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

[Curt Renz]

ARK Invest bought more TSLA today for the 3 ETFs in which it is suitable. This is unusual for an up day in TSLA, especially since it is close to 10% of each fund, which is their cutoff for not buying. ARK more typically buys on dips, and there were plenty more stocks in their funds that were dip candidates today, yet were not bought.

 

[ZachShahan]

If a major American company does not provide advertising dollars or interviewees to the financial news media, while its competitors do, there can be retribution. It's something like Chicago c. 1930.

For now Elon Musk needs to become as devoted to a single cause as was Eliot Ness.

"... or interviewees to the financial news media"
I think this is a big part of Tesla's PR problem. I don't fully understand why Tesla doesn't provide people for at least the major networks. I imagine Elon feels like he's the only one who could really respond appropriately but doesn't have the time, but seriously — so much more opportunity to shape the narrative if you have someone who can be 80% as effective as Elon at explaining the most important points and why FUDsters are wrong.

 

[Unpilot]

Thanks Zach! The one I was talking about was the first post in the Elon Musk vs. the Short Sellers thread, but I appreciate the others and will read them shortly.

The Divide is a good ...but depressing read.

 

[Earlian]

Core still strong and long here. Just had a long time out, living. Was more fun then watching the stock lately.

Couldn’t resist adding some J21 calls. What a fantastic opportunity for the crazy ones.

Just don’t do the same. Already said goodbye to the money.

So, if somehow this company does, what they do since 2012, but no one expects today - well then I’ll end up more then happy.

But again: Don’t do this. Too risky.

Congratulations to the strong bulls and thank you for fighting the FUD everyone!
Wish you the best!

 

[StarFoxisDown!]

Ark Invest bought more TSLA today for the 3 ETFs in which it is suitable. This is unusual for an up day in TSLA, especially since it is close to 10% of each fund, which is their cutoff for not buying. ARK more typically buys on dips, and there were plenty more stocks in their funds that were dip candidates today, yet were not bought.

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Will be interesting to see if they adhere to their rule on the inevitable rise back up to 300's and mid 300's in the 2nd half of the year when giga 3 starts becoming operational. If they stick to their rule, they'll have to start selling in the mid to upper 200's to keep under the 10% allotment....but I mean would you really want to sell anything in the mid 200's in the 2nd half of the year???

 

[ZachShahan]

I took a drive with my Model 3. The car is absolutely amazing after 16,000 miles, more amazing than when I bought her. Everyone who test drove my car was deeply impressed and wants to buy one. Whatever the analysts say, I'm convinced this car is the future. It's demand will go very high down the road. So this is what I'm going to do: as long as Elon keeps his shares, I will keep mine. If he buys more, I will buy more.

I was on a call today with a bunch of auto industry analysts and execs. It is a little shocking (and disturbing) how much they either a) don't understand or b) downplay Tesla superiority. They simply do not understand/believe why so many people buy Teslas or want to buy Teslas. They have all kinds of gripes and giddy criticisms about Tesla not doing things like big, old automakers. (How dare they! Hahaha — look at what that got them!) And most of them seemed like they had never driven a Tesla. (I'm sure some or all of them have — the must have — which makes it all the more odd.)

The only people who seemed to have a good, bird's eye view were 1) a guy with a Tesla (seemed to have a Model X) and 2) a guy whose 70 year old mom (not an early adopter or EV fanatic) has a Model 3 and loves it despite delivery and service issues.

I think we have the same problem we've always had — lack of understanding and vision. The main question I have is what happened to so much of the institutional investment that built up in recent years. (Writing an article about it right now.)

 

[Thekiwi]

The Apple stock app took all the Elon email headlines off the story stack under the stock symbol.

Again, if you don’t think there is manipulation of Tesla information to the public on Apple app, you’re living in FUD cave. (I’m looking at you Gerber)

Word of advice to Apple:

Stay out of the manipulation of information business.

Delete stocks app and News app. Bad for the brand and future outlook real quick...

FYI - the Apple stocks App simply gets all its data and news from Yahoo finance, Apple has nothing to do with the info.

 

[Curt Renz]

Will be interesting to see if they adhere to their rule on the inevitable rise back up to 300's and mid 300's in the 2nd half of the year when giga 3 starts becoming operational. If they stick to their rule, they'll have to start selling in the mid to upper 200's to keep under the 10% allotment....but I mean would you really want to sell anything in the mid 200's in the 2nd half of the year???

ARK's policy is to not buy any more of a stock in a fund if it comprises more than 10% of the fund. It does not have a policy to automatically sell a stock that is more than 10% of a fund. However, if cash is needed to purchase favorites that have dipped, a stock that is more than 10% of a fund becomes a reasonable candidate for some selling.

 

[Prunesquallor]

FYI - the Apple stocks App simply gets all its data and news from Yahoo finance, Apple has nothing to do with the info.

Yeah, the Yahoo feed is bad. I don’t use it anymore. The E-Trade feed seems better.

 

[ZachShahan]

I would rather see that too, but the problem is when the FUD and lies gets so great it impacts demand... that's why the public needs to hear it from Tesla and Tesla owners about just how good these cars are and how what the analysts and shorters are spouting is crap. And I don't believe you can do that strictly by building quality products not by advertising. Things like the Motor Trend article today help immensely (the 3 beat their Car of the Year!) and we need more of that, but it can't stop there... IMHO.

