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

[jbcarioca]

OT: is it better to talk to CPA or tax attorney or both?

appreciate any words of advice, thanks.

A CPA/tax attorney is best, IMO, when you can find them. CPA are more conservative, generally. Tax attorney tend to be more aggressive. The combination lets the client decide a bit more easily. That said, unless you have a complex situation a tax preparation specialist often is sufficient. It costs money for the specialists. Make certain you need it before paying for it. Also, study everything yourself before using either. It is always better to be informed!

 

[X Fan]

This is an underappreciated aspect, SIPC federal insurance only covers $500k of equities:

SIPC - What SIPC Protects​

If you are using a US brokerage and have more than ~650 Tesla shares or more than $250k in cash, either get registered as a shareholder in your name, i.e. get a shareholder certificate (and make sure your broker contract cannot leave you on the hook for their losses), or use one of the 2-3 biggest brokerages in the US that the ruling party won't allow to wipe out trillions of dollars of assets of millions of Americans.

This is on Tesla's Investor FAQ page:

"The transfer agent and registrar for Tesla’s common stock is Computershare Trust Company located at 250 Royall Street in Canton, MA 02021. Their telephone number is (800) 662-7232. Please contact Computershare for any questions about receiving stock certificates for your shares."

btw: this is on Schwab's page re: protection of accounts (Fidelity and others may be similar):

"In addition to SIPC, Charles Schwab & Co., Inc. customers receive an extra level of coverage. Schwab maintains “excess SIPC” insurance protection for securities and cash up to an aggregate claim amount of $600 million".

From Fidelity:
Additional Coverage

In addition to SIPC protection, Fidelity, through National Financial Service (NFS), provides its brokerage customers with additional “excess of SIPC” coverage from Lloyd’s
of London together with other insurers.† The excess of SIPC coverage would only be used when SIPC coverage
is exhausted. Like SIPC, excess of SIPC protection does not cover investment losses in customer accounts due to market fluctuation. It also does not cover other claims for losses incurred while broker-dealers remain in business. Total aggregate excess of SIPC coverage available
through Fidelity’s excess of SIPC policy is $1 billion.

Within Fidelity’s excess of SIPC coverage, there is no per customer dollar limit on coverage of securities, but there is a per customer limit of $1.9 million on coverage of cash awaiting investment. This is the maximum excess of SIPC protection currently available in the brokerage industry.

Both SIPC and excess of SIPC coverage is limited to securities held in brokerage positions, including mutual funds if held in your brokerage account and securities held in book entry form. Neither SIPC nor additional coverage protection covers investment losses due to market fluctuations.

 

[Opus BC fan]

I wonder what the common folk are doing today?

 

[SageBrush]

I wonder how long it'll take all these Wall Street expert analysts to up their price targets again.

Seems pretty simple. They update by the lower BB to maintain a veneer of respectability for the TV audience, all the while predicting a crash.

 

[mongo]

I wonder what the common folk are doing today?

I'm hitting F5.

 

[madodel]

To understand the stock valuation it's a simple question, If we are headed to 10 or 20 million BEVs in 5-10 years, which is a higher risk on execution to there: Tesla or Toyota?

There are more complicated questions around energy and autonomy, but the electric cars one is simple.

Unless I'm missing it, Toyota has no EVs. A search comes up with Hybrids and Fuel Cell. Unless Toyota can turn on a dime or has some deep secret EVs ready to go that no one seems to know about, they are toast. And I mean the burnt to a cinder kind.
Semper Tesla™

 

[TheTalkingMule]

Have so much work to do, just can't stop watching the talking heads lose their minds on CNBC. Hilarious.

They literally can't come up with a fundamental reason why a company about to kill XOM, Toyota and Uber is worth $150B. Lol

 

[lklundin]

Love TSLA and Tesla, but I am a sports car guy at heart. I have a Taycan on order!

When you get it make sure to hook up with a Tesla Model S Plaid owner for some racing videos.

