Elon's plan to sell 10% of his shares in Tesla...

[Ogre]

Addendum to the above. Market is really weird right now. Be safe with your money.

 

[Ogre]

This weeks score.

Rivian got $12b cash from investors.

Elon Musk got $26b cash from investors.

 

[Crissa]

Elon Musk got $26b cash from investors.

The US Government got 14 billion dollars cash from Elon Musk
California got two billion dollars from Elon Musk.

Nice payout for making an economy that can support his company. California alone has been about half Tesla's sales at times, and still a large portion of their IS sales now that they have factories elsewhere. For every Tesla sold to the Chinese market, about two are sold in California.

-Crissa

 

[Ogre]

Well it’s confirmed. Elon notified the SEC that Tuesday’s bomb drop was indeed him selling shares.

https://www.sec.gov/edgar/search/#/...01318605)&startdt=2021-11-01&enddt=2021-11-10

That’s a bit of a relief. It seemed like he had, but having the confirmation that we’re not going to have another bomb go off in the coming weeks is good.

 

[Crissa]

Yep, I just came to link the same thing.



So most of the drop is post his sale, which is hilarious.

-Crissa

 

[Ogre]

Yep, I just came to link the same thing.



So most of the drop is post his sale, which is hilarious.

-Crissa

Reading Rob’s comment, Musk only notified selling 2.15m shares on Monday and needs to sell a total of 22m. So it’s likely the smaller Monday drop was the first and the bigger drop yesterday was the rest of the shares going out.

We should see another SEC notification tomorrow or later today then.

 

[electricAK]

good to know!

 

[alan auerbach]

good to know!

I read in some place authoritative that Tesla makes nothing from selling cars but from offsets or permits or something of that ilk. Can somebody explain?

 

[Ogre]

I read in some place authoritative that Tesla makes nothing from selling cars but from offsets or permits or something of that ilk. Can somebody explain?

The explanation is simple: It’s not true.

Tesla’s margins are 30% right now. A Model Y rolling off the line costs Tesla about $40,000 and sells for $60,000.

There was a false narrative passed around for a while that Tesla lost money on every car they make. That might have been true on the very first few models but hasn’t been the case for some time. It just took time for the profit Tesla makes per car to exceed the expenses and depreciation associated with running multiple factories.

 

[Crissa]

That Tesla 'lost' money on making cars was always predicated on balancing all investment and loans Tesla had ever vs the number of sales they had in a year. And then taking the quarter they were profitable and then comparing it to the regulatory credits.

But that's not how anyone actually operates. You price your products and sales and aim at just making profit. Too much profit per sale and you choke out sales and have diminishing returns; too little profit per sale and you might end up not being profitable!

And they couldn't get the regulatory credits without selling cars! Of course the regulatory credits were near the amount equal to their profit - they were the least predictable of revenue. You could make the same argument about any slice of revenue about the size of the profit.

-Crissa

 

[Ogre]

Too much profit per sale and you choke out sales and have diminishing returns

Tesla is trying to choke out sales a bit. It isn’t working yet.

I almost think it’s working the opposite-wise. Every time Tesla raises prices sales increase from people worried they need to buy before Tesla increases prices too much!

I was listening to the Ride the Lightning podcast and just this weekend he told people if they were on the fence they should pull the trigger now before Tesla increases prices again!

 

[Crissa]

Yeah, the raised price generated a news article, which gets them more eyeballs, which gets them more FOMO (fear of missing out) purchases.

It isn't something Tesla can count on in the long term, but people will just be surprised when it ends. They always are.

-Crissa

 

[Quicksilver]

I don't know how many shares of Tesla Elon has sold and how it affected the market.
I do know the price dropped below a thousand a share this morning and I bought three more shares.
If I received a windfall I would drop three fourths of it on Tesla today.
I'm in for the long haul or whenever my CT gets built.
If the stock is still climbing I may just sell enough for a decent down payment and finance the rest if I think the dividends will offset the interest I would have to pay on a 72 month loan.

 

[FutureBoy]

OK, what an amazing 2 weeks it has been.

TSLA closes at $1229.91 on 11/4.
Elon starts selling a ton of stock, to pay a huge tax bill.
TSLA drops to a low of $980.25 on 11/15
But in spite of more Elon sales this week, the stock just closed at $1137.06

In the meantime, there have been multiple prognosticators upping their projected TSLA price.

The next couple of weeks and especially on to the Q4 results are going to be very interesting.

 

[Ogre]

OK, what an amazing 2 weeks it has been.

TSLA closes at $1229.91 on 11/4.
Elon starts selling a ton of stock, to pay a huge tax bill.
TSLA drops to a low of $980.25 on 11/15
But in spite of more Elon sales this week, the stock just closed at $1137.06

In the meantime, there have been multiple prognosticators upping their projected TSLA price.

The next couple of weeks and especially on to the Q4 results are going to be very interesting.

This has been a *very* profitable month trading Tesla. The next few weeks is looking like it is going to be nearly as good to me. (Possibly a lot better if a long shot hits)

That second Cybertruck I pre-ordered on a whim might actually be attainable.