100% agree.

 

[StarFoxisDown!]

ARK's policy is to not buy any more of a stock in a fund if it comprises more than 10% of the fund. It does not have a policy to automatically sell a stock that is more than 10% of a fund. However, if cash is needed to purchase favorites that have dipped, a stock that is more than 10% of a fund becomes a reasonable candidate for some selling.

In the past they've sold Tesla in the mid 300's and said they were doing so to stay under the 10% rule. They've loaded up a ton all the way down on this dip so if they want to even stick remotely close to 10%, then they'll have to sell quite often during the 200's.

 

[JusRelax]

I watched Jake Fisher (editor at CR) on CNBC. In my view, he did nothing to dissuade CNBC (or anyone else) of its narrative regarding the CR article.

For anyone interested:

We aren't ready for autonomous driving, Tesla's autopilot update proves it: Consumer Reports' Fisher

Watched it... It's not just your view... he literally did nothing. If anything, anybody that had only watched that snippet wouldn't touch NoA with a 10 foot pole.

 

[Ggusev]

Saw few articles say "Adam Jones is currently working to support Tesla" and was like #$%?!
To say Adam Jonas is working to support Tesla is same as to say foxes are determined to support chickens.

Just remember how resistance in Maxwell was suppressed: shareholders of MXWL were explained that they are in deep *sugar* and the only thoughful choice was to go to Tesla's hands.

Now we see a very similar gameplay in reverse: extremely biased media muzzles any positivity, creating strong impression that Tesla is in deep crisis, stock is oversold to oblivion, and FSD is regarded as horribly unsafe technology.
And behind this Morgan Stanley and Adam Jonas are softly pushing the idea of 'will likely need to sell to a strategic partner to survive long term'

There's a good side though. Now when do your fact checking to sort noise from truth, you can pretty safely look for white in anything what Adam Jones and CNBC call black.

 

[ZachShahan]

Jerome: Elon, go play with the coders and leave the rest of us alone.

I wish I could have seen that conversation

I'm not sure if I'm missing some info. Are you referencing some specific comms or just an idea?

When we talked to Jerome in March, he joked that Elon told him to get a new production line up in 14 days, and since it took them 15 days, they failed. He was joking of course, but he didn't say this in an arrogant way at all — just a "doing my job" kind of way.

We also talked to top engineers on the production lines who walk through things with Elon on a weekly basis. No hint that he stepped back on his oversight of production.

 

[ZachShahan]

elasalle, do you believe these are not intentional leaks?

My understanding from talking to Tesla PR people is that they definitely are not intentional and Tesla really doesn't like all the leaking.

 

[Thekiwi]

Finally jumped back into some short term calls today - couldn’t resist, especially after that positive email.

 

[JohnDinger]

Has Tesla issued an 8K for Elon's email yet? When is the deadline for this?

Edit: Why the disagree? Isn't this a material leak?

 

[ZachShahan]

you can't ban a person from talking about his own company to his own employees, wtf is this nonsense?

No, you are wrong. The SEC says that Elon now has to walk around his factories and offices with his mouth completely closed and only nod or shake his head to answer questions. Even then, a bobble-head motion is preferred and safest.

 

[Curt Renz]

In the past they've sold Tesla in the mid 300's and said they were doing so to stay under the 10% rule. They've loaded up a ton all the way down on this dip so if they want to even stick remotely close to 10%, then they'll have to sell quite often during the 200's.

When did anyone at ARK say the words you wrote that I have emboldened? I have heard CEO Cathie Wood say that at times some Tesla may have been sold to buy other stocks that have dipped. Then she went on to emphasize that it is not her policy to automatically sell a stock that is more than 10% of a fund. She did say that the policy is to not buy any more of a stock that comprises more than 10% of a fund. Indeed, at times Tesla has for a period of time comprised more than 10% of an ARK fund. As of yesterday's close Stratasys was more than 11% of ARKQ.

 

[avoigt]

I was on a call today with a bunch of auto industry analysts and execs. It is a little shocking (and disturbing) how much they either a) don't understand or b) downplay Tesla superiority. They simply do not understand/believe why so many people buy Teslas or want to buy Teslas. They have all kinds of gripes and giddy criticisms about Tesla not doing things like big, old automakers. (How dare they! Hahaha — look at what that got them!) And most of them seemed like they had never driven a Tesla. (I'm sure some or all of them have — the must have — which makes it all the more odd.)

The only people who seemed to have a good, bird's eye view were 1) a guy with a Tesla (seemed to have a Model X) and 2) a guy whose 70 year old mom (not an early adopter or EV fanatic) has a Model 3 and loves it despite delivery and service issues.

I think we have the same problem we've always had — lack of understanding and vision. The main question I have is what happened to so much of the institutional investment that built up in recent years. (Writing an article about it right now.)

Talking to people from the auto industry leaved the impression to me they live in a different world and to be honest I believe they really do. Its their own echo chamber where friends, family and colleagues talk the same talk and keep distance from BEVs and if they touch one its one of their own not really impressive and a use case just for the city.

I am not so confident that they people you had in the call beside the two ever have driven ever a Tesla as this does usually change everything if people are honest to themselves and if not its very hard to undermine that feeling that you had and can't forget creeping under your skin.

Good material for an article indeed. Maybe....