TSLA - Tesla Motors

[whatsup]

I warned everybody about Tesla... it being the most overvalued stock in all of history....
The price target is chapter 11...

C C , You talk sooooooo much rubbish , I bought ( 50 shares ) in Testa June 2017 @ $381 each and again ( another 50 shares ) @ $470 Jan 2020 sold 3/4 @ $402 after a 4 for 1 split !! this ant the last of Tesla it will be around for years as the leading E V despite Musk being a nutter just like must on the Ponzi crypot Ponzi !!

[Dassets]

I am not on a beat up Tesla or Musk crusade but will continue to comment on anything I think could be material. People can use the info any way they like. That is the way markets work. But rest assured I verify, if possible, the base facts that I base my comments on. Just basic 101 for analysts.

Anyway I have been surprised by no respite for the share price direction. I basically closed out around 170 expecting some sort of bounce. The fall is now has the potential to do further perhaps catastrophic damage. Put aside the negative implications for apetite for bond issuance which TSLA was gunning for after gaining investment grade rating.

This damage relates directly to Musk's own pledging of shares to support debt in his personal capacity. I did see 92m were pledged as at December 2020, this is pre Twitter btw. Kimble Musk and Gracias have both pledged the bulk their holdings but I will focus on Elon. At the end of Dec 2020 the share price was $235 and has dropped 48% since. Now Elon has qualified for granting of stock options so that is a positive. But he has taken on Twitter. Also I understand that Tesla limits directors on pledging stick to maxing borrowing at 25% of market value. This is a major info point. I presume that Elon is very likely to be either pledging more stock to meet lender colateral requirements and or Tesla board limits. OR he is selling more stock or needs to(I suspect it is possible he has been the last few days, getting a 3 day gap between selling and disclosure.

If Elon has pledged ( a lot) more stock Elon is super vulnerable to attack from short sellers and so is Tesla.

If my scenario is right then possible outcomes are truly very unpalatable. Indeed from a risk point of view it is a risk that few would take on due to the position Tesla could be in.

Now this analysis lacks insight to the value change of the other investments presumably for which the debt was used. But having key executives exposed to margin issues like this is something many companies and executives avoid for precisely the downside of such a strategy.

[whatsup]

If I recall correctly didnt he say this week that he had ended selling tesla stock ?

[Walter]

If I recall correctly didnt he say this week that he had ended selling tesla stock ?

He has said similar things before and sold. My memory is this time he said he will sell none in 2023.

[Walter]

There are a several issues in play. Elon and his situation, margin calls on the "retail" gamblers, whole market capitulation, the general economic outlook and the companies' finances. The last one is the one that I'm least worried about. Unless they have a need to raise capital the share price does not have much of an impact the health of the company. I remember a time when Apple was the equivalent of 30 cents a share, yet the company went from strength to strength.

[Dassets]

I forgot to mention something important. Elon is not allowed to sell any shares from exercised options for a period of 5 years from exercise. The reality of his statement about not selling more shares could be this, that he has now pledged all the shares that are saleable( and that could easily be the case). If the lenders exercise their right of sale because he can't remedy a breach or he is forced via court order to handover shares from options to lenders for sale then technically he could say he didn't make the decision to sell them.

He called Twitter wrong and this pledge problem is not going to go away. Media will pick up on it in the new year and start writing articles imo. Just like my earlier warning on Saylor and his bitcoin margin issues at Microstrategy and later media prick-up.

[Dassets]

My Xmas cracker had this joke in it...What has Tesla and a flat basketball got in common? Neither bounce.

[clearasmud]

Check out bestinTESLA.
This could have a big bounce
Chicken genius thinks $60.

[Crypto Crude]

C C , You talk sooooooo much rubbish , I bought ( 50 shares ) in Testa June 2017 @ $381 each and again ( another 50 shares ) @ $470 Jan 2020 sold 3/4 @ $402 after a 4 for 1 split !! this ant the last of Tesla it will be around for years as the leading E V despite Musk being a nutter just like must on the Ponzi crypot Ponzi !!

You wee slug nugget...
Your brag is lame...
Wahaank on buzz....
Clearly you will not get the level of approval from your peers you desperately seek ...

[Crypto Crude]

Check out bestinTESLA.
This could have a big bounce
Chicken genius thinks $60.

Chapter 11 I'd say