TSLA 2019
- Thread starter nursebee
- Start date
The stock is free falling ($185 premarket), margin call territory, and the markets ain't helping either. I am still surprised by the lack of bounce...
When it rains, it pours:
TWO DAYS OF TESLA NEWS
5/23/19
1. CODE RED – Dan Ives at Wedbush sounds a “code red”, citing concerns about the “trajectory of Tesla’s growth.”
2. $10 TARGET – Morgan Stanley, Musk’s private banker, cuts its downside target on Tesla to $10 per share, stating “demand is at the heart of the problem.”
3. $35 TARGET – Citigroup issues a downside target 85% below the current price, citing “lingering demand and free cash flow problems.”
4. CONSUMER REPORTS – Consumer Reports issues a damning report on Tesla autopilot, saying it creates a “safety risk” for drivers. Investors grow concerned about potential legal liabilities.
5. INSIDER SELLING – Bloomberg publishes an article showing that Tesla insiders are selling at the fastest pace in more than six years.
6. RESTRUCTURING STORY? – Alarmingly, Morgan Stanley conducts a private call with investors and tells them Tesla is now a “distressed credit and restructuring story.”
When it rains, it pours:
TWO DAYS OF TESLA NEWS
5/23/19
1. CODE RED – Dan Ives at Wedbush sounds a “code red”, citing concerns about the “trajectory of Tesla’s growth.”
2. $10 TARGET – Morgan Stanley, Musk’s private banker, cuts its downside target on Tesla to $10 per share, stating “demand is at the heart of the problem.”
3. $35 TARGET – Citigroup issues a downside target 85% below the current price, citing “lingering demand and free cash flow problems.”
4. CONSUMER REPORTS – Consumer Reports issues a damning report on Tesla autopilot, saying it creates a “safety risk” for drivers. Investors grow concerned about potential legal liabilities.
5. INSIDER SELLING – Bloomberg publishes an article showing that Tesla insiders are selling at the fastest pace in more than six years.
6. RESTRUCTURING STORY? – Alarmingly, Morgan Stanley conducts a private call with investors and tells them Tesla is now a “distressed credit and restructuring story.”
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Man - those ARK millennials are truly dyed in the wool Tesla fans. What was the projection, $4000/share by 2021? (did I hear that correctly?).
And that is all based on their assumed "first to market" advantage in the autonomous vehicle taxi market. I do understand the advantages they have right now, but I also wonder if the profit projections are anywhere close to reality, and I also wonder how much of a moat they have once EVs are being made by other carmakers.
The ARK speaker said their road use data alone is insurmountable, because there are already so many Teslas on the road gathering, but it does not have to be an EV to acquire much of that data - you could put the same detection systems into any car (like a Ford escort) if your only goal was to gather data about road conditions.
Also - what exactly is the attraction of a driverless taxi. The implication was the car could be operated for about 1/10 the cost of a driver taxi (EV or otherwise) - but the assumption is that many more people will be giving up cars because of this affordability. But don't people LIKE having their own car, and can't you buy a very decent utile vehicle as nice as a taxi for $200- $300/month. I like knowing my car is right outside and fits everything I need to carry. (plus, it's paid off)
I see their points, but it is like they expect 50% of America to stop buying cars and go to ride hailing full-time in 2 years. I just don't see that big a change that fast. Perhaps in 10-20 years, but not overnight.
And that is all based on their assumed "first to market" advantage in the autonomous vehicle taxi market. I do understand the advantages they have right now, but I also wonder if the profit projections are anywhere close to reality, and I also wonder how much of a moat they have once EVs are being made by other carmakers.
The ARK speaker said their road use data alone is insurmountable, because there are already so many Teslas on the road gathering, but it does not have to be an EV to acquire much of that data - you could put the same detection systems into any car (like a Ford escort) if your only goal was to gather data about road conditions.
Also - what exactly is the attraction of a driverless taxi. The implication was the car could be operated for about 1/10 the cost of a driver taxi (EV or otherwise) - but the assumption is that many more people will be giving up cars because of this affordability. But don't people LIKE having their own car, and can't you buy a very decent utile vehicle as nice as a taxi for $200- $300/month. I like knowing my car is right outside and fits everything I need to carry. (plus, it's paid off)
I see their points, but it is like they expect 50% of America to stop buying cars and go to ride hailing full-time in 2 years. I just don't see that big a change that fast. Perhaps in 10-20 years, but not overnight.
That’s you. 16-17 yr olds are taking Uber more and owning less cars. Also you left out the rest of the costs associated with owning a car like gas, insurance, maintenance, drunk driving, annoying traffic while being the driver. That trend will continue into their adulthood. As soon as my lease is up in two months I’m going carless for as long as I can push it.
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Unless the birth rate drops to zero... who wants to shuttle their kids around in a friggin Uber?
Depends on their age 15 and older. I used to take the public bus by myself at 14 to get home from school. Not the yellow bus the public bus. I’m sure lots of parents do that now.and if the cost is brought down 1/10 The cost of Uber to quarters a mile as Elon says he will the parents can ride along and also be dropped off at work. As it is there are scooters zipping all along Miami with people getting to work lol. Times are changing
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