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

[mickificki]

Would be only consequential if they were using a gasoline engine to run the pump.

Maybe they'll put a twin turbo on it...

 

[Mo City]

Disclaimer: I am a moron, just like everyone else.

I'm president of that club.

This stock is just insane.

 

[Pezpunk]

Maybe they'll put a twin turbo on it...

They should talk to Porsche then, they're experts on adding turbos to electronic devices.

 

[mrdoubleb]

I think markets are a leading indicator. Once news of the pandemic spreading in the US broke, markets tanked, even though there were just a few cases. Even though we are not at the peak medical crisis, I think the economic reality is pretty much baked in at this point. Investors have had a chance to think about the impacts, how the stimulus plays into this, etc...and markets are now a leading indicator of a recovery. The discussion of 2M new unemployment claims has been in the news for days, so it will not be shocking when it arrives tomorrow.

Disclaimer: I am a moron, just like everyone else.

As far as I know analyst consensus is 1M.

 

[Nocturnal]

My tentative plan is to load up on shares/calls the next time we dip due to bad CV news. My core shares are happily chilling in my IRA but I want to make some walking around money. I wish I had enough cash on hand to sell puts at that point as well but such is life.

Disclaimer: I am a moron, just like everyone else.

Hey, I'm not a moron! I'm an idiot.

 

[larmor]

Tesla got a couple of positive plugs during a CNBC interview with the CEO of Medtronic. Tesla are "fast ramping up" to produce a ventilator that is not Medtronic's current state-of-the-art model.

And runs on electricity...

As the weather warms and skies clear, and people are sitting at home, the case for home solar grows. If our healthcare system is not able to handle a large input, it is not hard to imagine that our grid system may also be suspect when stretched.

What has been stressed and failed in the last decade:
Large automakers
Banks
Healthcare
Grid-- PG&E
Oil-gasoline-- so many lives have been paid and lost to support this

 

[XHabjab]

Ally tracks your buy lots vs your sell, you need to specify whether to use FIFO (first in first out), LIFO (last in first out), highest cost or such. This burned me on my TDAmeritrade account because my short term trades matched against my long term holdings and I lost a lot of my long term capital gains coverage.

But at most brokers (perhaps all?) you can specify after the sale which shares out of the total were sold. You can't change the number of shares (hopefully obviously) but you can say you sold 'x' from this lot and 'y' from that one. You can do this for sure with TD Ameritrade since I am one of their customers and I do that much of the time. It is the 4th tab on the "Cost Basis" page. I think you have 4 business days after the trade occurred.

... and this is not a new feature. I did this in the days before the internet when you interacted with a broker over the phone.

 

[Zero CO2]

Damn I had a buy at $350, missed it by a few dollars Now it is shooting back up for some reason? Also worried about a complete recession that surpasses 2008 or even the great depression at this point.

Would be only consequential if they were using a gasoline engine to run the pump.

reminded me of this

 

[XHabjab]

I think WASH sale rules come into play. That could be an enormous tax liability which I learned about the hard way.

The wash sale rule comes into effect if you sell shares of a specific stock on one day, then repurchase shares of the same stock within 30 calendar days.

Note that you can buy shares and resell without triggering the wash sale rule, just not the other way around.

 

[XHabjab]

OK, newbie question here, but this is an investor's thread, so I *think* it is On Topic: I have been considering selling some of my stock in my Ally account. Some of the shares were bought >1 year ago, and would sell at a profit. But, some other of the shares were purchased <1 year ago, and would sell at a loss. So, does the IRS consider the sale as just one sale, or is each tranche taxed separately? Does the loss of the more recent shares, if sold at the same time, offset some of the profits from the older shares? Or, am I taxed fully on the profits of the older shares, and the sale of the newer shares (a loss) are taxed at $0?

The "short term" and "long term" sales are considered separately and taxed at different rates. You are correct that you will be taxed on the capital gains of the older shares and not see the benefit of the short term loss. The long term capital gains will be taxed at a lower rate than short term capital gains.

