Why not? The news that the Model 3 ramp is finally taking off, that Q3 will see high gross margin and that no capital raise is coming, should have caused the stock to takeoff even if it were still at $320, much less $265 IMO.
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Why not? The news that the Model 3 ramp is finally taking off, that Q3 will see high gross margin and that no capital raise is coming, should have caused the stock to takeoff even if it were still at $320, much less $265 IMO.
Reciprocity
Active Member
Yup, this is what help drive the stock to 386ish ATH not to long ago. Basically rolling their short over and over and over. Remember, that if shorts dont get out now, they are toast and made nothing with this drop. This will impact peoples psychology as the price keeps hiking. Look at today. The market is down a lot and Tesla is up a lot over 2 days.. more then 8% If you can stand there and handle that kind blood on the short side, then more power to you. Most will cut and run, which will drive the price up.
This is why it is also critical to take some gains when you can. You can always buy more when it eventually drops. This is Tesla and it does not just go up. Though the long term trend is definitely good.
Genius! Cars being sold in China comes with easy to assemble engines with how to videos
RobStark
Well-Known Member
If Chinese banks sell US Treasuries to Wall Street for 50 cents on the dollar it doesn't crush the US economy.
Anymore than when Japanese banks did this in the 90s.
Whatever discount the Chinese sell US Treasuries it is like they gave us all the crap at the 99 cent store for free.
sundaymorning
Active Member
Reciprocity
Active Member
I think it would impact Tesla.. but I also think the end result will benefit Tesla more then many. Everyone knows tariffs are bad. Both sides will make some concessions and hopefully, China will allow companies like Tesla to own their own factories.
But the resulting rise in interest rate at which our government would have to refinance would be crushing.
To both us and them, which is why they are unlikely to do it.
RobStark
Well-Known Member
When Japanese banks massively unloaded US Treasuries after the hysteria of Japan INC owning America in the 80's ? No. I lived through it. I was a young lad then but I remember.
Google it.
Reciprocity
Active Member
Listening to bloomberg stream and they are doing all they can to not say Tesla's stock is up at this moment. They are literally saying auto stocks are down and they even include Tesla, though they refused to say the stock price is up. All they will say is that stock was down 5%..hahah lol.. now the lady says that Tesla has kinda sorta rebounded without saying how much. HOLY WTF! Fake news much.
Edit: Hey Bloomberg.. Tesla is up over 8% in the last 2 days. You are really bad at what you do.
Edit: Hey Bloomberg.. Tesla is up over 8% in the last 2 days. You are really bad at what you do.
sundaymorning
Active Member
They could also reach an agreement to allow a 3-5 year window for new companies to enter China without IP transfers and revisit their negotiations after that window is up. This would be a win for both sides.
Reciprocity
Active Member
uhm, that would be hard because China refuses that it is a fact that IP transfer is happening.
sundaymorning
Active Member
Wouldn’t such an act decrease the value of the dollar and increase the value of the Chinese Yuan? Doing such a thing would not be in China’s best interest as it would likely slow down the Chinese economy. The point of having a devalued Yuan is to attract outside investment to stimulate its own economy. So buying and keeping those treasuries is something China would want, if it wants it’s economy to expand.
Why China's devaluation of the yuan matters so much
I have tried googling it but am not finding anything, and that era is before my time of following markets. Please help. I’m truly curious.
sundaymorning
Active Member
Same here. The 80s is before the internet.. it’s likely also an era that isn’t worthy of much republishing compared to pre-internet eras such as WW2, the Holocuast, etc. It’s generally a topic that not too many people understand.
Just a reminder on China.
Only the shorts think demand matters.
Repeat after me: Tesla is supply constrained. Tesla is not demand constrained.
Reducing demand from China has next-to-zero impact on Tesla's near-to-intermediate term growth.
In the long run, Chinese demand matters. But, to misquote Keynes, in the long run, the Trump presidency will be dead.
Only the shorts think demand matters.
Repeat after me: Tesla is supply constrained. Tesla is not demand constrained.
Reducing demand from China has next-to-zero impact on Tesla's near-to-intermediate term growth.
In the long run, Chinese demand matters. But, to misquote Keynes, in the long run, the Trump presidency will be dead.
Just a reminder, Guy Adami said 2 days ago TSLA was a buy if it went up to 280.
Reciprocity
Active Member
Brilliant.. Couldnt have said it better myself. But not exactly right. This is why..IF and that is a big IF, Tesla is trying to push out the 200,000th delivery to July 1st, they could sure use China's demand over the next couple of months Beyond that, its even less of an issue because Tesla should be flooding the US market with S/X from July 1st - Dec. 31st. But otherwise. I think you are correct.
sundaymorning
Active Member
I think in the short term we will see a burst on Chinese orders due to this. Ironically, the Tariff announcement may briefly increase Tesla’s demand in China. As stated in earlier posts, Mercedes S class has no problems selling for $230-430k in China, compared to Tesla MS, which starts at $103K. The pricing for Tesla’s are very reasonable in China due to Tesla’s fair pricing policies. So even a 25% increase pegs Tesla MS at $130k, which is still $100k cheaper than the S class. If the Tariff does go through it will likely minimally affect Tesla’s sales in China.
If I were Elon, I would build a factory in Europe first, afterall Europe is Tesla’s 2nd largest market. Since M3 production won’t catch up with demand for the next decade they theoretically don’t need China until the market saturates. I don’t see this saturation happening for EVs several decades to come.
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