Is Tesla (tsla) In Trouble?

Discussion in 'Investment Charts' started by longtermbull, Jul 26, 2017.

  1. gowiththeflow

    gowiththeflow Senior Investor

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    So, the market thinks that the Tesla story has changed and the company is now on track to profitability in the next quarter? Personally, I think that some investors are looking for any reason to buy the stock but until the finances are in better shape I will be avoiding. Interesting to see that Elon Musk is apologising for his past attitude - have major shareholders put the squeeze on the controversial entrepreneur?

    https://www.cnbc.com/video/2018/08/02/tesla-earnings-call-elon-musk-apologizes.html
    https://www.cnbc.com/2018/08/02/wall-street-believes-this-could-be-teslas-inflection-point.html
     
  2. longtermbull

    longtermbull Administrator Staff Member

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    Big day for Tesla today - is this really the turning point for the company or another false dawn. Personally, like some others, I am not convinced. Might we see a fund raising if this share price rise does stick at least in the short term?
     
  3. Chartman

    Chartman Senior Investor

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    It is hard not to come to the conclusion that Tesla is overbought at this moment in time and a fallback to support at $320 is likely. In the short term, the next resistance level is around $360. A break above $360 could see the price pushing towards $380 in the short term while a fall below $320 could again lead to a sub-$300 share price. A traders dream.....if you call it right!
     
  4. fireopal

    fireopal Senior Investor

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    good play today & might be kicking myself for selling >> EM tweeted about taking company private @ $420 & now have T1 trading halt
     
  5. Chartman

    Chartman Senior Investor

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    Very interesting developments - would be perfect for EM, he would not have to answer to analysts. If he is not being completely honest with this unofficial announcement then he will get in serious trouble with the SEC. Just when you thought things had calmed down!
     
  6. longtermbull

    longtermbull Administrator Staff Member

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    Does it make sense to take Tesla private and away from prying eyes and short term targets? Yes it does

    Should Elon Musk be allowed to make such price sensitive comments on his own Twitter account ahead of any announcement from the company? No

    Will he be in serious trouble if his buyout plans are not firmed up and offered to shareholders? Yes, he could face legal action for possible share price manipulation
     
  7. gowiththeflow

    gowiththeflow Senior Investor

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    The market reaction says everything - shorters back in control. I have never seen a takeover where the possible bidder is encouraging people not to sell and just go "off market" with shares in a private company.
     
  8. longtermbull

    longtermbull Administrator Staff Member

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    And the shorters are back in the ascendency! I think we are getting to the point where the market is actually discounting anything Elon Musk says and waiting for the figures to speak for themselves. Some fall from over $380 and a big gap between the share price and the mooted takeover price of $420!

    Interesting that the company has confirmed talks, but talk is cheap and there are few ways to raise in excess of $70b to takeover a non-profit making company with challenging cashflow to say the least.
     
  9. gowiththeflow

    gowiththeflow Senior Investor

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    It has been confirmed that Elon Musk and Tesla are the subject of at least two legal actions surrounding the recently announced potential takeover of the company. I also note that the shares have fallen back significantly from the $420 indicative takeout price. Incidentally, are there no rules to stop connected parties from making highly price sensitive announcements via their own communication channels? Surely the first inkling of a potential takeover should come from the company?
     
  10. longtermbull

    longtermbull Administrator Staff Member

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    Legal actions and the US go hand in hand so it is no surprise to see court action at the first opportunity. It will be interesting to see if a judge can get Tesla to release all paperwork regarding the proposed offer from Elon Musk. I would love to see the inner workings.
     
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