.3B) as things stand. Literally their loss.

I am not a tax accountant (just a run of the mill CPA) but here is my understanding on how stock based compensation is taxed in the US:
For restricted stock grants (when you are given actual stock) - Taxable when vested
For stock options (when you are given an option to buy stock) - Taxable when exercised (not when vested).

The CEO award is Stock Options with an exercise price of $350.02/share.
My understanding is that Elon would not have to pay taxes now when they vest....only when he exercises these options.

Elon has until January 20, 2028 to exercise any portion of the CEO Performance Award that has vested.

 

[elasalle]

Over weekend I though of closing some positions, but ended up Adding Jan 22 900 Calls this morning ... cheers!!

+off $50 as compared to last week price (prior to Rant) per ThinkOrSwim ThinkBack. Another $36 off by sellinga Jan 21 Calendar Spread against it.

 

[Artful Dodger]

TSLA opened at $700.83 which was above the Middle-BB ($696.16 @ 09:30 ET). So this means bears will not be able to skirt the inherent support provided by the Mid-BB in an effort to push the SP lower.

TSLA $711.52 @ 09:35 and 1.5M shares traded by 09:37

EDIT: Reached 'Max Pain' SP of $735 by 09:45 hrs on 3.0M shares volume.

 

[The Accountant]

Slight correction. The 1st tranche of Elon's CEO compensation plan is a grant 1% of TSLA stock, of which he'd need to sell some immediately to pay income taxes. At current SP the grant would be valued at about 1.3B so state taxes on that in Cali? Paging @mongo

I posted this in the main Investor thread - meant to post it here:
I am not a tax accountant (just a run of the mill CPA) but here is my understanding on how stock based compensation is taxed in the US:
For restricted stock grants (when you are given actual stock) - Taxable when vested
For stock options (when you are given an option to buy stock) - Taxable when exercised (not when vested).

The CEO award is Stock Options with an exercise price of $350.02/share.
My understanding is that Elon would not have to pay taxes now when they vest....only when he exercises these options.

Elon has until January 20, 2028 to exercise any portion of the CEO Performance Award that has vested.

 

[dww12]

We will see a different, hopefully rejuvenated, optomistic Elon in a few hrs when his child is born. May the 4th be with us, always.

 

[powertoold]

We will see a different, hopefully rejuvenated, optomistic Elon in a few hrs when his child is born. May the 4th be with us, always.

This is like his 6th kid. May the 4th be with him.

 

[JRP3]

What are the chances that the OVERALL death rate during the lockdown actually declines due to the lack of fatal car and other work-related accidents declines more than CV deaths increase?

Doesn't seem to be happening. More data in the CV thread.

 

[juanmedina]

This stock is crazy.... bought back the 50 shares that I sold Friday for a 12 cents discount. I really need to stop messing with my accounts .

 

[mongo]

This is like his 6th kid. May the 4th be with him.

This will be his seventh. First child, Nevada, died at 10 weeks.