TSLA Investor Discussions

[AnOutsider]

Right.. Tesla sold those shares, and now it's just shareholders making a buck off each other. They're in the free market.

 

[Mitrovic]

I would not think that a short squeeze would benefit the company, since by its nature it must be temporary. So I would not expect a company to act in such a way as to maximize the likelihood of a short squeeze. Unless the insiders want to sell some of their shares.

I also don't think that people who are constantly buying and selling benefit the company at all, and if successful at making a few pennies or a buck per share here and there, all they are doing is extracting money from the system without doing anything productive. When you invest in a company you are providing capital the company needs to function. Gamblers are just people who attempt to get something for nothing. And speculation is just gambling.

Sorry. That's just how I feel.

I'd like to get my shares as cheaply as possible. But once I'm in, I'm in for the long haul.

Very well said!

 

[Mitrovic]

However investors expect to get something in return, short or long term. You just want a symbolic piece of the company and have stated you don't really care about selling or making money, which is fine, but it's not really investing. You might as well make a donation to Tesla and get a plaque or something.

Don't mix speculation with investing!
Investing is long term. Speculation is short term. Specualtion is a big problem of our western economy!

 

[jerry33]

Don't mix speculation with investing!
Investing is long term. Speculation is short term. Specualtion is a big problem of our western economy!

It's like the police officer said at the last neighbourhood watch meeting: Criminals are out for instant gratification without any work. I might add: so are speculators.

 

[78Lion]

Don't mix speculation with investing!
Investing is long term. Speculation is short term. Specualtion is a big problem of our western economy!

It's only benefit has been to drive up the price of gas at the pump which won't benefit me until I get one of these new infernal contraptions.

 

[JRP3]

Don't mix speculation with investing!
Investing is long term. Speculation is short term. Specualtion is a big problem of our western economy!

I didn't mix anything. Long term or short term "investing" are both investing. Buying shares of a company with no concern of making a profit or ever selling them isn't really investing.

 

[Citizen-T]

I disagree.

As share value increases in the after-market due to a companies performance the future borrowing power against that value by said company also increases. That factory is really big and it is going to take some serious money to add lots and lots of manufacturing capacity.

A few points shaved off a loan or added to a future secondary can make or break a company.

There's some truth to this, but remember, the price only changes when someone makes a trade. So you just made a case for why we need people buying and trading. If everyone just holds their shares, we have no idea how much those shares are worth.

 

[JRP3]

Well supposedly the value of the shares have some relation to the actual value of the company, including future potential.

 

[Citizen-T]

Well supposedly the value of the shares have some relation to the actual value of the company, including future potential.

They certainly do. But the actual price of the shares is what someone is willing to pay for the current value + those future earnings. The market decides what that price is when a trade happens, you can't figure it out on paper, you need a buyer and a seller.

If stocks are too abstract, think of your house. It doesn't matter what the appraiser says your house is worth, all that matters is at what price there is a buyer for your house. And besides, the appraiser looks at what prices similar houses sold for to come up with that price, right? So, if nobody anywhere near by you was selling their house, you'd literally have no idea how much your house was actually worth, and an appraiser wouldn't either.

Price accuracy depends on liquidity. If there is no liquidity, you don't know what your assets are worth. It doesn't matter if it is a house, art, bottle caps, or stocks.

 

[brianman]

Price accuracy depends on liquidity. If there is no liquidity, you don't know what your assets are worth. It doesn't matter if it is a house, art, bottle caps, or stocks.

Well put. Speculation is part of that story as well.

 

[Norbert]

Since there are always buyers and sellers, buying and keeping a stock certainly raises the price (demand and supply). I guess it also reduces the chances of a takeover. Among other things.

 

[Uncle Ron]

EDIT,,

 

[Citizen-T]

Since there are always buyers and sellers, buying and keeping a stock certainly raises the price (demand and supply). I guess it also reduces the chances of a takeover. Among other things.

No doubt there is a place for both. I'm just saying, don't jump all over the shorter-term minded investors. You need both to make a healthy market.

 

[Citizen-T]

Back to discussing the stock, though. I don't really like the price action today. It seems like there is just too much resistance at the the 50-day moving average. I thought yesterday's announcements would have punched through it.

Seems like people may be getting yet another chance to buy, we might test the 200-day again before we get a reversal. Not at all what I would have predicted.

 

[Uncle Ron]

EDIT,,

 

[ckessel]

TSLA seems to drift downwards lacking press, so I'm guessing it'll drift down until the first car is shipped. How far down, who knows.

 

[daniel]

Short-term speculation is how we get bubbles: The price of something (TSLA stock, tulips, houses, whatever) is rising, so someone says "I can buy it today and sell it tomorrow and make money." The short-term demand fuels the price rise. The next guy says, "He made money, so can I," and the bubble expands as people are willing to pay more and more, thinking they can turn right around and sell for a profit. Eventually the bubble bursts and (in the case of a wide-spread bubble like houses recently) the entire economy suffers. Meanwhile, a few speculators got rich.

The argument is that speculators improve liquidity. I just feel that they do more harm than good. JMO.

The market is useful. We need liquidity because people would not buy stock if they could never sell it. But I question whether we need so much liquidity that it's worth the wealth that speculators extract from the market on a daily basis.

OTOH, it's legal, and it's inevitable. So, best of luck to all the speculators reading this.

 

[zack]

There's a possibility that the SpaceX launch might affect price (either way) too. Elon's gotten a lot of press in recent months connecting him to all three of his companies, and anything spectacular and newsworthy regarding SpaceX might bring Tesla's name into the news.

 

[Fr23shjive]

When do investment firms release their ratings on companies like Tesla? After earnings? They usually rate Tesla highly and we see a big jump in the share price.

 

[Uncle Ron]

EDIT,,