TSLA - Tesla

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Panasonic parting ways with Tesla's battery business. One analyst mentioned how the crypto bet pushed TSLA over it's intrinsic value.

Panasonic Corp sold its stake in electric car maker Tesla Inc for about 400 billion yen ($3.61 billion) in the year ended March, a spokesperson for the Japanese company said on Friday.

Panasonic bought 1.4 million Tesla shares at $21.15 each in 2010 for about $30 million. That stake was worth $730 million at the end of March 2020. The shares have gained almost seven fold since then.
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https://www.reuters.com/business/pa...ake-tesla-last-fiscal-year-nikkei-2021-06-24/
 
Panasonic was smart to sell. Although that shouldn't be seen as negative for TSLA. While TSLA will have panasonic help produce the 4680 batteries in giga NV, TSLA will not need battery suppliers (panasonic/LG chem/CATL) as much in a few years once 4680 production is up to full speed in Freemont/Kato Rd, Austin, Berlin, and Shanghai. It's a slow strategical move to become more vertically integrated, leading to better margins and profit. 4680 production is already underway, albeit in its infancy. This is a game-changer.
 
Latest notes from Wells Fargo.

Tesla Likely to Beat Q2 Consensus, but Bitcoin Risk Is Uncertain, Wells Fargo Says

• Tesla has raised prices five times since Q1, according to reports
• Tesla should also have seen strong services results, helped by used vehicle residuals
• Bitcoin remains an uncertainty, as Tesla could book an impairment of as much as $104 million in the quarter depending on the cryptocurrency's value and how the automaker may choose to account for it
• Wells Fargo rates Tesla equal weight, with price target $590
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Looks like another "beat", but price hasn't responded in the after hours. Their latest on Bitcoin:

Tesla also booked a bitcoin-related impairment of $51 million in the third quarter from its balance-sheet holdings of the cryptocurrency, which served as a negative impact to profits. This marked a second straight quarterly bitcoin-related impairment charge for Tesla. In the first quarter of 2021, Tesla's bitcoin holdings had generated a $101 million positive impact, net of impairments.
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https://finance.yahoo.com/news/tesla-earnings-q3-2021-140456709.html
 
Wow... The Tesla shorts are taking a beating today.

102521c.gif
 
If GM or F reported they'd be selling cars to Hertz, the stocks would get hammered. Rental fleet sales are considered quality sales. Somehow $4B in sales to Hertz equates to a $115B market cap increase for TSLA.
 
I know talking about TSLA in a negative connotation is akin to speaking negative about religion in some circles, but you have to take a step back sometimes.

TSLA is now going parabolic like a penny stock, up around 30% in two weeks. Much of this has to do with the ESG craze which is driving overvalued companies into further overvaluation. A break over psychological $1,000 has also killed many short sale holdouts. I'd watch this one for when the next market correction comes since it has become such a large part in the S&P 500 (top 10 holding). Actually, looking again, maybe we should just put this one on crash watch.

Like crypto currencies, perceived value is more important than intrinsic value.

tsla445r4.png
 
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Watched a TheoTrade video that talked about this rise and attributing the rise of retail playing the calls, because it's value and junk bond status aren't driving the stock price.
Meme momo moved here. $900 puts anyone?
 
bleeck said:
Watched a TheoTrade video that talked about this rise and attributing the rise of retail playing the calls, because it's value and junk bond status aren't driving the stock price.
Meme momo moved here. $900 puts anyone?
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A retrace to $900 makes a lot of sense for a few reasons. 1. That gap fill that Bullitt pointed out below, 2. an RSI cooler for a stock that has gone straight up for the last 2 weeks, and 3. a retest of the previous all time high. I never short stocks, but that one makes a lot of sense to me here.
 
Musk sold $1.1B worth of shares.

https://www.sec.gov/Archives/edgar/data/1318605/000089924321044060/xslF345X03/doc4.xml

I doubt he sold as part of a way to make taxes fair for the rich, but more for how grossly overvalued the company is. Seriously, worth more than every other auto company combined? Sometimes you need to pinch yourself. Another thing is Rivian. Here comes the competition.

Of course crypto bulls think he's doing this to buy crypto and will probably plow into every little thing this week in an effort to front run.
 
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