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TSLA Investor Discussions

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dsm363

Roadster + Sig Model S
May 17, 2009
18,278
151
Nevada
Maybe we should have a 'Oh no. The stock is down!' thread just for those posts. This thread could be for discussion about the stock in general.
 

Steph

Member
Feb 15, 2012
588
6
Montreal, QC, Canada
IMO, Tesla will be a huge success. I'm long. Only reason I look at this stock everyday is the mind blowing short interest numbers.

Some people will loose.... and loose big.
 

neroden

Model S Owner and Frustrated Tesla Fan
Apr 25, 2011
14,676
62,627
Ithaca, NY, USA
Maybe we should have a 'Oh no. The stock is down!' thread just for those posts. This thread could be for discussion about the stock in general.

Being someone who always sees things in a negative light, I suggest both an "Oh no. The stock is down!" thread and an "Oh no. The stock is up, I can't afford it!" thread. Optimists can have their own pair of "Yay, the stock is up" and "Yay, the stock is cheap" threads. :tongue:
 

neroden

Model S Owner and Frustrated Tesla Fan
Apr 25, 2011
14,676
62,627
Ithaca, NY, USA
That's a real downside of using the IRA as an investment vehicle -- instead of paying the LT cap gains rate, you'll end up paying the regular income rate. In the U.S., the federal capital gains tax is much less than most people's marginal tax rate on regular income.

Yes, hence my use of a Roth IRA. (For those who are curious, Roths are better than normal IRAs if you expect your income tax rates to increase between the time you put money in and the time you take it out; regular IRAs are better than Roths in exactly the opposite situation.)
 

neroden

Model S Owner and Frustrated Tesla Fan
Apr 25, 2011
14,676
62,627
Ithaca, NY, USA
The people who consistently lose in the stock market are the ones who buy because they are enthusiastic when the price goes way up, and then sell because they get discouraged when the price goes way down.

As for what the price "should" be, do your numbers: Figure out the ROI based on selling 20,000 Model S cars a year against the total capitalization of the company and then see what price per share yields an acceptable percentage on the stock price.
That was what I did. Lots of guesswork there, of course (you're guessing the profit margin on each car, the company overhead, future dilution of the stock, among other things), but you can make informed guesses based on the information published by Tesla.
 

daniel

Active Member
May 7, 2009
4,749
3,572
Kihei, HI
That was what I did. Lots of guesswork there, of course (you're guessing the profit margin on each car, the company overhead, future dilution of the stock, among other things), but you can make informed guesses based on the information published by Tesla.
What number did you come up with? I'm guessing Wunderlich did the same kind of number crunching when they came up with $49, but I don't remember if there was a time frame associated with that.

Even though I described the kind of analysis that needs to be done, I'd have no idea how to gather the input numbers.

And of course, after one has figured out an estimated "true value," it's nearly impossible to figure out what distortions the vagaries of the market will introduce. That's why my real investments are never in individual stocks.
 

Trnsl8r

S85 2012-2018, X90 since 2016, 3 since 2018
Aug 20, 2011
1,753
138
San Jose, CA
No cauliflower rants today? I seem to remember he's in AAPL and it's dropping like a stone today. Do those go into a different forum? :)
 

neroden

Model S Owner and Frustrated Tesla Fan
Apr 25, 2011
14,676
62,627
Ithaca, NY, USA
What number did you come up with?
That's proprietary investing information! :wink:

I'm guessing Wunderlich did the same kind of number crunching when they came up with $49, but I don't remember if there was a time frame associated with that.

Even though I described the kind of analysis that needs to be done, I'd have no idea how to gather the input numbers.
It's genuinely tedious. This is what you pay people for unless, like me, you like poring over endless boring documents just for fun.

And of course, after one has figured out an estimated "true value," it's nearly impossible to figure out what distortions the vagaries of the market will introduce. That's why my real investments are never in individual stocks.
Masses of guesses are involved, indeed. Though I think the most common risk is to make a perfectly good estimate of a company's future if it maintains business as usual, and then have management do something utterly crazy a couple of years down the road and blow the business up.
 

daniel

Active Member
May 7, 2009
4,749
3,572
Kihei, HI
No cauliflower rants today? I seem to remember he's in AAPL and it's dropping like a stone today. Do those go into a different forum? :)
I'm sure he would not rant about AAPL on this forum. Maybe he's also on the Apple chat board. I really don't think we should give him a hard time. He's a kid who wants to believe in Tesla but lacks the experience to understand that the stock market is not a rational enterprise. I made some bad decisions when I was his age and I bet all of you did, too. Give the kid a break.
 

AnOutsider

S532 # XS27
Apr 3, 2009
11,957
198
I'm sure he would not rant about AAPL on this forum. Maybe he's also on the Apple chat board. I really don't think we should give him a hard time. He's a kid who wants to believe in Tesla but lacks the experience to understand that the stock market is not a rational enterprise. I made some bad decisions when I was his age and I bet all of you did, too. Give the kid a break.

How many breaks? I lost count of how many times people have tried to explain the landscape to him -- he ignores it until something else happens and then blows up again... It gets a bit tiring.
 
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