Edit: incorrect sentence grayed out. See correct answer provided by @willow_hiller

 

[Glamisduner]

The wash sale rule comes into effect if you sell shares of a specific stock on one day, then repurchase shares of the same stock within 30 calendar days.

Note that you can buy shares and resell without triggering the wash sale rule, just not the other way around.

Doesn't that depend on how long you have owned those specific shares that you sold? My broker sells your oldest shares first. ?

 

[Todd Burch]

So, with Tesla making ventilators, that makes them an essential business. I think that means that even though they probably can't manufacture cars, they can still make money from ventilator production, lessening the economic blow to Tesla in particular--is that right?

 

[mongo]

But at most brokers (perhaps all?) you can specify after the sale which shares out of the total were sold. You can't change the number of shares (hopefully obviously) but you can say you sold 'x' from this lot and 'y' from that one. You can do this for sure with TD Ameritrade since I am one of their customers and I do that much of the time. It is the 4th tab on the "Cost Basis" page. I think you have 4 business days after the trade occurred.

... and this is not a new feature. I did this in the days before the internet when you interacted with a broker over the phone.

Yes, you can change it while it is still in the settlement period (2 days for mine). It all changed from tracking basis yourself and broker reported sales to broker tracking everything with 2008 legislation that took effect in 2012 (when I wasn't actively trading).

Page with lots o' info:
What is Cost Basis? Defining Cost Basis | TD Ameritrade

Doesn't that depend on how long you have owned those specific shares that you sold? My broker sells your oldest shares first. ?

That is the standard default, but you should be able to change it.

 

[Nocturnal]

So, with Tesla making ventilators, that makes them an essential business. I think that means that even though they probably can't manufacture cars, they can still make money from ventilator production, lessening the economic blow to Tesla in particular--is that right?

I don't think that will be a profit center at all though (certainly would be bad press). Might be enough to keep some progress going in the company/factories.

 

[njzimmic]

Technically & Objectively Appraising the Market:
1. I see the market being artificially up due to gov't actions
2. Unemployment claims & more state shutdowns haven't been priced in
3. Early stages & no bottom in sight

Thoughts?

 

[MP3Mike]

The wash sale rule comes into effect if you sell shares of a specific stock on one day, then repurchase shares of the same stock within 30 calendar days.

Note that you can buy shares and resell without triggering the wash sale rule, just not the other way around.

No, a wash sale is triggered if you bought shares within 30 days before or after the sale. It doesn't matter if the buy was 29 days prior, or 29 days after, the sale.

 

[UCF3]

So, with Tesla making ventilators, that makes them an essential business. I think that means that even though they probably can't manufacture cars, they can still make money from ventilator production, lessening the economic blow to Tesla in particular--is that right?

I can’t imagine Elon would mark up ventilators. He might even be losing money on them. If he tried to make a profit that Lora Kolodny would be all over it

 

[Oil4AsphaultOnly]

I think by 2022 he won't have to worry about automatic execution.

Sure he does. It was a call option, and from my reading, he wanted the shares. If the calls don't auto execute, then he would've lost the options AND miss the shares!

In his shoes, as soon as the 35k is ready, i'd manually exercise the options. The current SP volatility means that he might sell the options (and buy the stock) for less than the difference between the stock price and the strike price. The net result is a loss on the conditional trade.

 

[Pezpunk]

Technically & Objectively Appraising the Market:
1. I see the market being artificially up due to gov't actions

disagree. what's artificial about $2 trillion dollars?

2. Unemployment claims & more state shutdowns haven't been priced in

disagree, it's been common knowledge for at least a week.

3. Early stages & no bottom in sight

hard to know, but what the heck, might as well disagree with this too since your first two premises seem wrong to me.

 

[Motor Mouth]

Technically & Objectively Appraising the Market:
1. I see the market being artificially up due to gov't actions
2. Unemployment claims & more state shutdowns haven't been priced in
3. Early stages & no bottom in sight

Thoughts?

You may be swimming against the tide here, but I agree with 1 and to some degree 2 and 3. I don't think the economic impact of idle businesses right now is being appreciated to its full extent by the markets. It's unprecedented and it's being treated as a correction. I think there is significant downside to come.
Not an advice.