Yes, Tesla Stock lost just about half of their overpriced value...they're going to continue to crater...and there will be stockholder lawsuits if this keeps up.
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Yeah that's called Fiduciary Duty. That is, the company has to legally and ethically make money for the shareholders/stock holders. Tanking your own publicly traded company is considered a breach.
Yeah. The case regarding his comp package was fascinating because the main plaintiff was a guy that owned like 10 shares. It’s basically the whole reason Elon is trying to move to Texas from DE, a state with a much more robust corporate legal system.
Once Elon's investors come down from their shared ketamine high they'll come to realize that not only is he destroying his own company but that Tesla is just a car company. Not an AI company. Not a robot company. A car company. And the P/E ratio of car companies would make this a $30-$50 stock
A lot of Tesla's revenue comes from carbon credits. Trump may destroy it. Other makers are making more EVs and hybrids, reducing their carbon footprint. Tesla can't cost more than BMW (BMW sells more cars and they cost more). So $16 is the max for Tesla stock.
The shareholders can sue each board member for breaching their fiduciary duties. Since they are not covered by board insurance in that case, they are personally liable.
Lapdogs or not, they have a serious problem on their hands.
The scariest thing I heard about Teslas was in some cases, if it starts on fire, you cannot open the automatic doors and people have burned alive. Eeks
Please KEEP IT UP and please get the lawsuits going. The Tesla Twit needs to be bankrupted and given a row boat and told to row his fat ass back to South Africa.
As the kids say, The grift is real. Though them "contracts" in the USA is finite. Internationally like Canada, Mexico, and the EU...it's going to crush him.
Still a 20% gain since before the election. It was at 150 last April. I will start caring once it goes below 200. Until then this is all “hey, the corruption hasn’t paid off as much as it could have!”
He's going to care, if his cabinet tells trump to just disband DOGE right now, and cancell contracts. Plus, those stockholder/shareholder lawsuits are very expensive so he's not going to be enjoying the fruits of his ill-gotten labor. All Musk had to do was literally sit on his thumb, that's it.
TSLA fundamentals were not that great prior to the election, and they are even worse now. The post election rocket was rising on hot air, not fundamentals. There is nothing to save it now. Q1 earnings gonna C R A S H.
Publicly traded companies had gone under before...in fact Tribune was voluntarily de-listed then mostly was gobbled up by Nexstar. It can happen. Also the morale at these companies are now at an all-time low.
Perhaps overly simplistic: as the stock falls, he will have to sell into this decline to pay his debts or file for bankruptcy. His top employee has tons of experience filing for bankruptcy and cleaning out the company before doing so.
Sorry I couldn't get back to you, but yes, it's reminding me to Game Stop being the meme stock...yes, redditors actually destroyed a hedge fund who wanted to short the stock and made them lose money.
isn’t musk leveraged on twitter through tesla stock? I feel like I remember something about this and wonder what the price cratering relationship to the shares might be
From Wikipedia: "(In Apr. 2022)
The funding included $7 billion of senior secured bank loans; $6 billion in subordinated debt; $6.25 billion in bank loans to Musk personally, secured by $62.5 billion of his Tesla stock; ..."
"... $20 billion in cash equity from Musk, to be provided by sales of Tesla stock and other assets; and $7.1 billion in equity from 19 independent investors."
I don't know how much of that debt is still outstanding.
I'm not either. I just know that people can borrow against their assets, but they can be in trouble with their creditors if the assets lose a lot of value.
If I can find out the current status of those loans against his Tesla stock, I'll come back.
I thought the DE judge approved the move. Honestly if someone is a Tesla shareholder and approves of the move to a state like TX, where Elon owns all the politicians, they deserve to lose their life savings
But it should keep up. It’s still overvalued. If anything he is working on is profitable in the future, it happens outside of Tesla. Tesla will simply be a customer to his AI. SpaceX, not part of Tesla. Grok, X, Neuralink, Starlink, all outside of Tesla. It’s a car company with falling sales.
$100 is about the value. I mean, they ARE a car manufacture, and not a small novel one. They ARE relevant in China and Europe, even with falling sales, they are not going away soon. $100 million is ok, of course, Mr. Musk has then more debt then value, too bad
Tesla can't cost more than BMW, Tesla sells less cars and their average price is smaller than BMW's. So fair Tesla market cap is not more than $50B, or stock price under $16.
I would not pit BMW or any legacy brand against Tesla because ICE is on its way out.You can only look at EVs.And there,BMW is nothing.Yes, in some markets ICE is going for another 10 years,but the uptick of EVs is faster then thought,once they become cheaper, they already reached parity, ICE is done
Yes, because Europe is still asleep, while China is awake. The US put 100%, soon 200% tariffs on but it will not be enough. China builds renewable Energy in record time so with cheap electric they can build cheaper cars. US got Tesla, not much else. China is the big winner, the US is too slow.
Probably! But always be careful shorting! Unexpected rises can always happen and technically speaking shorting can lead to unlimited losses. Know your thresholds to pull out at and never risk an amount more than you can afford to lose.
He just needs to walk away from all this. There was a time where people really admired Elon. (Even though all the while he was a con man). He could have stayed just and eccentric conman with hairplugs and multiple kids. But then he started using drugs. At this point he just needs jail or deportation
Marketing 101...once you're the face, you gotta own up to any mistakes that happens. For example, He was the face for Tesla and Spacex, but well...you know.
As much as I’d like it to be true, that spike was a bubble and any shareholder with an ounce of sense knows it. It was always gonna come down bc it had no business being up.
As long as the price doesn’t go below and STAY below 200 nothings gonna happen bc it’s still a net win relative to pre-2021
Tesla was up because of its first mover and only real player status. Those things don’t matter any more. Leon’s popularity has gone beyond its sell by date and he has, single handedly, destroyed Tesla’s value in just days.
What matters is share price relative to purchase price for shareholders. The bubble at the end of the yr was just that. No one who understands anything would expect that to stay.
If his stock arrests around 200 they’re all still gonna be happy.
True - but a lot of buy in has occurred since then. And the shareholders of the big investors will be mad too. They know this trend ain’t reversing.
Either way - I hope they crash and burn (as swasticars do), too 🔥
Whoever buys the bumps are fools anyway. The majority will be content with 200, but I do hope it goes to hell. Else n would do best to step down from leadership to save it
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Lapdogs or not, they have a serious problem on their hands.
He's a damaged man. An abusive father really can have real word consequences.
#FireElon
Others say it will crater down 90%.
Either is just doom in a time when everyone else is breaking into the EV segment.
Even after the drop in Tesla's stock, it is still WAY overpriced.
A value investor may want to venture in at around $46.
Hopefully it will be a Western automaker and not Chinese
The funding included $7 billion of senior secured bank loans; $6 billion in subordinated debt; $6.25 billion in bank loans to Musk personally, secured by $62.5 billion of his Tesla stock; ..."
I don't know how much of that debt is still outstanding.
If I can find out the current status of those loans against his Tesla stock, I'll come back.
https://www.cboe.com/us/equities/market_statistics/short_interest/
https://www.nasdaq.com/market-activity/stocks/tsla/short-interest
https://youtu.be/A7OlQG9C4zM?si=rJDOqo4A4ydQD_D2
As long as the price doesn’t go below and STAY below 200 nothings gonna happen bc it’s still a net win relative to pre-2021
If his stock arrests around 200 they’re all still gonna be happy.
Sadly. I do hope it tanks
Either way - I hope they crash and burn (as swasticars do), too 🔥