 

[jbcarioca]

The only time I've used a tax attorney was when my CPA and my broker disagreed on how to treat a $2M gain. My broker (and the 1099) said it was capital gains. My CPA said the broker made a mistake and it was ordinary income. Specifically, it was how to you treat currency gains made on foreign country government bonds, not the interest, but the change in value based on currency fluctuations. For that one, I hired a consulting tax attorney for a second opinion since I didn't like my CPA's answer. My CPA was right. Sigh.

Lesson learned: If you want to play currency fluctuations, do it via forex options or the spot market.

BTW, for all those investors here that are looking to do something new like buying/selling options, go slow at first while you learn. I know this gets said a lot in these forums, but it really can't be said enough. Maybe it's just me, but whenever I do something new with regard to investing, more often than not, I am telling myself, gee, I wish I had known that before! It's complicated out there, so don't risk too much until you've been burned a few times to learn those lessons...

This is one of the reasons why I use a tax attorney who is a CPA.

 

[SMAlset]

Excellent post.
It means you should pay according to last year's schedule unless you have a really solid reason to think this year will be less. I tend to to follow last year for at least the first 6 months of the current year and then consider paying less for the remainder of the year if substantial negative changes have occurred.

Penalties can be brutal if you are not aware of quarterly filing and need to come up with both. For making this kind of money the smart thing to do is seek a good tax person and learn what your responsibilities are and the timing of them. I think our CPA is going to be sick over the taxes we'll owe this year.

 

[shrspeedblade]

And they are putting it where?

H2 BABY! (I'll show myself out....)

 

[MarcusMaximus]

Unproductive cash is one of the least safe places as it would just whittle down to nothing over the years.

Where, of course, “over the years” could be greater than or equal to “the rest of your life”.

 

[humbaba]

I wonder what the common folk are doing today?

Trying to get work done in between oggling the stock price... stock is winning.

 

[sparcs]

I'm officially putting my sell order in at $2199 to undercut StealthP3D. He's just too high at $2200.

(just in case the real VW squeeze happens)

 

[dl003]

Me in between working today

 

[TradingInvest]

Last Friday I bought February $800 calls, wanted to test the theory that every Monday the stock tend to rally. Wow. So you guys have been making big bucks without letting me know?

Only bought small amount, but big percentage gain. I converted the gain to permanent shares. I think these few shares will turn into Roadsters down the road.

 

[Congo Line]

Looks like Baillie Gifford added to their holdings. Baillie Gifford & Co Increases Tesla TSLA close to 14 Millions Shares

 

[StealthP3D]

It looks like BB King wrote a song to help console the TSLA shorts:

Because everyone can use some comfort during these troubling times...

They called it stormy Monday, but Tuesday is as just as bad
Oh, they called it, they called it stormy Monday, but Tuesday, Tuesday is as just as bad
Oh, Wednesday is worst And Thursday oh so sad

The eagle flies on Friday now, Saturday I'll go out to play
Oh, the eagle, the eagle flies on Friday Saturday I'll go out and play
Sunday I'll go to church, and I fall on my knees and pray

 

[Intl Professor]

Sold all in a Roth IRA today, @ $906. Wealth manager been pushing sale since $500. (Cost basis $29 and a smidge.) I'm about to tell the manager to lay off trying to sell for rebalancing because I might want to buy it back at $700 which I don't expect will happen.

Thanks folks, for the Baron interview. His approach to investing in companies is what I've been trying to do since 2000 following what I understood to be Buffet's approach. There are a few differences, aside from the funds available for investment. (From my pensions in the day only had $2,000/month to invest.) In contrast to Buffet I understand technology, at least from a basic m.e. level. Baron, on the other hand, has direct super access to the company plus investor wisdom.

 

[SMAlset]

Unless I'm missing it, Toyota has no EVs. A search comes up with Hybrids and Fuel Cell. Unless Toyota can turn on a dime or has some deep secret EVs ready to go that no one seems to know about, they are toast. And I mean the burnt to a cinder kind.
Semper Tesla™

I think I read yesterday that the deal they inked with Panasonic is to produce cylindrical batteries same as Tesla but with a different formula and to be used in their hybrids.