Tesla as an opportunity of investment

Tesla as an opportunity of investment

I belive that all people that are reading this post think that Tesla is a great Car Company, the most advanced, the most innoative and the most oriented at the future.
This is the reason for which I'm evaluating tesla as an opportunity of investment and i would like to discuss with you about this.

herkimer | May 12, 2013

The problem for some longs I know, is that their brokers have been telling them that "Tesla is all hype at this point," and have a stop at around $75. This dynamic apparently has helped a lot of shorts cover without a continuing spike in the price (and brought nice profits to many investors). It seems also to have kept the price steady through enormous volume! I suspect a dynamic such as this is actually good news. It may prevent a really dramatic short squeeze, but will keep investors interested and so provide downside support. It is a dynamic that appears to stabilize share prices short term. As long term potential becomes clearer, short term relative price stability is optimal. Hang on, longs!

Ironically the shorts and the doubters may be helping the company in ways they couldn't possibly have imagined!

RNB | May 13, 2013

Swinging to profitability also makes this company more attractive to investors on the sidelines. There might be new money buying behind this move also. Add in swing traders for more movement.

Brian H | May 13, 2013

Gah. Another 10% ($8) up today! Will it never end?

Tesla Lover | May 13, 2013

tesla: are you kidding me ?

Tesla Lover | May 13, 2013

100$, my year-end target become my week-end target :)

teg.main | May 13, 2013

As far as an investments go, I believe you should always invest in what you believe in. After seeing this car I became a believer. I ordered my car in November and also 2000 shares of stock. As of this morning I'm driving a free Tesla Model S P85.

Teslation | May 13, 2013

So how does it feel to make over $10,000.00 a day on your Tesla stock ?

teg.main | May 14, 2013

Nothing sweeter than waking up on vacation in Hawaii knowing I've got a few extra dollars to spend.
My car has put a smile on my face each time I drive it. I think now it will be just a little bigger. Going to bed now knowing the stock has gone up more than 3 bucks in after hours trading. This is fun but for me it will be a long position so to keep from going crazy got to stop checking every five minutes.

Tesla Lover | May 14, 2013

good job teg :)

baku | May 14, 2013

In 1 week time 1 share will cost approx $ 350

AcuraKidd | May 14, 2013

Anybody know why the stock fell a few dollars this afternoon?

I was about to buy at $82/share but became a bit suspicious of the sudden drop

martijn | May 14, 2013

It actually came down from 97,- this morning. That's a $15,- drop on very high volume (+30m)
Can anyone see how many stocks were sold short today?

danielccc | May 14, 2013

It came down because, you know, gravity. On the sell side a lot of people made a lot of money, and decided to cash in. On the buy side, I think the "original" shorts are all cleaned out now.

We, meaning the Tesla longs, took them to the cleaners for over a billion. Not bad at all, but that can't go on forever.

The price needs to stabilize now. That's a good thing. Tesla can't do a secondary offering till a new trading range is established.

Tesla Lover | May 15, 2013

Don't worry people, were long investors that have liquidated the positions... watching back i don't know why i haven't did the same thing... re-buying at 80 $ obviously :)

Tesla Lover | May 15, 2013

can we call all this rise "bubble"?

1 tesla stock can value 100$, but not so fast...

Tesla Lover | May 15, 2013

Tesla Motors Announces Offerings of Common Stock and Convertible Senior Notes...

I think i will subscribe some Convertible... i'm waiting the detail.

Brian H | May 15, 2013

There's an old book around about convertibles called The Profit Taker. Makes the argument they're the best possible investment, but hard to find.

Tesla Lover | May 16, 2013

What about the possibility to open Tesla's store in franchising ?

kkiri7 | May 17, 2013

What a ride!
From a below 20 stock to 95 plus - who would have dreamed that TSLA would make some investors a million - and this soon??
I've been on Valium for weeks - to help stifle the excitement as I saw our stock behaving like an oil gusher.
Anyway, I managed to sell reasonably near the top, I think. Enough is enough - wow, what a ride!
I really risked most of my savings when I followed my heart and put all my future requirement money into Tesla, on that fateful day - just after the 4th of July weekend in 2010 (remember the "dip" to 17 something a share?. Even so, my broker told me that paying "even $10 for a concept" was insane.
Boy, was he wrong! Now he wants me to day trade, because he says that TSLA is a "day trader's dream" - i.e. he wants regular commissions.

