There is clearly a conspiracy against Tesla

[Nobueno]

I don't know what it is, but it's obvious due to media among other things that tesla is continually setup to fail. They make a great product, but the media takes any chance they can to crucify the lithium ion batteries. Or the safety.

Matt Miller on bloomberg today was another one... about the fire and crash in LA, saying the flames were "stories high" ... Please. It's obvious it was a relatively small fire, but was spread out due to the scattering of individual cells. He is smart enough to know these things. last week I caught him doing the same thing over exaggerating some other tesla risk.

Anywho, delorean, tucker... All assume lay setup to fail... However I think tesla even moreso, but they've managed to survive.

 

[Canuck]

I'm not sure about the conspiracy theory but this might be the reason:

Lululemon, BlackBerry, Tesla among the top 27 stocks traders are shorting like crazy | Financial Post

You need to sing the song "One of these things is not like the others..." as you look over the list...

 

[Nobueno]

Word

 

[flashflood]

I'm not sure about the conspiracy theory but this might be the reason:

Lululemon, BlackBerry, Tesla among the top 27 stocks traders are shorting like crazy | Financial Post

You need to sing the song "One of these things is not like the others..." as you look over the list...

To be fair, as much as I love the company and the cars it makes, the current valuation of $27B is stratospheric. For reference, Ford has a market cap of $67B. Even if you believe that Ford is the past and Tesla is the future, Tesla is so tiny by comparison that they'd have to hit nothing but home runs for the next 5-10 years to grow into that price. People see Tesla's long term potential, which is how the price got so high in the first place; but because so much optimism is already priced in, every little bit of bad news makes investors question those rosy assumptions and run for the exits.

 

[Jack6591]

The Endowment Effect

‘The endowment effect is a hypothesis that people value a good more once their property right to it has been established. In other words, people place a higher value on objects they own relative to objects they do not. In one experiment, people demanded a higher price for a coffee mug that had been given to them but put a lower price on one they did not yet own. The endowment effect was described as inconsistent with standard economic theory which asserts that a person's willingness to pay (WTP) for a good should be equal to their willingness to accept (WTA) compensation to be deprived of the good. This hypothesis underlies consumer theory and indifference curves.’

Tesla Motors threatens the status quo.

 

[Doug_G]

I know a Tesla owner who plays the stock. He buys when low and shorts when high. He did get caught once on a short and negated his gains, though.

People are going to do this sort of thing with volatile stocks like TSLA. It's a form of gambling.

 

[PhilBa]

OK, I'll be the contrarian. Occam's Razor says look for the simplest explanation. I doubt there is a conspiracy in the true sense of the word. Reporters' and editors' job is to sell newspapers/page hits/... Controversy sells. "If it bleeds, it leads". So, anything that get's peoples attention is a very good thing. You will never see the story "high speed crash, tesla driver unharmed". But toss in a death, fire, high speed chase or a large breasted woman showing ample cleavage and it's right up there in bright lights.

Perhaps the origin of the conspiracy belief is that Tesla is a darling right now. Lots of true believer owners and a sky high valuation. I'm sure that there is some jealousy there and a desire to "take them down a notch" but don't believe there is a conspiracy to do so.

 

[Nobueno]

You're right... But in your words, if it bleeds, it leads.. haha... my assertion is flashier.

OK, I'll be the contrarian. Occam's Razor says look for the simplest explanation. I doubt there is a conspiracy in the true sense of the word. Reporters' and editors' job is to sell newspapers/page hits/... Controversy sells. "If it bleeds, it leads". So, anything that get's peoples attention is a very good thing. You will never see the story "high speed crash, tesla driver unharmed". But toss in a death, fire, high speed chase or a large breasted woman showing ample cleavage and it's right up there in bright lights.

Perhaps the origin of the conspiracy belief is that Tesla is a darling right now. Lots of true believer owners and a sky high valuation. I'm sure that there is some jealousy there and a desire to "take them down a notch" but don't believe there is a conspiracy to do so.

 

[Vger]

• "Any intelligent fool can make things bigger, more complex, and more violent. It takes a touch of genius -- and a lot of courage -- to move in the opposite direction."
• "We can't solve problems by using the same kind of thinking we used when we created them."
• "Great spirits have always found violent opposition from mediocrities. The latter cannot understand it when a man does not thoughtlessly submit to hereditary prejudices but honestly and courageously uses his intelligence."

-- Albert Einstein

 

[chickensevil]

To be fair, as much as I love the company and the cars it makes, the current valuation of $27B is stratospheric. For reference, Ford has a market cap of $67B. Even if you believe that Ford is the past and Tesla is the future, Tesla is so tiny by comparison that they'd have to hit nothing but home runs for the next 5-10 years to grow into that price. People see Tesla's long term potential, which is how the price got so high in the first place; but because so much optimism is already priced in, every little bit of bad news makes investors question those rosy assumptions and run for the exits.

It has been said many times that it is impossible to compare just about any current car company to Tesla in terms of valuation, because all these legacy companies have had multiple issues in the past (2008 crash anyone?) and have a lot of legacy debt and obligations. Tesla doesn't have all of this bloat to hold their valuation back.

 

[AudubonB]

As chicken says, it is foolish, not fair, to look at Ford's and Tesla's market caps to draw comparisons. Just as it would be foolish for me to tout the two companies' pension fund liabilities and scream "You MUST short Ford Motors NOW!"


Not that that's necessarily a bad idea......