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

[Twooz]

Is there aN official website for S&P500 announcements?

Media Center - News & Announcements - S&P Dow Jones Indices

 

[MC3OZ]

Here's a theory for the $5B raise. Seems that some Congress critters are worried about Chinese involvement in US space. (see Elon Musk's SpaceX NASA contracts threatened over Tesla China ties) And while SpaceX has zero dealings with China, Elon's other company, Tesla, has a $1.4B line of credit with Chinese state banks. So, this could be a plan A or plan B to either assuage Congress that Tesla can stand on its own without Chinese credit, or to even pay off the loans.

My own $0.02: Tesla has very real exposure to China. Not only for the loans (which Tesla could easily pay off), but for their factory and a significant percentage of Tesla's overall revenue. And if China wanted to, they absolutely could put pressure on Elon given this. In such a scenario, I believe Elon would call their bluff and tell them to pound sand (at a potentially catastrophic medium term hit to Tesla's share price). But as one of the aides quoted in the article above, that requires you to believe in the good faith of one man, Elon. This isn't how national security concerns are addressed. The US Government forces companies to divest based on national security concerns. Look no further than what's happening right now with TikTok for an example.

This is more of a SpaceX problem than it is a Tesla problem. Tesla is joined at the hip with China, for better or worse. I don't think there are going to be too many national security concerns about car manufacturing. SpaceX, however, is different as the difference between a commercial rocket and a ballistic missile is slim indeed.

IMO this may stem from a competitor who lost out on NASA contracts.

NASA needs SpaceX perhaps even more than SpaceX needs NASA.

Elon could agree to the US government monitoring all conversations with Chinese officials.

The chances of the Chinese attempting to apply pressure like this are close to zero, they will attempt to acquire knowledge via other means. One example, I know a very smart scientist who is underpaid and under appreciated here, the Chinese made him a very attractive offer to move with his family to China for work. The difference in money would have been huge... but he didn't take the deal. What this showed me is the Chinese know who to target, and I'm sure that knowledge applies across many fields of research and engineering.

While Tesla needs China, China also needs Tesla, no point in throwing that away for nothing.

 

[OrthoSurg]

Let's look on the bright side..imagine if markets were down today how much more $TSLA would be as well

Well yesterday it was up 12%
A little down the day after gives a bit of order in the universe

 

[Twooz]

What is the general consensus on here in regards to the possibility of inclusion to the S&P? There's been a lot of talk over the past six weeks. Am I just getting impatient or is there an increased likelihood that it may not be anytime soon?

 

[Remster32]

Credit Suisse gives their thoughts on the S&P add from a note issued this afternoon. Thought it was interesting to hear it from an institutional perspective.

"S&P add may be announced by the end of this week: With rebalance scheduled for the third Friday of Sep (Sep 18), an announcement would occur two weeks prior (Sep 4). Of course, there is no guarantee Tesla will be included in the next add given challenges in adding a company of Tesla’s size – there is no precedent for a ~$450bn+ company to be added to the Index; we believe many investors assume an add this month.""

 

[Zero CO2]

Nope, that's exactly how I felt as well. *sugar*. My heart has sank a little....I'll miss his vids and ramblings...

if you had the patience there was a lot to learn in those ramblings ...RIP Jack

 

[Robocop]

NASA needs SpaceX perhaps even more than SpaceX needs NASA.

This. SLS ain't gonna happen. Starship will take over the industry.

And re: China - China likely cares about the transition to EV, their air quality / energy independence than they do any space-race stuff. So I can't see them sabotaging a relationship with Tesla over some rocket stuff.

 

[Zero CO2]

I use the Internet probably 123,837 times a day. I'm in a car less than 40 times a year.

never been on F@$%-Book .... but in my Tesla once a day on TMC 123,837 times a day

 

[replicant]

never been on F@$%-Book .... but in my Tesla once a day on TMC 123,837 times a day

You're not using WhatsApp nor Instagram? I might more jealous of that than your Tesla.

 

[mickificki]

https://twitter.com/icannot_enough/status/1300927814112292870?s=21

 

[M|S|M MYP]

Well yesterday it was up 12%
A little down the day after gives a bit of order in the universe

Agreed....Hope we reverse the trend tomorrow

 

[Thekiwi]

I said it before, I'll say it again.

How the flying fudge is Facebook worth almost 2x Tesla? Damn millenials.

Facebook it an exceptionally profitable business. Growth is slowing, but with a PE ratio of only 36x it still looks very reasonable given its fundamentals.

Facebook Fundamentals:

- $23.5 Billion TTM Net Income
- $58 Billion TTM Gross Profit
- Gross Margin: 81.5%
- 36x P/E ratio
- 5 year growth rate: 42% per annum

 

[Sofie]

Hmmm...so the pullback today is due to profit taking or the dilution of shares? Thoughts?

 

[Prunesquallor]

Credit Suisse gives their thoughts on the S&P add from a note issued this afternoon. Thought it was interesting to hear it from an institutional perspective.

"S&P add may be announced by the end of this week: With rebalance scheduled for the third Friday of Sep (Sep 18), an announcement would occur two weeks prior (Sep 4). Of course, there is no guarantee Tesla will be included in the next add given challenges in adding a company of Tesla’s size – there is no precedent for a ~$450bn+ company to be added to the Index; we believe many investors assume an add this month.""

I guess they could require Tesla to reduce its size before inclusion.

 

[Nuclear Fusion]

I hope the $5B is put towards a massive expansion of the FSD team
Robotaxis generate far more revenue than building 5 million cars per year

 

[Singuy]

Hmmm...so the pullback today is due to profit taking or the dilution of shares? Thoughts?

I don't think dilution happened today. Tesla is most likely waiting for a S&P spike to start selling the shares and diluting the company if they see it beneficial to do so.

 

[Boomer19]

I guess they could require Tesla to reduce its size before inclusion.

spinoff everything except for the seat making team!

 

[FireMedic]

Hmmm...so the pullback today is due to profit taking or the dilution of shares? Thoughts?

Nope. Just on news. Or normal market fluctuations. Or it means nothing...it’s almost just a random number with a small adjustment for sentiment

 

[OrthoSurg]

Why You Should Not Day Trade | White Coat Investor

Who has been a successful day trader here?
Who has been a successful long holder here?

 

[Mokuzai]

YES!! Battery day emails are going out...got this at 5pm Pacific.