Morgan Stanley Slashes Worst-Case Price for Tesla to $10 • Hacker News Board

Re: Morgan Stanley Slashes Worst-Case Price for Tesla to $10

#31

Post by Despegar » Wed, May 22, 2019, 3:50 AM UTC

Animats wrote: post #21

See this article on the cash flow of Uber, Tesla, Lyft, and Snap.[1] Those guys have far worse startup cash flow than Google, Amazon, Apple, or Facebook. Far, far worse. It's hard to think of any business in financial history with that much cash burn up front. Some of those guys are going to have a Chapter 11 bankruptcy haircut. They'll probably all survive, but the investors, not so much. Tesla has to raise a lot of…

Tencent's equity will get wiped out as well, and I doubt they're going to invest more into it after that.

Also I'm pretty sure CFIUS will block it anyway.

Re: Morgan Stanley Slashes Worst-Case Price for Tesla to $10

#32

Post by boh » Wed, May 22, 2019, 3:50 AM UTC

zaroth wrote: post #17

Even Jim Cramer (famous Tesla bear that he is) took issue with this “analysis”. > Setting a price target of $10 on a $200 stock "really is insane," the "Mad Money" host said. "How about $8? How about $12? Ten basically says, 'I want to get talked about. Let's talk about me.'" > "If he had done $47 would we have talked about him? No, but 10. Ten is right in your face," Cramer said on "Squawk on the Street." "I questio…

Jim Cramer also suggested people should buy as much Lyft stock as they can (https://www.thestreet.com/video/get-lyft-when-ipos-jim-crame...).

With his long history of bad calls, there's no reason to give any more credit than he deserves.

Re: Morgan Stanley Slashes Worst-Case Price for Tesla to $10

#33

Post by kevingadd » Wed, May 22, 2019, 3:51 AM UTC

yumraj wrote: post #25

Animats wrote: post #21

See this article on the cash flow of Uber, Tesla, Lyft, and Snap.[1] Those guys have far worse startup cash flow than Google, Amazon, Apple, or Facebook. Far, far worse. It's hard to think of any business in financial history with that much cash burn up front. Some of those guys are going to have a Chapter 11 bankruptcy haircut. They'll probably all survive, but the investors, not so much. Tesla has to raise a lot of…

> When the dust settles, Tesla may be a Chinese company. Tencent is the latest big investor. I'm sure, and hope, that the US regulators will block that from happening.

(IANAL) How exactly would US regulators just take Tencent's stock away? Would the US government buy it from them? Is there precedent for just telling them the stock is useless paper and would that not discourage foreign investment in US companies?

Re: Morgan Stanley Slashes Worst-Case Price for Tesla to $10

#34

Post by dd36 » Wed, May 22, 2019, 3:54 AM UTC

zaroth wrote: post #17

Even Jim Cramer (famous Tesla bear that he is) took issue with this “analysis”. > Setting a price target of $10 on a $200 stock "really is insane," the "Mad Money" host said. "How about $8? How about $12? Ten basically says, 'I want to get talked about. Let's talk about me.'" > "If he had done $47 would we have talked about him? No, but 10. Ten is right in your face," Cramer said on "Squawk on the Street." "I questio…

"However, Jonas kept his main price target for the stock at $230 and also has a bull-case forecast of $391"

Re: Morgan Stanley Slashes Worst-Case Price for Tesla to $10

#35

Post by godzillabrennus » Wed, May 22, 2019, 3:57 AM UTC

tuna-piano wrote: post #22

Animats wrote: post #21

See this article on the cash flow of Uber, Tesla, Lyft, and Snap.[1] Those guys have far worse startup cash flow than Google, Amazon, Apple, or Facebook. Far, far worse. It's hard to think of any business in financial history with that much cash burn up front. Some of those guys are going to have a Chapter 11 bankruptcy haircut. They'll probably all survive, but the investors, not so much. Tesla has to raise a lot of…

“When the dust settles, Tesla may be a Chinese company. Tencent is the latest big investor.” This is something people don’t understand about the trade deficit. Most people think the trade deficit means that China sends the US way more stuff than the US sends to China. That is not true. Of course China doesn’t send stuff without asking for things in return. China sends stuff and then has the right to buy pieces of Ame…

Then old white people voted to change that and Trumped the status quo.

Re: Morgan Stanley Slashes Worst-Case Price for Tesla to $10

#36

Post by idlewords » Wed, May 22, 2019, 3:58 AM UTC

nradov wrote: post #27

So what they're saying, is that depending on what happens in the future the stock price might go up or down.

Or, under very unlikely circumstances, stay the same.

Re: Morgan Stanley Slashes Worst-Case Price for Tesla to $10

#37

Post by m0zg » Wed, May 22, 2019, 4:01 AM UTC

I'd say the truly worst case would be zero, and delisting. I don't think it'll come to that, though. Tesla is basically the best thing to happen to the car industry in the last hundred years or so, it'd be a real shame if it crapped out.

Re: Morgan Stanley Slashes Worst-Case Price for Tesla to $10

#38

Post by option » Wed, May 22, 2019, 4:05 AM UTC

I remember how few years ago when TSLA

Re: Morgan Stanley Slashes Worst-Case Price for Tesla to $10

#39

Post by option_greek » Wed, May 22, 2019, 4:05 AM UTC

kevingadd wrote: post #33

yumraj wrote: post #25

Earlier quoted context omitted.

> When the dust settles, Tesla may be a Chinese company. Tencent is the latest big investor. I'm sure, and hope, that the US regulators will block that from happening.

(IANAL) How exactly would US regulators just take Tencent's stock away? Would the US government buy it from them? Is there precedent for just telling them the stock is useless paper and would that not discourage foreign investment in US companies?

They don't need to do anything till tencent doesn't hold majority stake in it. Any stock buyouts that will result in majority shareholdings will need regulatory approval (in many countries that is the case )

Re: Morgan Stanley Slashes Worst-Case Price for Tesla to $10

#40

Post by yalogin » Wed, May 22, 2019, 4:07 AM UTC

How do they define market saturation? They think all the people that will buy a Tesla already bought it? How would they get that estimate? Also none of the reason mentioned in the article warrants a 10 dollar worst case.