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TSLA Investor Discussions
- Thread starter Fr23shjive
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CapitalistOppressor
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Fallout from the Massachusettes dealers lawsuit being eviscerated a few weeks ago, IMHO. The application was being slow-walked to give the dealers time to fight it out in court. That litigation has now been reduced to zombie status, and once dismissed Tesla would be free to put legal pressure on Natick for holding up an application for reasons already dismissed by the courts. So this is just them recognizing reality.
Natick selectmen grant license to Tesla cars - Framingham, MA - The MetroWest Daily News
Presumably, the next move for the dealers will be to tap friendly legislaters to move a bill modeled on the one passed in Colorado. But that is a year away, assuming it can even succeed.
Or you could just move to NJ where there is no sales, use, or luxury tax on zero-emission vehicles
I am hoping this win in MA pushes any investors with doubts that are still holding out over the edge and finally realize that Tesla is the way of the future and to get in now before the short squeeze explodes the stock.
Quiet boards this AM. I'm surprised there's not more chatter, given the solid rise in TSLA this morning. Nice to see the stock >$35.
Bardlebee
Member
I am holding out for it to go below 33 dollars. I was waiting for a sub 31 price but I feel like that may not happen. Though I am not well versed in investing so who knows! I don't have any limits so I will play this by ear. Definitely glad its going up, but I wish I had more in.
Definitely good morning (currently at 35.12). Market cap over $4b now. I'm glad I bought my full position last month. If I was in the market to buy, I'd think a $33-34 range would be a good deal now. Of course the market can always change (ie., TSLA goes down) but I think probability has it that TSLA is on the way up (especially with increased production).
Btw, do you guys think whether or not there's a fiscal cliff resolution will affect TLSA's stock price at all?
Btw, do you guys think whether or not there's a fiscal cliff resolution will affect TLSA's stock price at all?
mitch672
Active Member
Or you could just move to NJ where there is no sales, use, or luxury tax on zero-emission vehicles
I am hoping this win in MA pushes any investors with doubts that are still holding out over the edge and finally realize that Tesla is the way of the future and to get in now before the short squeeze explodes the stock.
No thanks, I'll stick to MA. You have enough issues in NJ, don't count on no sales tax forever.
favo
P3D+ owner
Does anyone think the $7500 tax credit might go on the chopping block as a cost-cutting measure? I haven't heard one way or the other, but it seems that some politicians love to knock anything "green" (except money). Do we know how much the credit adds up to per year on a national basis? Obviously losing the credit would take a bite out of the stock price.
I think the volotility will remain. My plan is to sell around $40 (not all - Thanks Cit-T) during peaks, and buy more on the downs (around 30-33). I'm guessing we won't go much below upper 20's now. I think sub-25 is pretty much extinguished for the most part, unless something changes.
JRP3
Hyperactive Member
I haven't heard any proposal to that effect (and I've been keeping my ears open for one), but it's the sort of credit that you could imagine gets cut in some last-minute, back-room negotiation as part of a big package. I'm certain that somewhere on Capitol Hill there's a long list of deductions and credits, along with projections for how much they impact revenues. I guess the good news is that there haven't been a lot of takers for the EV credit so far.
Citizen-T
Active Member
smorgasbord
Active Member
Just curious: Can you explain your thinking?
As I see it, you're committing to selling 1/4 of your TSLA shares for an effective $36 within a week and change, but the stock was trading above $35.50 when you made this trade. If the stock doesn't stay above $34 in the next week, you're down versus selling right now, but if the stock goes above $36 you're down versus waiting. What am I missing?
CapitalistOppressor
Active Member
The fiscal cliff has a couple of different effects that need to be considered.
First, the capital gains tax rate will be going up to ~21.2% in 2013 (see note). Second, my current take is that Republicans are going to pass the Senate bill to immunize the middle class from the scheduled tax increases. Then we will roll over the cliff with all the scheduled cuts from the sequester, as well as the other cuts which both parties agreed to during the last fight over the debt limit.
The tax increases that will pass through probably (IMHO) wont affect the economy directly in the near term, but might put a downward drag on the market. However, the scheduled austerity is enough to push us into recession, in very much the same way that austerity has thrown the EU into recession in the last year. That is not an immediate issue, and a deal in January or February can probably avoid it altogether, as Obama will likely front load agency spending to smooth things out.
The critical issue is that Republicans appear to be taking this tack (passing the Senate bill, allowing >$250k tax rates to rise) in an effort to gain leverage by shifting the debate past the fiscal cliff and onto the debt ceiling, which is going to be reached sometime between January and March. This increases the potential damage from the cliff as the parties extend the bargaining period, and opens the country up to the possibility of an unprecedented government shutdown and potential default on U.S. debt obligations.
Just the possibility of this tanked the economy in mid 2011, and the same will happen this time, only it will happen in the context of a major (and increasing) fiscal drag from having gone over the cliff.
Worse, if we actually do move past the cliff and turn the debt ceiling into an issue, there is every indication that the Democrats will refuse to even negotiate this time around. Unlike last time they appear to have an economic and political strategy in place in the event that we hit the borrowing limit. It is unclear to me whether their strategy involves Hail Mary efforts to bypass the limit (via platinum coins or the 14th amendment option), or just a really granular plan to shut down most of the government in a way that most limits damage to their constituencies.
Either way, I expect to see chaos in the market as the government at all levels of the country (state and local as well) are forced to shut down or curtail operations. A huge portion of our GDP will just cease until we see a resolution, and the knock on effects are likely to be even worse.
Regardless, unless we get an agreement by the end of this year, or very early in January, we are likely to see a massive increase in risk for stocks in general. In the worst (or even not so worst) case scenarios there will be real economic impacts that could result in reduced sales for Tesla. And if Republicans decide to pull the trigger on the debt limit, I really believe Democrats will let them this time. We literally do not have a precedent for the potential chaos and damage to the global economy that could result.
For my part, I've made a lot of money in TSLA in the last couple of months. I expect to lock in my 15% rate on most of those gains over the next couple of weeks as I finish closing out my position by the end of the year. TSLA is a beautiful stock, and it will still be beautiful in a few months when we have some clarity about these issues. It's entirely reasonable to just ignore these issues and stick with the stock, hoping that Washington will sort things out. But I'm not a sophisticated investor. I bought low, and now its time to sell high.
Note: The Bush rate of 15% expires, pushing the rate up to the 20% level set by Clinton in '98. Also (albeit with less certainty on my part) there is a surcharge of (I think) 1.2% that is being implemented as a result of the ACA. The last part might only be affecting folks with incomes over $250,000, but I haven't verified that with my accountant.
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