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Tesla 5-1 Stock Split

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Re: Tesla 5-1 Stock Split

#71

Post by riffraff »

nine_k wrote: post #58
webXL wrote: post #49

Earlier quoted context omitted.

So there is an alternative?

Buy gold ;) I wonder why TSLA is compared to dot-com stocks. Tesla produce real, tangible things, with sale and resale value; same applies to their factories. They are in the "real sector", while dot-coms were (and are) in the "virtual" services sector propped by ad revenue. TSLA can be a bubble, but it must be a different kind of it.

WebVan[0] and Pets.com[1], two of the most well known busts of the dot-com era, did not use ads.

Ad-based-internet became a big thing many years later, I believe.

(I do agree that TSLA is different, anyway.)

[0] https://en.wikipedia.org/wiki/Webvan [1] https://en.wikipedia.org/wiki/Pets.com

Re: Tesla 5-1 Stock Split

#72

Post by dpedu »

sfblah wrote: post #12

Does anybody else share my sort of shell-shock WRT Tesla? I'm one of those who thinks its stock (and probably all the big tech names) are in a bubble. But whenever I say that I get shouted down, downvoted, told I'm an idiot, etc. I'm hoping this comment is vanilla enough to be safe... just curious if others have had the same experience. To be clear: I'm not interested in debating the value of Tesla. I'm curious if ot…

Tesla was undervalued. Stocks aren't priced what they are because of how well the company is doing today, but how well investors believe it will be doing tomorrow.

Think about it - the world has been screaming for green this and that and electric vehicles are one of the biggest pieces of a such a world. Tesla and no other company is synonymous with this kind of technology. When you think electric cars, "Tesla" is the first brand in your head, in anyone's head, without fail. That is an extremely powerful position to be in.

Re: Tesla 5-1 Stock Split

#73

Post by riffraff »

dripton wrote: post #33

Meh. Total non-event. Once upon a time I hated splits because they made record-keeping more complicated, but the online brokers do a good job of tracking basis across splits now. Once upon a time there was a real reason to do splits to enable easier purchases, but the online brokers allow fractional shares now. So, just not excited either way about splits anymore.

Matt Levine made me notice that there's still an effect of stock splits on making options more accessible i.e. there are brokers for fractional shares, but not options on fractional shares/fractional options.

I am pretty sure this is irrelevant, but it's interesting.

Re: Tesla 5-1 Stock Split

#74

Post by mac01021 »

nine_k wrote: post #64
o-__-o wrote: post #18

Earlier quoted context omitted.

If they can successfully enable fully automated self driving cars, then I think the value is entirely justified. See FaceBook. Disclaimer: I bought Tesla calls today and now assume I’m rich so your opinion may differ

I bet on self-driving trucks instead. They can go like 95% of the way via highways driverless, only accepting a driver to drive it through a city to a loading ramp, and maybe to a pump midway a very long trip. Drivers will not disappear soon but will provide local service. Having a driverless car which can navigate through a city would be great, but it is a much more complicated problem to solve.

Is there a good asset to buy to bet on those?

Re: Tesla 5-1 Stock Split

#75

Post by wilg »

riffraff wrote: post #71
nine_k wrote: post #58

Earlier quoted context omitted.

Buy gold ;) I wonder why TSLA is compared to dot-com stocks. Tesla produce real, tangible things, with sale and resale value; same applies to their factories. They are in the "real sector", while dot-coms were (and are) in the "virtual" services sector propped by ad revenue. TSLA can be a bubble, but it must be a different kind of it.

WebVan[0] and Pets.com[1], two of the most well known busts of the dot-com era, did not use ads. Ad-based-internet became a big thing many years later, I believe. (I do agree that TSLA is different, anyway.) [0] https://en.wikipedia.org/wiki/Webvan [1] https://en.wikipedia.org/wiki/Pets.com

Strange that you would say Pets.com didn't use ads given in your link there is a section about their famous sock puppet mascot with the following quote:

> Pets.com hired the San Francisco office of TBWA\Chiat\Day to design its advertising campaign.

Also here's a collection of Pets.com TV ads: https://www.youtube.com/watch?v=sICSyC9u5iI

And Webvan did ads too: https://www.bizjournals.com/sacramento/stories/2001/03/05/da...

Re: Tesla 5-1 Stock Split

#76

Post by omgwtfbyobbq »

sfblah wrote: post #12

Does anybody else share my sort of shell-shock WRT Tesla? I'm one of those who thinks its stock (and probably all the big tech names) are in a bubble. But whenever I say that I get shouted down, downvoted, told I'm an idiot, etc. I'm hoping this comment is vanilla enough to be safe... just curious if others have had the same experience. To be clear: I'm not interested in debating the value of Tesla. I'm curious if ot…

Yes and no. My sense is the market will be speculative no matter what. In the past, that speculation was on the negative side, and now it's on the positive side.

