Tesla stock

I didn't read the entire thread...it's a little big!

Yeah..I make a clear distinction between my swing trades and my long holds. Long holds are few and far between in the current environment. Even with my long holds I have a 'swing pile' of each one that I try to swing trade on dips to accumulate 'free' shares. It's a tough game. The scary thing is, I think people ( especially young people ) have come to 'expect' huge returns on almost every trade they make. Irrational exuberance is almost worse now than before the 'dot com' bubble crash in the 1990s.

And another thing. My trading account was originally 'play money' that I told myself I didn't care if I lost it all. All retirement funds, etc...are locked away in relatively conservative funds. I'd be a wreck trading like this with retirement funds...but people do it. In my opinion, folks doing that are skating on very thin ice. Same for people on margin accounts. I'd recommend *never* doing margin....SO many people get screwed over on margin calls...

 

I agree 101% with this. Lessons are going to be learned, and they're going to be painful. I helped my son start an Ameritrade account and the one thing I've been stressing to him is to not expect homeruns. Minimize your risk and limit your losses. Small bites will get the job done. I'll give him credit, as he's been pretty conservative (from what we discuss, anyway) and selling OTM covered calls. We started him small (3k) so he can learn and not risk a significant loss. He's limited on the number of 'day trades' he can perform until his account reaches >25k. I think that helps keep him reigned in. He's around halfway there now, after about 6 months. Making me proud!

 

Or as the young'uns would say..."Secure the bag". They also say "diamond hands" lately but that is BS...when the dam breaks on these meme stocks, it explodes....and I'd wager there are/will be far more FOMO losers than winners over the long run. Think pyramid scheme...the ones touting their 10 baggers got in early...and the rest are followers. But that is just my 2 cents...I'm just a (middle aged) old fart to them...haha.

 

It is very good advice.
The important point is that not everyone that invests in TSLA is doing so on an emotional basis even though some are.

 

Like China Bitcoin mining should either be banned or require a validated licensed zero emissions energy source in all countries.
Power is being stolen to run mining rigs so it’s an environmental disaster.

https://www.google.com/amp/s/www.independent.co.uk/tv/news/bitcoin-mining-blamed-heating-ny-lake-v38d320df%3famp

Bitcoin is an unnecessary fantasy currency that is a failure due to the high cost of power, Pollution and the waste of computing power

Thankfully Musk ditched coin

Ban Bitcoin and Other Cryptocurrencies to Stop Hackers’ Ransomware Attacks | The New Republic

 

Every tradable representation for goods and services has environmental issues, weather platinum, gold, silver Etc. Difference being, besides there potential to add poisonous toxins to the environment, the other currencies at least have sone other commercial value.

 

A severe problem with bitcoin is that it is inherently deflationary. It has a hard cap of 21 million coins, of which 18.75 million have already been issued. So the total supply can grow only 12% from the current level, while future worldwide economic growth should be vastly larger, maybe unlimited. If it becomes a dominant currency, then the bitcoin prices of goods and services must drop --> deflation.

Deflation encourages hoarding of the currency, "hiding it under the mattress", effectively discouraging economic activity and investment and growth.

 

@bwilson4web, how you doing today?

 

is it there yet?
Probably a silly question. since I believe you don't make many if any statements you haven't already previously answered.

 

wow

Dow, S&P 500 hit record highs ahead of Big Tech earnings, Tesla crosses $1 trillion mark

now THAT's market cap


.

 

On occasion I have fun looking at old threads about Tesla stock/business. The best one is, IMO, an old thread on the Volt forum, but there are lots.
Going back to the 2010-2015 time is good humor, in hindsight.

 

You would be interested in several articles in the current Forbes that are specific to Tesla and its stock price as an example of meme stocks ... even citing several valuation studies and bird flight pattern studies. What do birds have to do with stock prices. Starlings in Rome and how which bird influences the flock and how. Some interesting calculations of the size of the EV market, the share that Tesla will have to have of that market, the profit margins it will have to sustain in the face of competition.

And I say this on a day when Tesla is up.

 

Apple's smart phone market share shrank and the competition grew much greater where Tesla stands currently in it's own development stage. But Apple's margins never shrank and it became the world's largest company by market cap and investors were further handsomely rewarded.

It must be pointed out that Tesla is also not an car company nor just an EV company. That's their largest market component now, but the not-to-distant future is explosive growth in energy and AI. Tesla's road map continues to disrupt both and it is capturing virtuous cycles and ecosystems here as it works to race against Apple for the largest market cap.

 

on the day the tesla naysayers are right, i will believe them. until then, it's just more downer debbies.

they are either naive, or short sellers

 

A question for investors...

Why is it that any time Tesla has a positive earnings call with (mostly) decent news, the stock price dives down in the days just before and continues down for a couple days after the call?

 

some stock purchasers buy/sell;

What is High Frequency Trading (HFT)? - SmartAsset
or ... you can simply put money on stocks that will eventually get growth. Over time, eventually Markets go up. After having 2 Teslas - we realized losses of about $35,000 (depreciation) . But over the past couple of years - our Tesla stock has gone up enough where we could recover those losses & buy another Tesla & still come out ahead (not counting inevitable depreciation of that 3rd Tesla) if we wanted to.
Moral of the story, the Big Tech firms have a lot of control over the market short-term - but not long-term.
.

 

Because decent isn't good enough when you are priced that high? Maybe because there were stories in the MSM about no new models days before the earnings call? Maybe because there were stories proliferating about battery breakthroughs and they weren't coming from Tesla.

Maybe because you have to be an Apple and have a huge new profit hit every year to justify a stock valuation so superior to others. Lost though the year of good news about new factories and increased shipments and increased margins is the need to sell more cars at bigger margins that many can envision. (See Forbes Magazine December pages 61 and following.) As there is an increase in competitive EVs from established manufacturing experienced companies can that happen? How have the competitive reviews been?

Maybe because Elon dumped a bunch of stock into the market all at once. Available buyers may have already bought?

Germany hasn't opened and there was no announcement of its approval. Germans are mighty protective of their industry and their labor unions of their jobs. China is at the whim of the leader and chips made there could be diverted to onshore owned companies in a command economy. There are geopolitical risks that might not have been fully envisioned a few years ago.

Texas wasn't yet shipping cars to customers.

Those hundreds of thousands of CT reservations weren't going to produce sales before the competition started shipping and the competition's offerings were getting good reviews so that much revenue couldn't be assumed as soon as it was a year ago?

How long before the lawyers go after the self-driving moneys that haven't been supplied?

As the stock price soared, people who were willing to buy at a previous profit multiplier may have been replaced by ones who weren't at the new multiplier. There has to be an excess of buyers for a stock to grow in price. When you buy a stock, you are paying for anticipated earnings growth or dividends. And you should be willing to pay a reasonable amount for the growth you anticipate discounted for the risk you are anticipating. How much growth is needed to justify even today's price?

Plus some think the market is generally overpriced and there is a retreat supported by the FED. So funds may be selling.