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So glad I own TSLA!!!

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  • Oct 25th, 2020 1:49 pm
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Newbie
Aug 16, 2020
10 posts
4 upvotes
I'd like to start buy some shares when it hits sub $200 (yes sub $200).
Deal Fanatic
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Oct 23, 2003
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tdpe123 wrote: I'd like to start buy some shares when it hits sub $200 (yes sub $200).
battery day selloff

pre-election sell off

Biden win selloff

$200 is quite possible.
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Sep 21, 2004
10401 posts
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Calgary
Buggy166 wrote: battery day selloff

pre-election sell off

Biden win selloff

$200 is quite possible.
Have you looked at the Dem's platform? They are all in on renewable and sustainable energy. Instead of pushing for a carbon tax which is contentious, they are much smarter this time.

I believe one of the policies to to bring the $7500 Federal EV incentives up to 600,000, instead of the current 200,000. Right now Tesla is at a disadvantage in the US since they have exhausted their 200k quota. Despite at a $7500 disadvantage against all other competitors, they are capturing 80% of the EV market in US. Can you imagine what their market share is if they re-qualify for the $7500 incentive?

Also the solar tax incentive in the US is phasing out in 2 or 3 years. You can bet it will be extended or even expanded. A Biden administration, plus Dem House or and Senate, will be a massive tail wind for Tesla and all clean energy companies.
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Oct 23, 2003
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b166er1337 wrote: Have you looked at the Dem's platform? They are all in on renewable and sustainable energy. Instead of pushing for a carbon tax which is contentious, they are much smarter this time.

I believe one of the policies to to bring the $7500 Federal EV incentives up to 600,000, instead of the current 200,000. Right now Tesla is at a disadvantage in the US since they have exhausted their 200k quota. Despite at a $7500 disadvantage against all other competitors, they are capturing 80% of the EV market in US. Can you imagine what their market share is if they re-qualify for the $7500 incentive?

Also the solar tax incentive in the US is phasing out in 2 or 3 years. You can bet it will be extended or even expanded. A Biden administration, plus Dem House or and Senate, will be a massive tail wind for Tesla and all clean energy companies.
yea but you're looking at details when 99% of sheep simply react to news based on preconceived conceptions...in this case dems = anti business & pro regulation = less profits

its not a Tesla tied thing, or green energy specific. Its the notion of democrats in power = anti business.
Deal Addict
Aug 17, 2008
4294 posts
3435 upvotes
Would a reasonable person, as defined by law, on the selection committee propose TSLA for inclusion into the index in the next Q or wait?

Elon Musk’s Payday Could Cost Tesla Shareholders Dearly
The accounting effect of options awards for Tesla’s CEO could push it into a loss and disqualify the company from S&P 500 index inclusion for a long time
Sept. 10, 2020 11:17 am ET

https://www.wsj.com/articles/elon-musks ... 1599751042

Excerpts;

"those option grants need to be expensed according to generally accepted accounting principles. That is the standard the index-inclusion committee uses."

"Tesla had recognized some of these expenses ahead of time as the milestones came into sight. For instance, the company recorded an expense of $72 million in the fourth quarter of 2019. Tesla recorded $347 million in stock-based compensation expense in the most recent quarter, which was an increase from past periods but still low enough for the company to churn out a profit according to GAAP."

"While the selection committee could opt to include a new company at any time and make exceptions to its rules, the rules call for a GAAP profit in the most recent quarter and cumulative profitability over the previous four. A third-quarter net loss of just $226 million would put Tesla in the red over the past four quarters. Given the size of the options awards and the recent gains in Tesla’s share price, a billion-dollar quarterly compensation expense is within the realm of possibility."
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Mar 27, 2007
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One of the major differences between GAAP & non-GAAP for Tesla is employee compensation/grants. Cumulatively for the past 4 quarters, employee comp > regulatory credits received from other automakers.

If Tesla chose not to expand so aggressively (billion dollar factories in Austin & Berlin, factory expansion in China and Nevada), this wouldn't be an issue.

It is likely an oversight by the compensation committee to tie Elon's compensation to share price, and not gross revenue or profits, but overall I don't think this will matter much. Either Tesla gets in the S&P500 in the next few months, or they will get in within the next few years once capex decreases or revenue increases as factories come online.
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May 19, 2005
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Markham
I guess FOMO is back
Some people just don't get that online forum posts shouldn't always be taken seriously.
Newbie
Jul 22, 2018
70 posts
39 upvotes
ItechJester wrote: One of the major differences between GAAP & non-GAAP for Tesla is employee compensation/grants. Cumulatively for the past 4 quarters, employee comp > regulatory credits received from other automakers.

If Tesla chose not to expand so aggressively (billion dollar factories in Austin & Berlin, factory expansion in China and Nevada), this wouldn't be an issue.

It is likely an oversight by the compensation committee to tie Elon's compensation to share price, and not gross revenue or profits, but overall I don't think this will matter much. Either Tesla gets in the S&P500 in the next few months, or they will get in within the next few years once capex decreases or revenue increases as factories come online.
wouldnt you want the ceos compensation to be tied to share price? isnt that their job?
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Feb 15, 2005
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Tying compensation only to the stock price causes CEOs to make short-sighted decisions that only increase the share price with little value added to the enterprise. Firing staff to increase margins makes the share price go up... banks seem to do this every quarter despite record profits.

TSLA is a bit different in that the majority of Elon's wealth is tied up in the stock options and the fact he owns around 20% of the company. Compare this to the CEOs of other car makers, who often own less than 0.2% of the company.
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May 19, 2005
3893 posts
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Markham
tigerdemi wrote: A very good day heh
Too hot. I’m out with $100/share profit. That’s only in a week. I’ll be back if it goes below $400 again.
Some people just don't get that online forum posts shouldn't always be taken seriously.
Member
May 3, 2010
353 posts
84 upvotes
Jonavin wrote: Too hot. I’m out with $100/share profit. That’s only in a week. I’ll be back if it goes below $400 again.
I am sitting at $82 in profit in 3 days with a $20k buy. As much as it is tempting to offload for a tidy profit in 3 days, I am keen on keeping it for the long haul though. Risky play, I know.

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