Tesla, the investment

[CordMcNally]

Jeff bezos and bill gates sell stock to pay for things and taxes. Why is this any different?

I remember all the social media and AOL polls they would create for attention.

[Nysoz]

I’m assuming there’s a difference between getting a loan for millions of dollars and billions of dollars.

Also the negative perception of continuing to exploit the live borrow die strategy the wealthy use.

Jeff bezos and bill gates sell stock to pay for things and taxes. Why is this any different?

[CordMcNally]

Why would you attempt to manipulate it in a way that would be perceived as negative?

These are his options granted as part of his pay package in 2012, there is nothing hidden or cryptic in this at all. They expire soon and need to be dealt with.

Why even create a poll if he knows what he is already going to do? Hoping that people vote yes and then he sells as previously planned so it makes it looks like he'll just willynilly listen to Twitter polls? He almost always makes things much more complicated than they need to be.

[Tim]

More margin available?

[Zaphod]

Or this is just a ploy and for show for when he is actually manipulating the market?

Why would you attempt to manipulate it in a way that would be perceived as negative?

These are his options granted as part of his pay package in 2012, there is nothing hidden or cryptic in this at all. They expire soon and need to be dealt with.

[Tim]

Or this is just a ploy and for show for when he is actually manipulating the market?

Elon manipulating the market? Who would have thought of that? The cool part is exercise is all current income.

[Lordosis]

Or this is just a ploy and for show for when he is actually manipulating the market?

[Zaphod]

The brother part seems shady for sure. Other members of the board have sold too. Though it’s not uncommon for board members to sell shares, especially when the share price is really high(tm).

Elon’s ceo compensation award is all stock options that expire soon. In order to exercise them, he needs to pay the tax bill which would be to the tune of around $12B in taxes.

He currently lives off margin/portfolio loans and doesn’t have $12B in cash laying around. I’m also not sure which bank would loan someone $12B to pay taxes even if their net worth was well higher than that.

So the only thing to do is sell some shares to exercise the options and get even more shares in return.

I don’t understand the whole Twitter poll or fanfare thing though.

This is exactly the case, he is basically forced to sell shares to accept shares/exercise options. Im sure he could get a loan but its pretty overly complicated and dumb. He could not exercise but that would be leaving billions on the table, also dumb.

Maybe the poll is simply pre warming the fan base and getting ahead of all the "musk is dumping" etc...takes that will inevitably happen.

[Nysoz]

The brother part seems shady for sure. Other members of the board have sold too. Though it’s not uncommon for board members to sell shares, especially when the share price is really high(tm).

Elon’s ceo compensation award is all stock options that expire soon. In order to exercise them, he needs to pay the tax bill which would be to the tune of around $12B in taxes.

He currently lives off margin/portfolio loans and doesn’t have $12B in cash laying around. I’m also not sure which bank would loan someone $12B to pay taxes even if their net worth was well higher than that.

So the only thing to do is sell some shares to exercise the options and get even more shares in return.

I don’t understand the whole Twitter poll or fanfare thing though.

[Brains428]

Elon puts out a twitter poll to see if he should sell 10% of his TSLA stock. His brother sold $110MM worth of it yesterday per filings.

Nothing to see here.

[Lordosis]

Even if it is overpriced it all depends on how long it can stay overpriced.

“The stock market can remain irrational longer than you can remain solvent.”

[Nysoz]

Interesting moves by Tesla today and yesterday.

I'm speculating it was a squeeze just like the initial GME one. After good earnings and the Hertz news, someone saw that basically all the call options were ITM. They bought enough shares and calls so the option writers 'had to' write more options. They then 'had to' buy more underlying shares to delta hedge the new options they wrote which kept squeezing up. Once people started profit taking, the option writers were then free to sell the shares back popping the bubble. All speculation for sure.

As for overpriced or not, at this level I think it's slightly overpriced. The earnings showed better margins and continued growth. The problem with comparing it to other OEMs is that making an EV just isn't the same as an ICE car. People are assuming the OEMs can just copy Tesla, but those factories and supply chains are big ships to turn around. OEMs will be very hard pressed to get close to the same profit margins as Tesla due to the vertical integration and continued innovation. OEMs also have to figure out what to do with their traditional dealership model.

This is also just their EV business. If they're able to pull a rabbit out of their hat with autonomy, AI, energy (like Amazon did with AWS), then the disruption will spill over into a lot of industries we may not even be able to imagine now.

Personally, I have my set shares I want so I'm not buying anymore, but diversifying into QQQ with new cash flow to have some stability in the portfolio and keep an even ratio in the future.

[xraygoggles]

Gotta give props where props are due: creating the #1 most valuable private company, and now #5 most valuable public company is nothing to sneeze at.

[CordMcNally]

Musk is now worth $288B, more than Exxon Mobil. Sadly that oil giant, which was once the biggest company in the world, is going downhill fast.

The likely energy issues coming this winter should help slow their skid.

[Kamban]

I thought I saw (but now can’t find it) that Tesla was now worth as much as the next 14 largest car manufacturers. Is Tesla overpriced, are the others underpriced, somewhere between, or is that an accurate price for all of them?

Musk is now worth $288B, more than Exxon Mobil. Sadly that oil giant, which was once the biggest company in the world, is going downhill fast.

When SpaceX becomes public and its price zooms, Must will be worth half a trillion dollars.