The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
My short positions have performed very well since I opened them at just over $880. The price is on the way down dear cult followers. The end is nigh. Get your money and run for dear life. The correction Messiah is coming and my clan are circulating and circling the meal to come. Mmmm Tesla.....the weak are meat and the strong do eat!
The Tesla Cult followers are very protective over their leader Elon. To join this special cult you have to forfeit your common sense and rationale altogether and then hand over your money to Elon in exchange for shares in his imaginary based valuation car company.
Yes of course there is definitely something criminal going on in the background. Recently, the Gamestop Saga started to unravel the level of corruption. Melvin Capital, Citadel and the trading platforms are in bed together and the FCA is definitely complicit somewhere because their inaction over the freezing of trades and market manipulation is highly questionable. At one point we could only short Gamestop because the buy option was disabled and then out of the blue we could only buy and the short sell option was disabled and then the whole thing just stopped taking orders. This seems like manipulation if the only option is to short or buy a stock at the choosing of the platforms who are financially connected to the hedge funds.
Very true indeed. The current valuation equates to roughly $1.6M per car sold. Tesla cars are not worth $1.6M a car, this is fantasy and it will wear off like a mirage when the delusion starts to wear thin.
The only difference between sentiment and hot air is that hot air turns cold as it rises because heat rises and we know the point at which it cools down but sentiment is dangerous because the momentum could stop at anytime and the current state of the economy is clearly showing a disconnect between reality based fundamentals and the share prices of companies. Look around and see the cycle of Pump and Dumps and the heard of sheep-like amateur buyers following. Elon is charismatic and not a bad person in general but like all top CEOs, he too has a dark ulterior motive unknown to his cult followers. If we keep living in a world where companies are valued according to popularity contests based sentiment then we all stand to lose because popular trends come and go. It's hard to convince those in a cult to see the error of their ways until it's too late so lets all sit back and enjoy the movement because clearly you are all convinced Tesla is worth 1 trillion based on future promises of innovation in various other diversified sectors. When the government stop pumping free money into the economy and interest rates rise to match inflation, then we will have a review of opinions.
How can a company with a handful of factories be valued at nearly a trillion whilst the competition who outsell them at every turn are at a miniscule amount in comparison? The stock market is like a game of musical chairs right now and I do hope your portfolio is diverse enough when correction comes. On what basis is Tesla even worth $800 billion? The market is irrational and just based on euphoric unrealistic sentiment
How can a company with a handful of factories be valued at nearly a trillion whilst the competition who outsell them at every turn are at a miniscule amount in comparison? The stock market is like a game of musical chairs right now and I do hope your portfolio is diverse enough when correction comes. On what basis is Tesla even worth $800 billion? The market is irrational and just based on euphoric unrealistic sentiment
The Biden Green initiatives and acts are only a life line for Tesla as the loss of regulatory compliance credits will still impact the revenue and profits in a major way. The green initiatives will require Tesla to increase production and hope to sell every car in order to benefit from the green act. Overproduction with no real customers is just a waste. The cap was originally at 200,000 and moving it up only pressures Tesla to produce more and other car manufacturers will also ramp up production and the government will reconsider as it may cost them too much to subsidise something that is not necessarily beneficial. Tesla worshippers need to stop the over bearing dreams of a stock that is already blown up beyond sustainable.
The Biden Green initiatives and acts are only a life line for Tesla as the loss of regulatory compliance credits will still impact the revenue and profits in a major way. The green initiatives will require Tesla to increase production and hope to sell every car in order to benefit from the green act. Overproduction with no real customers is just a waste. The cap was originally at 200,000 and moving it up only pressures Tesla to produce more and other car manufacturers will also ramp up production and the government will reconsider as it may cost them too much to subsidise something that is not necessarily beneficial. Tesla worshippers need to stop the over bearing dreams of a stock that is already blown up beyond sustainable.
I see that Tesla has some strong cult followers indeed. I take it you are a grand Priest or Duke in the Tesla worshippers cult then ay? Well, like I said before, reality and assumptions are two different things and when they meet, the difference is usually magnified. You guys are blowing too much hot smoke over a company still in its infancy.
By the time all these things happen, the competition will be strong on its feet and ready to challenge Tesla. Not to forget that most car manufacturers are stronger and more established with more loyal customer base and better experience. Even if they build ten Terra-Factories, it won't keep the price this high.
