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Tesla is under a federal wire fraud probe for misleading investors

arstechnica.com

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Re: Tesla is under a federal wire fraud probe for misleading investors

#41

Post by est31 »

nindalf wrote: post #19
poniko wrote: post #12

Got a feeling that this August is the last chance Elon has to show off a working believable robotaxi/FSD or the hammer will fall hard on Tesla. There are too many viable options for both electic cars and personal robots out there now.

No hammer is falling. Ultimately any American government loves the idea of an American manufacturer making cars in America too much. Nothing will happen to Musk because without him, Tesla would suddenly be valued as a car manufacturer instead of a fantasy land saviour of the entire world. I don't like Musk, but his distortion field is what keeps their stock price afloat.

You are right about this, but I'm not sure this will be true in the coming 10+ years with the inflation reduction act bringing a lot of manufacturing back to the USA. Tesla is becoming one of many.

Re: Tesla is under a federal wire fraud probe for misleading investors

#42

Post by bryanlarsen »

pixelpoet wrote: post #2

And apparently stopping hiring: https://gizmodo.com/tesla-hiring-freeze-job-postings-elon-mu... I'd be dumping TSLA so hard right now if I owned any, has to be the world's most overvalued stock right?

Tesla has a P/E of 45.

Overvalued? Certainly. "World's most overvalued stock"? Hardly.

Re: Tesla is under a federal wire fraud probe for misleading investors

#44

Post by SmarsJerry »

resource_waste wrote: post #38
yoran wrote: post #8

Earlier quoted context omitted.

Seems far-fetched. No one is forcing you to buy an S&P 500 fund. And you could have sold your S&P 500 shares the day Tesla entered the index.

Do we expect everyone and their grandmas to 'diversify investments without Tesla' and 'know what date Tesla entered the index'? The government incentivizes retirement and investment. I have plenty of that thing the government hates because it doesnt produce value, it just stores value. These bad actors have me thinking more and more about these non-producing assets that continue to grow because they are scare and nec…

Short answer yes. If you invest in the S&P 500 you should know what you’re investing in.

Re: Tesla is under a federal wire fraud probe for misleading investors

#45

Post by YetAnotherNick »

ceejayoz wrote: post #17
YetAnotherNick wrote: post #14

Earlier quoted context omitted.

$2.5M revenue, $52M loss. What even is that? [1]: https://companiesmarketcap.com/trump-media-technology-group/...

A way for foreign nationals to donate billions to a US presidential campaign legally.

Why is the valuation so high then? Surely all the HFTs have enough money to short it and earn money off of it. I think a company with $0 valuation would be easier to transfer money. As only he could sell his share for >$0 for donation.

Re: Tesla is under a federal wire fraud probe for misleading investors

#46

Post by pavlov »

YetAnotherNick wrote: post #45
ceejayoz wrote: post #17

Earlier quoted context omitted.

A way for foreign nationals to donate billions to a US presidential campaign legally.

Why is the valuation so high then? Surely all the HFTs have enough money to short it and earn money off of it. I think a company with $0 valuation would be easier to transfer money. As only he could sell his share for >$0 for donation.

To short, you need to pay to borrow shares. And that’s not easy on a stock like DJT. It has a small float, and since professionals consider it overvalued, the premiums are unusually high. It also has an army of retail fans who can produce surprise spikes, meme stock style.

Hedge funds make their money with trades that are not obvious to everyone, because if they were, they’d be too crowded. “Short DJT” is definitely in that category.

Re: Tesla is under a federal wire fraud probe for misleading investors

#47

Post by ceejayoz »

YetAnotherNick wrote: post #45
ceejayoz wrote: post #17

Earlier quoted context omitted.

A way for foreign nationals to donate billions to a US presidential campaign legally.

Why is the valuation so high then? Surely all the HFTs have enough money to short it and earn money off of it. I think a company with $0 valuation would be easier to transfer money. As only he could sell his share for >$0 for donation.

> Surely all the HFTs have enough money to short it and earn money off of it.

They asked their shareholders to disable short loans (https://www.bloomberg.com/news/articles/2024-04-18/trump-med...).

Before that, everyone was already shorting to the point of 500% fees. https://www.morningstar.com/news/marketwatch/20240406227/why...

"Based on that data, to short 100 shares of Trump Media & Technology Group at the current price, it would cost between $24,895 and $29,874 a year. That means the stock would have to fall about 1.4% a day just to cover the cost of shorting it. And if the short were held for a year, the bet would still lose about $20,000 to $25,000, even if the stock price fell to $1."

Re: Tesla is under a federal wire fraud probe for misleading investors

#48

Post by infecto »

resource_waste wrote: post #39
infecto wrote: post #20

Earlier quoted context omitted.

What do you mean not sure what to think? Index funds have to follow their prescribed rules. I am also fairly certain any losses you may have experienced would be minor.

Right, there are also SEC rules. Elon broke a bunch and still got into the top 500 companies forcing everyone to buy. He broke the rules first. The indexes had to follow the rules.

TSLA is still #13 in the S&P500. Regardless of any judgements against Elon the market still is placing a value on the company.

Re: Tesla is under a federal wire fraud probe for misleading investors

#49

Post by throwaway_e66m »

ceejayoz wrote: post #17
YetAnotherNick wrote: post #14

Earlier quoted context omitted.

$2.5M revenue, $52M loss. What even is that? [1]: https://companiesmarketcap.com/trump-media-technology-group/...

A way for foreign nationals to donate billions to a US presidential campaign legally.

There are perhaps other ways, too.

Why Did the Saudi Regime and Other Gulf Tyrannies Donate Millions to the Clinton Foundation? http://theintercept.com/2016/08/25/why-did-the-saudi-regime-...

Clinton's foundation got millions from Saudis, Gates: https://www.cnn.com/2008/POLITICS/12/18/clinton.donations/

Re: Tesla is under a federal wire fraud probe for misleading investors

#50

Post by ceejayoz »

throwaway_e66m wrote: post #49
ceejayoz wrote: post #17

Earlier quoted context omitted.

A way for foreign nationals to donate billions to a US presidential campaign legally.

There are perhaps other ways, too. Why Did the Saudi Regime and Other Gulf Tyrannies Donate Millions to the Clinton Foundation? http://theintercept.com/2016/08/25/why-did-the-saudi-regime-... Clinton's foundation got millions from Saudis, Gates : https://www.cnn.com/2008/POLITICS/12/18/clinton.donations/

I have little doubt there are many ways. These are a bit harder to directly pull a billion dollars out of, though.
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