SCTY is worth less than initially valued. But I thought TSLAs purchase price was locked in. So essential they're paying for a company that's worth $400mm less than they thought.
Just bought my first batch at 200.99. Always thought it is vastly overvalued. Probably still so since the lack of profits although I love my s and ordered a 3. I do believe its the future and if Elon can carry out half his ambitions, it could rise over the years.
Timing the market is usually a wasted effort. That said it is a good strategy to buy on dip when you plan to acqauire a good stock for long term investment purpose. Like many said TSLA is stock you buy if you believe the company will be one of the biggest auto/tech/energy company on the planet by 2025 and beyond.
Yes, TSLA got a discount. But there is a chance the SCTY shareholders will expect a higher price and potentially sue to get it.
A few years ago when another company was undervalued by 100 mm, the shareholders sued to get a higher price. So this may mean TSLA would have to pay more and raise more.
I'm waiting for $100. I expect it to happen when the M3 delay is announced the middle of next year, followed by bad press due inadequate expansion of infrastructure for delivery and service (not to mention rivets still on back-order).
I'm not an expert by even the most basic benchmarks, but everyone seems to think TSLA is not a conventional stock with conventional trends...... there are too many of us out there who think that the company is on the verge of exponential growth and a market game-changer and will ignore current financials and bet on future earnings......
I last bought at ~$170 and sold at $260. I think Buying at 170-200 and playing the long game seems reasonable.
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Classic shorts manipulation.
It just means that the short covering after Q3 numbers release will be that much higher.
Except it worked in TSLA's favor
☺
SCTY is worth less than initially valued. But I thought TSLAs purchase price was locked in. So essential they're paying for a company that's worth $400mm less than they thought.
I think you've got it backward. Tesla got a discount of $400M
http://finance.yahoo.com/news/solarcity-advisor-lazard
A few years ago when another company was undervalued by 100 mm, the shareholders sued to get a higher price. So this may mean TSLA would have to pay more and raise more.
I doubt it will go much below $150.
I'm not an expert by even the most basic benchmarks, but everyone seems to think TSLA is not a conventional stock with conventional trends...... there are too many of us out there who think that the company is on the verge of exponential growth and a market game-changer and will ignore current financials and bet on future earnings......
I last bought at ~$170 and sold at $260. I think Buying at 170-200 and playing the long game seems reasonable.
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