tag:blogger.com,1999:blog-8152901575140311047.post2134079242656481494..comments2024-03-28T12:49:46.624-04:00Comments on Musings on Markets: The Privatization of Tesla: Stray Tweet or Game Changing NewsAswath Damodaranhttp://www.blogger.com/profile/12021594649672906878noreply@blogger.comBlogger12125tag:blogger.com,1999:blog-8152901575140311047.post-30964851834954864442018-08-16T18:17:01.403-04:002018-08-16T18:17:01.403-04:00Hi Prof.
I am not sure if it was a stray tweet or...Hi Prof.<br /><br />I am not sure if it was a stray tweet or if he was serious, but the consequence has been that Musk was again able to shift the narrative away from earnings, cash flows, etc. <br /><br />We'll just talk about the privatization over the next 6 months to a year and nobody would bother about next quarter results!<br /><br />Cheers<br />ShashankAnonymoushttps://www.blogger.com/profile/07738080801180444670noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-9271808906139112482018-08-13T00:17:04.736-04:002018-08-13T00:17:04.736-04:00Muhammad,
I did mean less than 2000 investors. Pub...Muhammad,<br />I did mean less than 2000 investors. Public companies can have more than 2000 investors.Aswath Damodaranhttps://www.blogger.com/profile/12021594649672906878noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-83857720384023514632018-08-12T16:15:46.075-04:002018-08-12T16:15:46.075-04:00This post really cuts through the noise. Discussio...This post really cuts through the noise. Discussions of Tesla's finances almost never make an effort to be emotionally detached.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-84046939704802009672018-08-12T14:01:52.256-04:002018-08-12T14:01:52.256-04:00Tesla could be valued as a oil field that produces...Tesla could be valued as a oil field that produces 2Mbpd of BOE. It powers cars today, homes tomorrow and cities later. If you look at it this way $70B is not an over valuation. Vikas Deolalikerhttps://www.blogger.com/profile/17311295540681032486noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-40142436870904412732018-08-12T02:49:07.792-04:002018-08-12T02:49:07.792-04:00Thank you, Professor, for sharing once again your ...Thank you, Professor, for sharing once again your wisdom on Tesla. <br />As you wrote, "Musk is convinced, rightly or wrongly, that short sellers in Tesla are conspiring to bring not just the stock price, but the entire company, down." <br />Indeed this seems to be the key: Tesla "is a growing company and it needs new capital to continue operating." Or maybe, Tesla "is a dilution machine and needs a high share price to continue to finance its operations with new capital." Of course, in theory, a company can finance $1000 issuing 10 shares at $100 or 100 shares at $10, but we all know it is not that simple. The show must go on for the company to remain afloat: if some large backer runs for the exits, then it's game over. Musk may be obsessed with short sellers, but he is not stupid and perfectly understands this.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-25701636316931399652018-08-11T04:48:55.277-04:002018-08-11T04:48:55.277-04:00Great article with deep insight. One small typo :&...Great article with deep insight. One small typo :"since the SEC restricts private companies to having less than 2000".<br />I believe you mean "more than 2000"Mohammed Arifhttps://www.blogger.com/profile/08414122857995200282noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-57792608118390677952018-08-11T02:25:50.175-04:002018-08-11T02:25:50.175-04:00Greetings Professor Damodaran,
Just a note of tha...Greetings Professor Damodaran,<br /><br />Just a note of thanks for your efforts.<br /><br />Each of your posts is a great learning opportunity, which I take advantage of.<br /><br />All the best,<br /><br />JeffJeff Snidernoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-72723969063824616942018-08-10T21:02:02.735-04:002018-08-10T21:02:02.735-04:00Hi Professor - as always, I appreciate the great w...Hi Professor - as always, I appreciate the great write-up. One note: I believe it would be difficult to presume that the commenters on the prior post you allude to are representative of the actual shorts on Tesla. I would doubt that the investors who oversee enough money to move the needle on the company's short interest would be the ones complaining in these comments that a 50% price decline isn't enough. The "shorts" that Elon seems to combat on Twitter are likely a de minimus portion of the bets against the company. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-74805754860663509562018-08-10T17:57:29.298-04:002018-08-10T17:57:29.298-04:00Tesla makes the best products in the world. I will...Tesla makes the best products in the world. I will put all my money in it. I wish I could put money in SpaceX and The Boring company as well. Elon Musk is a genius!Anonymoushttps://www.blogger.com/profile/00930192893388653706noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-3156440030835723352018-08-10T16:56:24.352-04:002018-08-10T16:56:24.352-04:00Great write-up Professor.
You are exactly right ...Great write-up Professor. <br /><br />You are exactly right about the emotional underpinnings of TSLA investors(both long and short). Interestingly enough, I actually really like the company and the mission (even if Musk can be obnoxious from time to time), but I just can't reconcile that with the underlying realities. The company's fundamentals are atrocious. Call me a reluctant short, I suppose. MPVnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-20384927724454596472018-08-10T13:01:08.696-04:002018-08-10T13:01:08.696-04:00Hey Professor, solid breakdown and attempted unbia...Hey Professor, solid breakdown and attempted unbiased view of Tesla. I'm rooting for the company but I'm not willing to put money behind it at the current valuation.Brian Kehmhttps://frugalfortunes.com/noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-26556438487137377592018-08-10T11:26:41.464-04:002018-08-10T11:26:41.464-04:00Excellent summary of the situation and appreciate ...Excellent summary of the situation and appreciate the balanced viewAnonymousnoreply@blogger.com