I feel a lot calmer now that I have cashed out. My retirement is secure, and I can stop popping Valiums since I won't be continually watching the stock ticker again (I hope not, anyway....).

Thanks to everyone for their support of Tesla and the stock. May your investments keep growing.

So, enjoy the ride - in your cars and with the stock.

JZ13 | May 17, 2013

kkiri7 - why did you sell? TSLA is a horrible stock to TRADE because it is so volatile and unpredictable. However, it is an amazing stock to OWN because it's long-term prospects are through the roof. This is disruptive technology and the proof is all around us. I fear you will be missing out on an amazing run to come. What we have seen is the tip of the iceburg.

Tesla Lover | May 17, 2013

JZ13: it' true, this is a very good investment watching at the long-term, but if we look at the stock price now i'm thinking: Why so high ? why so fast ? 100 $ was reasonable at the end of 2013, or maybe at the end of the q2 if the results will be solid, but right now i think that is a little bit higher than expectations... and that can be dangerous... this is the reason why i sold half of my stocks, the profits is inside, but i've got my cash back...

Brian H | May 17, 2013

All stock purchases are based on estimates of future behaviour/profit. Are TSLA buyers' expectations unreasonable? Opinions differ, which is necessary to have a market.

JZ13 | May 17, 2013

If Tesla is going to be revolutionary in the auto industry as I and many others believe they will, then in 5 years you will not care if you bought at $100 or at $65. However, if you are waiting for a pull-back in the price and it never happens, you will be kicking yourself when you have to buy in at $150 - $200.

kkiri7 | May 17, 2013


As I mentioned, I bought TSLA during a dip (around 17+) nearly 3 years ago. So I've held it for a long time relative to its existence. I guess I helped fund Elon's dream early in the game.
I bought an enormous number of shares (for me) with some (probably irrational) emotional belief that within 10 years I would make a bundle.
Well, as old investors will tell you, you set some price and then sell, unless the market momentum is clearly up and then you can perhaps allow greed to persuade you to stay in.
In my case, when it passed 85 (my "dream" target of 5X), I was nervous, but the upward trend was still strong. I decided to place a 'sell' order in the mid 90's since I had "made" a huge amount of money in a ridiculously short time.
I am very happy and grateful that this happened.

I should add that I was burnt once in the past with another IPO which I bought for a song, but stupidly held out for a higher return and saw it crash from the 90's to around a dollar, while we "confidently" awaited its rebound - see CPST back in 2000. It was a company I worked for and a product I believed in (Paul Allen of MSFT was a major investor back then)
As they say, once bitten twice shy, and once burnt....
And don't worry, day trading is not my cuppa tea.
(It's actually hard to day trade if you are a relaxed tea drinker - you need coffee to maintain the required nervous energy...)

Good luck with your investments.

Tesla Lover | May 20, 2013

i need a little information:
what about the option for the actual shareholder ? how is the ratio ? have i got the option right also if i live in italy ? sorry for all this question but it's the first time for me that i partecipate at a capital rise...

kkiri7 | May 21, 2013

T Lover,

Feb 7th you told us you began buying shares.
Do you now want to sell options on those? (covered calls)
So, if they are exercised, you are okay with giving up your TSLA shares?

Or are you wanting to buy options?

Options trading is rather involved, so be very careful before you do so.

Good luck

Tesla Lover | May 21, 2013

kkri7: you didn't understand my question, i asked if there are the option right for actual shareholders (example 1 stock every 10) to prevent the dilution of the quote after the capital rise.

AcuraKidd | May 21, 2013

So anybody could enlighten me as to why Tesla stock is really down the last few days?

Is it mainly because Elon pushed back the SC announcement?

Vawlkus | May 21, 2013

People are selling because the stock stopped moving upwards. It'll probably stabilize where it is.

AcuraKidd | May 22, 2013

Do you think the supercharger announcement should change that?