I can see Tesla rivaling Toyota in revenue in the next five to ten years given how slowly they and others have moved on EVs. But I could also see Tesla running into trouble if they screw up their expansion or if another large manufacturers bets the farm on EVs.

Re: Tesla 5-1 Stock Split

#77

Post by njarboe »

ogre_codes wrote: post #65
gzu wrote: post #14

Speaking of splits, I love how Apple’s stock split justification is: “We want Apple stock to be more accessible to a broader base of investors.” https://investor.apple.com/faq/default.aspx Yet it’s one of the top stocks held on Robinhood (#3 at 700,000 users) https://www.robintrack.net/symbol/AAPL

Apple is in the DOW and the DOW is a stupidly weighted index where share price affects what percentage of the index that company holds. Right now a 1% increase in Apple pushes the DOW up 10 times more than a 1% increase in Cocoa Cola. Companies in the DOW tend to have share prices below $500/ share and most are under $200 and the DOW won't add companies with high stock values as a result (Apple was added only after t…

Very few people invest in the basket of companies that make up the Dow Jones. Its use as an index of how the stock market is behaving is really a historical artifact at this point. One ETF in the top one hundred [1] ETFs is based on the Dow Jones Industrial Average and that one is ranked 43rd. Joining the S&P 500 is a big deal, on the other hand, as the three biggest ETFs are S&P 500 funds.

[1]https://etfdb.com/compare/market-cap/

Re: Tesla 5-1 Stock Split

#78

Post by pinky1417 »

tejohnso wrote: post #36
sfblah wrote: post #12

Does anybody else share my sort of shell-shock WRT Tesla? I'm one of those who thinks its stock (and probably all the big tech names) are in a bubble. But whenever I say that I get shouted down, downvoted, told I'm an idiot, etc. I'm hoping this comment is vanilla enough to be safe... just curious if others have had the same experience. To be clear: I'm not interested in debating the value of Tesla. I'm curious if ot…

You're not alone. I wouldn't buy it at these levels (or even close to), but I wouldn't short it either. (paraphrasing C.Munger)

I appreciate seeing Charlie Munger show up on HN. He may not be a technophile but his business and life principals are applicable everywhere.

I share Munger's opinion, not just on Tesla. I don't short companies because, as John Maynard Keynes said, “the markets can remain irrational longer than you can remain solvent.” And if I were to short companies, I'd be more likely to choose a Kodak anyway because at least Tesla has a crazy genius CEO who could conceivably grow Tesla to a point where everyone says Tesla's August 2020 would seem reasonable.

Re: Tesla 5-1 Stock Split

#79

Post by GuB-42 »

sfblah wrote: post #12

Does anybody else share my sort of shell-shock WRT Tesla? I'm one of those who thinks its stock (and probably all the big tech names) are in a bubble. But whenever I say that I get shouted down, downvoted, told I'm an idiot, etc. I'm hoping this comment is vanilla enough to be safe... just curious if others have had the same experience. To be clear: I'm not interested in debating the value of Tesla. I'm curious if ot…

I don't think that Tesla is a bubble, more like gambling.

Tesla right now clearly isn't worth $1T, but it is definitely on something big. Electric cars look well set to be the future, and so are the batteries that go with them. And currently, Tesla is a leader in both these fields. Furthermore, Tesla is creating an ecosystem not unlike Apple with its cars, it includes their supercharger network and all their software. And we all see how successful Apple is.

So yeah, huge potential. However, it is all speculation. Maybe traditional car manufacturers will wake up and offer decent electric cars. Maybe their ecosystem will fail to capture their market. If that happens, even if Tesla stays profitable, its value will crash. That's because Tesla will stop being a bet on the future and become just another mid-rank car manufacturer.

Personally, I am not into gambling, so I won't buy and I won't short.

Re: Tesla 5-1 Stock Split

#80

Post by sfblah »

est31 wrote: post #68
nine_k wrote: post #58

Earlier quoted context omitted.

Buy gold ;) I wonder why TSLA is compared to dot-com stocks. Tesla produce real, tangible things, with sale and resale value; same applies to their factories. They are in the "real sector", while dot-coms were (and are) in the "virtual" services sector propped by ad revenue. TSLA can be a bubble, but it must be a different kind of it.

Tesla produces real things, yes, any they have already driven change in the car industry. But even if Tesla displaces all other carmakers, which isn't likely, there is a total limit to the car market. Another reason to tell why Tesla's stock is in bubbly conditions is the timing. Why is it soaring up right now? Is there some event that makes it more likely that people buy cars? No. The current events actually point t…

Thanks for the video. Worth the watch.
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