OT but interesting for market sentiment
Just had the locksmith at the house to fix a door/lock in the garage. He was here a year ago. Always gets excited when he sees the Model S. He noticed I had a brand-new one this time and we got to talking.
And that's when he shared his views on the company--views entirely coming from his exposure to the media:
• It's too bad the company is having such financial difficulties
• "It's all about the taxes"
• "They're doing all kinds of things so as not to get hit with taxes"
• Oh, and the "subsidies" keyword was mentioned, of course
His general tone was, such a shame the company's going under. The implication was, why would you buy ANOTHER Tesla knowing the company's going down the tubes.
I did my best to assure him the company is actually in pretty good shape, and in fact is now the most valuable automaker in the entire world, more valuable than even Toyota. You could see the blank expression on his face, like my statement went right past his ears--it didn't faze him one bit. He just reiterated the dire-straits financial condition of the company, etc. Completely brainwashed.
As Spock would say, it was "fascinating" to observe. Though, exasperating. I could not convince him that his views were, shall we say, in error. It was like talking to someone who'd hung out for beers with Mark Spiegel or Gordon Johnson and all they talked about was Tesla, and now his head was full of information that he assumed was true.
I had a very similar experience with my brother last week. I have been telling him for a few months now about the opportunity that lies ahead for Tesla and why I think this is the most disruptive company in the world right now.
We visited him last week and the conversation went something like this. Keep in mind he is very risk averse and usually just invests in ETFs.
Me: Tesla is at an inflection point and are positioned to to make major impacts in Auto, Solar, Autonomous driving, utility etc etc
Him: But auto manufacturing is capital intensive and they have manufacturing challenges.
Me: Mostly cosmetic issues overblown by media. This is not just about Auto business. It’s about EVs, has fewer parts and they are making huge manufacturing improvements. You cannot just look at them as an Auto company
Him: But their CEO said they are overvalued.
Me: That’s not what he said, all he said was the stock price is too high. But that’s not the point, he always delivers.
Him: Yeah but analysts believe the stock is overvalued too and there is competition
Me: I’m not going to try to convince you but will definitely share some videos and fact based articles to show why they are succeeding( Product, improving margins, Munros videos etc)
Him : OK
After I sent him the information we did not have any follow up conversations on this topic.
This was last week prior to the most recent P&D report. We are still at his place and I have just kept quiet even though the stock is up 45% since that time. Oh well I tried...
I think the FUDs have much bigger impact on the casual investor. I don’t think a company like Apple had to deal with this *sugar*.