Btw is that gonna be this week?

Tesla Lover | May 22, 2013


When in this document there is a disposition from the tesla managment means that they are selling their shares?
Because this can be a signal about the future movement of the title...

Tesla Lover | May 23, 2013

i'm not sure but i think somebody is maintaining tesla's price stable/high...

WormtownKris | May 23, 2013

(I am not a stock pro- so I'm sure the experts will correct and clarify as needed, but...)
It isn't really down. TSLA is now trading in a range, for the first time in a while. Roughly $84- $94. This is about double where it was a month ago. After any period of rapid price growth, a stock will "build a base", "consolidate", "backfill", as day traders get out, short-termers capture profits, shorts cover, etc. As the volatile holders sell, more "stable", longer-term buyers come in. (And hopefully some shorts again!!)
The longer the stock trades in this range, the more stable it will get, and the less chance you will see of a big "correction" to the downside. It is building support, and this price range will become a baseline for future growth. (Someone else good at stock charts can probably explain the support lines if you are interested.)
It might be more exciting to see it go up 10% every day. But for every day it climbs like that, the greater the chance is that it will collapse back to a lower point. It is pretty great that TSLA is settling within about 10% of its all time high, without a big drop. Be a bit patient, and the next big cycle of big news will probably bring another price jump.
This stock is like a salmon swimming upstream. Once in a while it needs to find an eddy to relax in and catch a breather!

JZ13 | May 23, 2013

@wormtownkris - great explanation!

lph | May 23, 2013


jk2014 | May 23, 2013

Would be best to see where the short interest lands before establishing a base. Shorted float was over 30m+ just three weeks ago. Takes time for it to clear out.

Wonder if there is a comparable squeeze to reference for general similarities to Tesla's situation.

Brian H | May 23, 2013

Some of the insiders have options on shares in lieu of salary, and live off the proceeds of selling a few periodically.

ian | May 23, 2013

Well said indeed WormtownKris. Love the slamon analogy!

I was thinking the same thing Brian H. I believe some of the Tesla execs have 10b5-1 plans as part of their compensation packages.

HeebieGeebie | May 24, 2013

I don’t want to, but around Q1 2014 I will likely have to take my money out of Tesla. I’m concerned that with initial warranty claims and the reduced number of environmental tax credits, tesla will be at a loss over this period, prompting the share price to lower – do I sell now or keep and stick with it and hope for the best?

Teslation | May 24, 2013

Looks like there might be a little bit of a run up in stock price up to the supercharger announcement. Then who knows what ?

Insider transactions may not be material.

Insiders sell for a variety of reasons , to lock in gains, to diversify , because their account is automatically set up to sell, etc.

If the insider is a key executive, he'll get more grants and stock options as a pay sweetener to stay with the company.

AcuraKidd | May 24, 2013

Anyone know what day the supercharger announcement is next week?

Brian H | May 24, 2013

The grants are immaterial. You're riding a rocket. It's a long fall if you jump.

Tesla Lover | May 24, 2013

tesla is surprising me every day, last week i thought at a retracement and i sold half of my stocks to take my initial investment back, now tesla is at the all time high and no one know what to do (but for the moment i'm slapping myself)...
Tesla is writing it's own history now and we can't do more than watching..

SamO | May 24, 2013

@Tesla Lover,

Stop selling. Hold for 5 years.

baku | May 27, 2013

During this week TSLA share cost will be rising! Expect to see higher than $110.

baku | May 28, 2013

So as expected by end of this week approx $110 per share. May reach $300 sometime in the summer.

Tesla Lover | May 28, 2013

Baku: You are maybe a little bit optimist :)

baku | May 28, 2013

Tesla Lover: Quite sure it will be more than $110 by end of this week, specially due to Supercharger accouncement. However not very sure about $300 in July-August.

Tesla Lover | May 28, 2013

agree with you about 110$, but until the publication of the q2 result i don't think it can breaking the 150$... buticanbewrong :)

olanmills | May 28, 2013

Well it's already up $6 today, at about $103. High has been $104 so far. So $110 is not too far off. Of course, a pull back is always possible too.