Tesla is the new Titanic cruise ship liner. They say it's unsinkable until the cold iceberg of reality sinks it into the abyss of realisation. The ships captain has even started to deploy the Bitcoin lifeboat in search of escape without being noticed. No jumpers for years you say? Don't worry, the Tesla cliff is so high it takes years to reach the top and we are there now so the fall should be pretty epic ??????. The fall is very painful, each time the Tesla cult followers hit a jagged rock on the way down they believe it's the end of the fall.only to realise they are still not even half way down yet.
There are times when common sense defies reason and times when reason defies common sense. This time is neither one of them, it is just a plain old crazy bubble and the people in a cult and a bubble don't realise the truth until they are out of it. They don't realise that there is nothing special or unique about Tesla at all. Nothing new under the Sun is happening or being done. They are just speculating at every earnings report and promising magic bags of gold and delivering sand and calling it the "ultimate sand". It's a hypnotic trance and Elon is a powerful wizard but other wizards are getting envious by the day. We the vultures are just flying around waiting at the cliff's edge to claim our free meat from Tesla cult followers once they jump over a cliff hoping to fly to the moon on an imaginary valuation based on hearsay and lies. "The weak are meat and the strong do eat!". Chow!
This is what I believe is happening to Tesla and a large number of stocks around the globe https://www.investopedia.com/articles/stocks/10/5-steps-of-a-bubble.asp
We are approaching the end of the Euphoria stage and pretty soon the cash out stage will come and end the party abruptly. Read the article above and see if you can draw parallels to Tesla.
Senvion is returning from restructuring as a stronger company. With Siemens Gamesa buying them out, they are pretty much one company with a strong position. Watch the price rise
Anyways, Away from our differences with Tesla. Has anyone noticed the clear and obvious market manipulation happening wirth Citadel, Melvin Capital and platforms such as Trading 212, Robinhood and many others? The platforms are clearly limiting short sell and buy orders to suit hedge funds and are even resorting to limiting access for users during share price rises. What happened with Gamestop should be investigated but the SEC and FCA would never dare because they are all clearly colluding and it is as clear as day. On trading 212, no one could open buy positions but short sell positions could be opened which meant the price could only go down if the only option is shorting. Then the short sell switched off and only buy positions could be opened up to a certain point. and then the whole thing just went off on users and the price of gamestop just plummeted. Strange ha?
Enjoy your pie while it lasts. I never said Space x, the boring company and the other unrelated projects are part of Tesla. I clearly indicated that the deluded amateur buyers believe they are also buying a share in these just by buying into Tesla shares. Of course i know they are disconnected and no you are not buying the future, you are buying an exaggerated preview of what may be long after you are gone from this world. Tesla is over valued and once those tasty regulatory credits stop, the party will get interesting. We the vultures have a saying amongst our clan......"The weak are meat and the strong do eat!" Today we are losing but when the penny drops, which it will by the way, i will be waiting to eat some Tesla-rites. I like Elon but i can't seem to swallow the facade, Volkswagen group, Toyota, General motors and other top manufacturers will eventually switch to fully electric and off goes the pipe dream. Chow!
The Tesla Worshippers have no common sense because they think they are buying a piece of Elon Musk's brain and his other projects such as Space x, The boring company and his Ego. They ignore factual evidence and buy blindly. If Elon releases dog poop in a bag for sale, his followers will buy, this is total madness and they will soon learn about the stock market.
Also just a quick note for those who are using Trading 212. It can be a risky endeavour to buy through 212 as orders can all of a sudden just go into pending for days or even weeks. I found this strange as many people had a similar issues. You make a profit on an investment and when you try to sell it, the order just goes into pending and by the time the order is processed, you may have lost out due to price shifts. Seems Mafia-resque to me as they seem to freeze the order until you are loss making then they process.
https://uk.trustpilot.com/review/www.teslamotors.com
Just look at the customer reviews from those who have bought a Tesla car and see what a pile of junk their gimmick of a car really is. The Tesla worshippers are ignoring the truth and going along with the lie that Tesla is special yet those who own the product say it is absolutely worthless and not even worth a quid. Tesla will soon see the end of the bubble. You are right about the possibility of a price hike due to factors such as stimulus packages being handed to inexperienced Tesla share buyers. The reality will hit them hard soon.