What if our $100 reservation was invested in TSLA?

[Sirfun]

Todays big move in the price of TSLA got me thinking about what my $100 reservation had been invested into Tesla stock. Well on 11/21/19 TSLA closed at the equivalent of $23.65. So that means 4 shares with some left over cash. Well, today TSLA closed at $257.18. So 4 shares would be $1028 and some change.

I wonder what Tesla did with our reservations. Would have been awesome if they invested it in TSLA for us.

 

[GSXR150]

Maybe the Cybertruck backseat is a time machine...

 

[Kahpernicus]

Dont' forget the 3:1 split in 22.

Also, tesla built austin with your reservation.

 

[C T Rick]

Not sure what Tesla is allowed to do with our $100. Fully refundable deposits. While it sounds like a lot of money, it truly is peanuts in the grand scheme of things for a company like Tesla. More of good faith money that’s refundable.

Now the good news. Months (3/20)after the free infomercial with the broken windows, I purchased 100 shares And I can tell you it was not $23.65 a share. More like $577.00 a share. Sold off enough when it got into the 900+ a share to cover my investment. The balance has then done a 5/1 and a 3/1. The 5/1 made the stock jump. The 3/1 it went backwards.

So yes, Elon is purchasing my Cybertruck for me. But it’s in my Ira account and either I pay the capital gains on the investment, or I come up with the money with non retirement funds.

Not everything is a sure fire investment. Such as my Lordstown Motors, Fisker Motors, and even Ford to name a few. So not everything is roses. But fortunately there is ? ?.

Rick

 

[Arctic_White]

Dont' forget the 3:1 split in 22.

Also, tesla built austin with your reservation.

This is false. By law, Tesla cannot touch or use any of the deposit money. It shows up as a liability in Tesla's balance sheet.

Stop spreading incorrect information.

BTW, Tesla has had enough cash to build out multiple factories. They don't need to use the deposit money.

 

[ÆCIII]

What @Arctic_White said above, and also,

One's reservation might be kind of an investment in TSLA from an indirect intangibles perspective, because the number of reservations may (at least indirectly) drive investor sentiment and move the needle slightly as it were.

But Tesla doesn't need nor would ever appropriate reservation funds as accessible revenue. Unlike many banks which actually are not trustworthy places to put money, Tesla has higher standards.

This was certainly a more relevant question for those who were dropping $5K each to make Nikola Badger reservations back in 2020.

- ÆCIII

 

[Arctic_White]

What @Arctic_White said above, and also,

One's reservation might be kind of an investment in TSLA from an indirect intangibles perspective, because the number of reservations may (at least indirectly) drive investor sentiment and move the needle slightly as it were.

But Tesla doesn't need nor would ever appropriate reservation funds as accessible revenue. Unlike many banks which actually are not trustworthy places to put money, Tesla has higher standards.

This was certainly a more relevant question for those who were dropping $5K each to make Nikola Badger reservations back in 2020.

- ÆCIII

You raise a great point about Tesla and its standards.

Something else that really impresses me: while the majority of tech / IT companies have a safe haven for their taxes (aka, they have their head office registered in Ireland to save on taxes), Tesla is the only US company that is headquartered in the US and they pay all applicable taxes. Even though Tesla could save taxes, they don't want to do that. They are paying their fair share!

Yet we have folks in the US government hell-bent on making Elon look bad. That is so sad. I'm not even an American yet I feel bad for all the stupid politics and the games your country plays.

 

[TyPope]

Not sure what Tesla is allowed to do with our $100. Fully refundable deposits. While it sounds like a lot of money, it truly is peanuts in the grand scheme of things for a company like Tesla. More of good faith money that’s refundable.

Now the good news. Months (3/20)after the free infomercial with the broken windows, I purchased 100 shares And I can tell you it was not $23.65 a share. More like $577.00 a share. Sold off enough when it got into the 900+ a share to cover my investment. The balance has then done a 5/1 and a 3/1. The 5/1 made the stock jump. The 3/1 it went backwards.

So yes, Elon is purchasing my Cybertruck for me. But it’s in my Ira account and either I pay the capital gains on the investment, or I come up with the money with non retirement funds.

