Tesla Is a Cult Stock

[Wingnut]

With the first Model 3's expected to make their way into consumer driveways today, check out the specs that have Tesla (TSLA) fanboys excited. When are you picking yours up?


The company's stock has fallen the week and month after both of the last two Tesla release cycles.

The day after the first ten Model S vehicles were delivered on June 22, 2012, Tesla stock dropped almost 2%. By the following week, the stock had fallen almost 10% -- closing at precisely the same level three weeks later, a month after the first delivery.

When the Model X was delivered in September of 2015, the stock initially staggered upward a cool 0.71%. By the next week, the stock was down 8%. Three weeks later, the stock had fallen another 6 percentage points, sitting 14% lower than the day the cars met their drivers.

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The classic stock market wisdom is that investors should buy on the rumor, and sell on the news. With the release of a new vehicle, the narrative playing out in the news can tend to shift.

"I would think it is the sense that investors have a hype around the launch of the vehicle and then the narrative around the stock shifts to execution risk of production," Cowen & Co. LLC senior research analyst Jeffrey Osborne said.

https://www.thestreet.com/story/14247860/2/tesla-is-a-cult-stock-jim-cramer-says.html

[IsailedawayfromFR]

What is the average per car subsidy for a Tesla?

It is purely a car for the wealthy, and should have zero subsidy.

[truth_seeker]

What is the average per car subsidy for a Tesla?

It is purely a car for the wealthy, and should have zero subsidy.

I agree generally opposing subsidies.

However Tesla joins all other electrics and hybrids regarding subsidies, some fairly low in price.

IOW subsidies are not for high priced vehicles only.

[montanajoe]

Apple has done pretty well with that cult thingy....

[Frank Cannon]

Tesla is Enron.

[DB]

What is the average per car subsidy for a Tesla?

It is purely a car for the wealthy, and should have zero subsidy.

I believe its on the order of $7k.

[Wingnut]

Apple has done pretty well with that cult thingy....

It saw a window of opportunity.

[IsailedawayfromFR]

IOW subsidies are not for high priced vehicles only.

what is the rationale for that statement?

The tax code codifies many different disqualifications of deductions for those having higher incomes.  Why is this different?

[truth_seeker]

Tesla is Enron.

Enron was a clear case of crooked accounting. An illegal Ponzi scheme.

Tesla appears to be legal, in terms of using laws and regulations, by our brilliant political class--to incentivize vehicles with alternative energy options.

Apparently all electrics and hybrids get some form of subsidy to the buyer (up to a certain number per that particular model--200,000 I seem to recall reading). There are federal subsidies, and some states too.

Nevada incentivized Tesla to locate their super battery plant, there. Several other cities bid for that including one from ultra conservative Texas.

Electrics and gas-electric hybrids are predicated on rising hydrocarbon prices, manmade globull warming, cleaner air etc.

Fuel prices are staying low, due in part at least to fracking. Globull warming is viewed with greater skepticism over time.

My point is Elon Musk is merely using the system OUR LAWMAKERS have laid at his feet, to achieve their social & economic manipulation of society.

Defense-aerospace firms have used government to enrich themselves, legally. Likewise Tesla, unless somebody knows something else.

Some investors no longer require profits. Only the prospect of future profits. Amazon failed to make profits for years. Now it is  the single most valuable company in the entire world.

Tesla and Uber are based on future profits.