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Tesla shares tank after U.S. discounts doubled on key models

reuters.com

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Re: Tesla shares tank after U.S. discounts doubled on key models

#81

Post by lotsofpulp »

gorgoiler wrote: post #64

The notion of “share price” is something I haven’t ever really understood. As I understand it, if four people are queueing up to buy stock A for [$10, $9, $8, $7] and four other people are in line to sell for [$10, $11, $12, $13] then the people at the front match up and swap one unit of stock for $10, and the stock exchange lists A as being last valued at $10. Stock B’s order books have four buyers at [$10, $1, $1,…

> I want this problem to be symmetric in such a way that A and B truly do have the same value

That is why you also have to look at volume.

Re: Tesla shares tank after U.S. discounts doubled on key models

#82

Post by rozenmd »

gorgoiler wrote: post #64

The notion of “share price” is something I haven’t ever really understood. As I understand it, if four people are queueing up to buy stock A for [$10, $9, $8, $7] and four other people are in line to sell for [$10, $11, $12, $13] then the people at the front match up and swap one unit of stock for $10, and the stock exchange lists A as being last valued at $10. Stock B’s order books have four buyers at [$10, $1, $1,…

In the short term, the exchanges tell us how popular a share is, based on hype, trades, etc.

In the long term, over several years, the stock price vaguely follows the value of a company (depending on the exchange - back in Australia you could discover "sure things" a year before the rest of the market was paying attention)

Re: Tesla shares tank after U.S. discounts doubled on key models

#83

Post by chii »

karmasimida wrote: post #57

Model 3 is overpriced As a tech worker myself I don’t want to support him at this moment either. I don’t like him for what is doing with Twitter drama.

> I don’t like him for what is doing with Twitter drama.

i doubt boycotting the car would change his behaviour.

Re: Tesla shares tank after U.S. discounts doubled on key models

#84

Post by hhmc »

gorgoiler wrote: post #64

The notion of “share price” is something I haven’t ever really understood. As I understand it, if four people are queueing up to buy stock A for [$10, $9, $8, $7] and four other people are in line to sell for [$10, $11, $12, $13] then the people at the front match up and swap one unit of stock for $10, and the stock exchange lists A as being last valued at $10. Stock B’s order books have four buyers at [$10, $1, $1,…

There’s a few things wrong with this:

1. For anything remotely liquid, the order book won’t look like this for various reasons. 2. Except at very high frequency time scales there are more robust measures of price that are typically used: e.g. VWAP over some interval (this would be ~$10 in your example), or the clearing price of the closing auction, etc

Re: Tesla shares tank after U.S. discounts doubled on key models

#85

Post by akmarinov »

Ekaros wrote: post #74
faeriechangling wrote: post #60

Earlier quoted context omitted.

I don't think he takes his work seriously enough. He is too busy being a dilettante when it seems like he has the talent to focus on one business and od it well. It almost feels like Tesla Motors can't be trusted as a company fundamentally just because Musk will get bored of running it.

Also looking at history and how things are going at Twitter. There might be real worry of him doing some weird pivot and then rolling it back again. Causing loss of money and trust.

Like announcing he’s taking the company private and then backing out? Something like that?

Re: Tesla shares tank after U.S. discounts doubled on key models

#86

Post by parineum »

velmu wrote: post #14
rlt wrote: post #11

I don’t understand why Tesla needs to rush deliveries at the end of every quarter/year. If they need to provide incentives to meet the expectations they’ve set then the market should realize that and price it in, exactly like this, so what’s the point?

It drives the price of most important product of Tesla, which is the TSLA stock.

Just like every publicly traded company.

Re: Tesla shares tank after U.S. discounts doubled on key models

#87

Post by akmarinov »

bfung wrote: post #54
moomin wrote: post #3

So wait, does this mean Tesla are finally making cars faster than they can sell them?

No - The discounts are happening because of the Inflation Reduction Act that take effect in 2023. The IRA would give a $3500 tax credit for purchasing an EV, like Tesla Model Y. It takes about ~6 months for people who order a Tesla to get it delivered. For people who ordered in June, they want the IRA tax credit so many considered cancelling or delaying taking delivery until 2023. This Tesla incentive is to make thos…

They’re also doing discounts in China, though

Re: Tesla shares tank after U.S. discounts doubled on key models

#88

Post by halflings »

gorgoiler wrote: post #64

The notion of “share price” is something I haven’t ever really understood. As I understand it, if four people are queueing up to buy stock A for [$10, $9, $8, $7] and four other people are in line to sell for [$10, $11, $12, $13] then the people at the front match up and swap one unit of stock for $10, and the stock exchange lists A as being last valued at $10. Stock B’s order books have four buyers at [$10, $1, $1,…

The scenario you gave is very unlikely for stocks with large trading volume like TSLA. The spread is nowhere near that wide, and if it was market makers would make a profit out of that.

Re: Tesla shares tank after U.S. discounts doubled on key models

#89

Post by stockerta »

samwillis wrote: post #59

I just fined the Tesla share price incredible hard to justify, I know they are a growing company with big ambitions but the numbers just don't work. Tesla: - Market cap: $392.78 billion - Q3 units sold: 343,000 VW Group: - Market cap: $70.98 billion - Q3 units sold: 2,181,300 Obviously they are slightly different companies, Tesla sell solar and battery storage products. And VW Group have brands that sell to a part of…

It never made sense. Its a hype train that will collide with reality one day.

Re: Tesla shares tank after U.S. discounts doubled on key models

#90

Post by parineum »

bmitc wrote: post #72
mlindner wrote: post #51

Earlier quoted context omitted.

No not really. Tesla massively leads in EV deliveries still. None of the other EV manufacturers have really reached high volume manufacturing yet.

Several Chinese companies build more. And ICE and hybrid car makers like Hyundai and Kia that are now making EVs left and right make a lot of other cars. So it's a little weird to directly compare just a subset of their business. Hyundai and Kia deliver dozens of different models to dozens of different geographic markets. They absolutely have high volume manufacturing, and there is no reason why they will suddenly st…

>They absolutely have high volume manufacturing, and there is no reason why they will suddenly struggle with producing high volumes of EVs.

The fact that they are struggling to satisfy the demand for their electric vehicles right now is a pretty good reason to believe that.

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