Not everything is a sure fire investment. Such as my Lordstown Motors, Fisker Motors, and even Ford to name a few. So not everything is roses. But fortunately there is ? ?.

Rick

Ford was at $8.90 in November of 2019 and is now at $12.08 which is a direct return of PLUS, they've paid $1.75 per share in dividends since then.

It's gone up in value 36% and also has paid you 19.6% on your initial investment. While that isn't a screaming hot rise in money, it's not exactly shabby.

I feel your pain on Lordstown, though, and raise you Rivian and Nikola... ?

 

[Kahpernicus]

This is false. By law, Tesla cannot touch or use any of the deposit money. It shows up as a liability in Tesla's balance sheet.

Stop spreading incorrect information.

BTW, Tesla has had enough cash to build out multiple factories. They don't need to use the deposit money.

Yes they can't touch the money, directly .

They can only use it to leverage loans.

Tomatoe, potatoe.

 

[Arctic_White]

Yes they can't touch the money, directly .

They can only use it to leverage loans.

Tomatoe, potatoe.

Margin you say? Which bank would allow them the loan from just the refundable deposit? Answer: none.

As I said, it's a red herring when people talk about deposits. It is not cash to Tesla nor is it an asset. It's a liability and Tesla is legally prohibited from using it.

 

[Gurule92]

Todays big move in the price of TSLA got me thinking about what my $100 reservation had been invested into Tesla stock. Well on 11/21/19 TSLA closed at the equivalent of $23.65. So that means 4 shares with some left over cash. Well, today TSLA closed at $257.18. So 4 shares would be $1028 and some change.

I wonder what Tesla did with our reservations. Would have been awesome if they invested it in TSLA for us.

So the scalpers who bought 10 could've made some good money without being *****

 

[Gurule92]

Margin you say? Which bank would allow them the loan from just the refundable deposit? Answer: none.

As I said, it's a red herring when people talk about deposits. It is not cash to Tesla nor is it an asset. It's a liability and Tesla is legally prohibited from using it.

I don't think Tesla needs a loan, but to play devil's advocate here. If a company asks for a loan and has a specific number of backers/orders they are able to show demand for the product they need the loan to make which could lead to favorable outcomes.

Again, I don't think Tesla needs help like that but it would be a use case.

 

[Sirfun]

Not sure what Tesla is allowed to do with our $100. Fully refundable deposits. While it sounds like a lot of money, it truly is peanuts in the grand scheme of things for a company like Tesla. More of good faith money that’s refundable.

Now the good news. Months (3/20)after the free infomercial with the broken windows, I purchased 100 shares And I can tell you it was not $23.65 a share. More like $577.00 a share. Sold off enough when it got into the 900+ a share to cover my investment. The balance has then done a 5/1 and a 3/1. The 5/1 made the stock jump. The 3/1 it went backwards.

So yes, Elon is purchasing my Cybertruck for me. But it’s in my Ira account and either I pay the capital gains on the investment, or I come up with the money with non retirement funds.

Not everything is a sure fire investment. Such as my Lordstown Motors, Fisker Motors, and even Ford to name a few. So not everything is roses. But fortunately there is ? ?.

Rick

The $23.64 price is adjusted, after both of the splits.

 

[C T Rick]

The $23.64 price is adjusted, after both of the splits.

Correct, but a $100 back then would have probably just purchased you a 1/5 of a share.

I typically like splits as it allows the younger crowd to buy real shares and typically will make the stock jump..even though in reality a you're basically getting 4 quarters for a $1.00. The 5 to 1 was the same day as apples 4 to 1. Both stocks jumped.. unfortunately the last 3 to 1 split never helped us.

What I found with splits is you own a heck of a lot more of the same company. So small changes become large changes for the better or the worse.


Rick

 

[Sirfun]

Correct, but a $100 back then would have probably just purchased you a 1/5 of a share.

I typically like splits as it allows the younger crowd to buy real shares and typically will make the stock jump..even though in reality a you're basically getting 4 quarters for a $1.00. The 5 to 1 was the same day as apples 4 to 1. Both stocks jumped.. unfortunately the last 3 to 1 split never helped us.

What I found with splits is you own a heck of a lot more of the same company. So small changes become large changes for the better or the worse.


Rick

You're correct. One share was way over $100 in 2019. My bad.