Tesla Megathread (was Just lost $40k USD on Tesla options)

[killramos]

Originally posted by Toma
New issue, $500 million in new stock, Elon is buying $20million of it....

Why would a 30 billion dollar company need to raise 500 million.

All the vapour investors have given Tesla a license to print money...

[rage2]

Just last week the CFO says they're comfortable in their cash position when directly questioned about this. They had room on credit lines, even tho cash burn has them running out within 6 months at current spend, but they claim cash balanced by Q1 '16. I guess comfortable means something completely different to Tesla haha.

[JRSC00LUDE]

Originally posted by killramos


Why would a 30 billion dollar company need to raise 500 million.

All the vapour investors have given Tesla a license to print money...

Do you remember the Simpsons episode, I am Furious (Yellow), where they make the Angry Dad cartoon?

It reminds me of the line where Lisa asks head honcho Todd Linux about their business model. 'How many shares of stock will it take to end this conversation?' he retorts. Lisa asks for two million, which Linux grabs from a paper-towel dispenser.

[killramos]

Originally posted by JRSC00LUDE


Do you remember the Simpsons episode, I am Furious (Yellow), where they make the Angry Dad cartoon?

It reminds me of the line where Lisa asks head honcho Todd Linux about their business model. 'How many shares of stock will it take to end this conversation?' he retorts. Lisa asks for two million, which Linux grabs from a paper-towel dispenser.

Exactly. All the vapour has pushed the stock price to stupid high levels, why wouldn't they issue more shares. It really is just paper since there are no other base metrics which are legitimately valuing Teslas capitalization.

500 million dollars for a few percent of the company, this is actually one of the more brilliant financial decisions tesla has ever made.

The more mind boggling part is that anyone with a clue is willing to participate in this offering. Probably counting on the hype churn from model x reveal to allow them to liquidate their position for a quick XX% return.

What a joke. When this crashes, and it will soon, billions of dollars of people's savings are go I to be erased. That's the real sad part.

[Sugarphreak]

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[Mibz]

Originally posted by Sugarphreak
It is coming, it will just be a matter of what sets it off... and this seems like a likely candidate

Normally you say things about money and I'm like "Mmhmm, I know some of those words" or "I don't know enough about what he's talking about to have an opinion about this".

But I can't fathom what would make you say something like this.

[Sugarphreak]

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[supe]

Originally posted by Sugarphreak
similarities to the first tech stock crash... It is just overblown right now to an extreme. I don't know when, but it is due for a major correction. My current working theory is either the O&G crash will spread to other sectors, or one of the major tech stocks will set it off with something like cooked books, or a sudden drop in revenue. Tesla seems like the most likely candidate.

Really? You don't know it will happen but you don't know when? The best of the best investors will tell you not to time the market. Why are you trying to scare the kids?

[Sugarphreak]

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[rage2]

Can't agree with Sugarphreak at all. Only similarity with Tesla is the cash burn rate measured in months compared to the bubble stocks back in the day. The difference is that Tesla actually has measurable revenue, and that there were hundreds of these companies that went nowhere during the bubble.

[Mibz]

Originally posted by Sugarphreak
It is just overblown right now to an extreme

This is the part I don't understand. I wasn't old enough to really know what was happening the first time around but I still don't see how you can draw parallels based on one or two companies. I disagree that the entire industry is overblown.

Sure, there's some pop-tech that likely isn't sustainable but in the vast majority of cases it's backed up by useful enterprise tech that is. The collapse of a company like Tesla will have little to no bearing on the tech industry. EV industry? Sure. Tech? No way.

[Xtrema]

Originally posted by Sugarphreak
I wonder if Tesla will be responsible for the 2nd tech industry collapse?

It is coming, it will just be a matter of what sets it off... and this seems like a likely candidate

At least Tesla advances humanity. Unlike facebook, snapchat and all the other social media BS.

[Sugarphreak]

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[Mibz]

Originally posted by Sugarphreak
Tesla is just another example of a company that makes money by selling shares rather than selling products. It isn't sustainable long term. I'd be very surprised if in 5 years from now we were not talking about Tesla the same way we talk about Enron or Bre-X.

I don't disagree with this, but...

I see Tesla as a tech company, not a car manufacturer. IMO when they finally start to collapse under their own promises, it will affect that sector.

Facebook, Google, Amazon, Netflix... all of these companies might look really good now, but when a company like Tesla fails it is going to cast a shadow on them.

I completely disagree with this. Google and Amazon sell products. Ridiculously profitable products. Products that fulfill multiple very real enterprise needs, and ones that will be necessary for years to come. Bundling them in with Tesla and social media isn't right. And calling either Tesla or social media "tech" isn't right to me either.

[Sugarphreak]

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[Mibz]

Originally posted by Sugarphreak
Market Share

Stock investment relies on future growth

Growth can occur without increased market share as long as there's any combination of more people buying more of your shit at a higher price. That or growing into or creating new segments in which to gain market share. Companies like Google and Amazon are really fucking good at the latter. Microsoft and Apple maybe less so, but they've got the cash to try, at the very least.

I am curious though, what sector do you guys think Tesla fits into if not tech?

I don't think I'm qualified to make an accurate statement here, but I'd say Energy more than anything.

I typed out a justification for it but ended up talking myself out of believing it. I'll leave it there for now but I need to put more thought into it.

[Sugarphreak]

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[supe]

Originally posted by Sugarphreak


The thing is that I agree with your sentiment; Amazon, Google, and Netflix still all have great potential for future growth ahead of them. Facebook and Apple though are bouncing off the roof at this point... they can't extract much more money from their current client base, and if they don't keep doubling up somehow the entire house of cards they have built for investors will come tumbling down.

See now you're just full of shit. You just called Apple a house of cards???

[Sugarphreak]

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[supe]

But you clearly grouped apple in with them. You do know that apple has a PE of 13.5 right? But right, lets just group them in with the rest of the 'house of cards'. You have been screaming house of cards for a year now.

Yes eventually there will be a crash, key sugarphreak with the I told you so, but who knows when that will happen. Even then it will eventually recover.

Like it or not Tesla is in the auto sector:
https://finance.yahoo.com/q/in?s=TSLA+Industry

However because of their business model they are also a tech company but also has the potential to disrupt the entire energy industry.