Tesla ⚡

With Tesla cruising along at all time highs, it’s no surprise they are making the most of it. They are looking to raise $2bn through a stock sale.

On the last earnings call an analyst did ask about another raise. Elon assured them they would carry on within their existing means.

However, now is a very tempting time to raise some new funds and accelerate growth again. It seems that temptation was too great and they have submitted the paperwork for the stock sale.


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Looking at Tesla today in the app, we can see they have an absolutely amazing Momentum ranking.

However, going by the Value it definitely feels like this expectation is priced in.

Normally I would say that a cash injection (if it happens) would give the Quality a healthy improvement, but I expect this money will not see any return for sometime!

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Tesla keeps on surprising us all.

There is more than a company here, this feels like a movement that investors are getting behind rather than betting on.

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It seems the filling has been accepted by the market as good news. The new stock offering will come in at a discount but the share price hasn’t dropped down to that value, which sometimes can be the case.

However Telsa is never far from making the headlines. This time with delays to their new factory in Germany.

It’s worth noting that the factory hasn’t been accepted yet. They are allowed to clear the ground in anticipation of acceptance, at their own risk. This is a smaller hurdle before making sure they are allowed to start laying the foundations!

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Tesla is a hot topic, and they have some good news for last quarter.

It has given a boost of confidence in the stock even after the hit of COVID-19.

Will be interesting to see what the price does today. Do people buy last quarters sentiment, or price in the uncertain future?

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Employee price cuts and furloughing happening at Tesla.

Seems the sentiment is still growing for Tesla, they keep on bucking the trend.

In the app Tesla has solid looking momentum but the quality (as always) is very low, and it is still looking an expensive stock. Yet the price doesn’t seem to slow down! A tricky one to predict for sure.

I like to keep Tesla on my watchlist to see what is happening. Will they be the leaders in driverless electric cars, or will the competition heat up?

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There are always a few hype stocks the retail investors seem to latch onto en masse, resulting in the stock escaping the gravity of reality. Tesla is definitely one of those, Zoom as well I’d argue, Etsy briefly was it during the crash.

Heart seems to rule over the head of many investors, who seem to eschew fundamentals and prefer “story stocks”.

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I saw a very compelling write up about Tesla being the stock for the next generation. It’s the cool car company that teenagers will aspire to own and have photos of. He is the CEO that people believe in and back.

However, that is driven by emotion and ethos rather than commercials and business practice.

If Elon wasn’t involved in Tesla would it still be a strong stock? People said the same about Steve Jobs and Apple.

I have a lot of respect and admiration for Tesla, but as a holding I can’t follow the logic around why it moves in the market. If you can’t explain something simply then you don’t understand it (to quote someone way smarter than me, even if he was a terrible investor.)

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My Tesla was due this month, but I’ve no idea if it’s still coming or not. Difficult to get hold of them and find out exactly what’s happening, being furloughed doesn’t help either!

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Tesla Q1 announcement was last night.

Elon is putting on the pressure to get the factories back open again.

Of course he does. He is burning through cash and demand is evaporating with 20m+ unemployed. You don’t buy a $60k car when you’re out of work.

Question though is whether the USA is ready for it, daily amounts of deaths crept up again.

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Elon giveth and he taketh away.

Bought them almost instantly at the open today and rode a 7% gain. Same with Amazon, 1.8% gain.

Covered my YOLO move when I went in for Amazon the day before earnings, expecting a nice bounce there, only to get stung with a 5% drop when I sold out before it got worse.
:joy:

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Tesla is absolutely a technical traders dream. It really is just momentum trading!

Wonder if SEC will get involved because of the share price being too high comment. They must have him on speed dial at this point.

I went in with 50% allocation - breaking all my rules but after last weeks drop and how fast they tend to rally, I thought it’d be worth a punt. Already up 6% since I got in. Easy money.

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Once again Tesla has found a way to give themselves a boost, in the form of an unlikely ally.

Doesn’t surprise me l. Trump wants to open up the economy and if he can latch onto the “golden boy” to help create momentum around that, it’s a win-win.

Interestingly, Fauci warned yesterday about the risks of opening up too early and that it would actually set back economic recovery. The Fed may have artificially put the stock market on life support, but the market duly crashed 2% after his comments.

Lesson learned: Fauci > Fed

Today, however, the Fed will do another speech with Powell. Classic approach, whenever there is a dip in the market, roll out Powell or Trump and pump up the jam.

In other news, the faces of my five years old twins when they heard that the President of the USA was called “Trump” was classic. “President Fart” they call him now. :joy:

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I’m sure President Fart would love nothing more than to rally the markets again.

With an election on the horizon he needs to improve his image around making America great again, and reassurances over US jobs and a booming stock markets are great ways to achieve this.

The artificial support coming in from central banks has made equity investment very lucrative, remains to be seen what happens when this start to unwind.

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Both the S&P and Nasdaq are consolidating at the moment, failing to break upper resistance bands with higher lows and lower highs whilst volume is generally decreasing.

All signs that they are consolidating and getting ready for a big move. Whether it’s up or down remains to be seen, but with some of the FAANGM at ATH, buffet indicators at crazy highs and EPS in cloud cuckoo land, I am inclined to the downside. The smart vs dumb money indicator is also showing severe FOMO.

I think we live on hope that when the economy opens, everything will be fine. Traffic and spending data from the Far East indicate that it’s not so easy to open up the economy again, and that the risk of second waves are real.

Couple that with Q2 data starting to come out, and I feel that markets will dither or fall. But who knows, the Fed now started to buy corporate bond ETFs like LQD - will they start buying stocks next? Or will they push interest rates to negative territory like Europe and Japan have had, like the Bank of England indicated and like Trump started to tweet?

Both will be uncharted territory. Negative interest rates only prolong the inevitable and in Japan led to a lost generation. Buying stocks removes all risk element from markets and distorts it for years to come. More QE Infinity creates deflation, followed by inflation which our children and grand children will pay for.

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Looks like Tesla won the battle.

Officials in Alameda County, where the Fremont plant is based, said on May 13 that production at Tesla’s Fremont location could potentially resume this week

“We have local support to get back to full production at the factory starting this upcoming week,” Laurie Shelby, Tesla’s vice president of environmental, health, and safety reportedly said in a letter to the plant’s 11,000 employees.

Provided that the data show progress with our COVID-19 indicators, during this two week period, we would allow additional approved activities for local businesses, including Tesla, as previously planned.

Sounds like all things being equal the building will reopen this week.

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