They both take criticism well it seems
Another really important unanswered question is what happens to UK investors who hold Tesla in their ISA accounts.
My understanding is that the rules are pretty complex, but depending how the company privatises, it may not qualify for being held in an ISA any more (as it may not be listed on a recognised exchange? But, perhaps it will still be a quoted share in some way).
Iād be upset to lose my TSLA holding and donāt really want to flip my shares outside of the wrapper.
Guess weāll have to see more of the detail before we know for sure.
We knew it was coming..apparently Teslaās now been subpoenaed over Elonās tweets
the NY Times are reporting that he blindsided the board with that tweet too..
Oh dear, heās not a happy guy:
I just hope that the tweets recently arenāt a sign that heās losing control, heās under an incredible amount of pressure.
I thought this would be of interest for Tesla followers.
Arkās Innovation ETF, ARKK (@Viktor is it possible to get this included?? Not currently available to UK retail as far as I can see), views Tesla as a ādeep valueā stock.
I repeat - - - - TESLA - - - - DEEP VALUE - - - - - VALUE
Regardless of the private/not private sideshow, this is the first time I have ever seen anyone refer to Tesla as a value stock. I really engage with Cathieās view of innovation as a market inefficiency, particularly with the rise of passive investing misallocating capital.
As promised, @elonmusk: an open letter against taking #Tesla private. https://t.co/dOpqUAvit4
ā Cathie Wood (@CathieDWood) August 22, 2018
Thoughts on her opinions??
I donāt think itās a value stock by any standard definition. A value stock should have a low but positive Price/Earnings ratio, It has been a growth stock, whether it will continue to be a growth stock remains to be seen. Iāve been skeptical for quite a while. I think the established car manufacturers will continue to up their game and Tesla will remain niche
Hi Dave, yes clearly it isnāt going to be a conventional definition of value, it isnāt profitable so clearly it canāt be - technically wont even have a P/E. However, her letter explains their concept of ādeep valueā with regards to future potential earnings in comparison to its current stock price.
Thought it may be an interesting discussion
Seems like deep value is their way of saying high growth, but I think itās high risk as well. Just my opinion and I donāt recommend anyone listens to me
Harry, itās a totally interesting point of view, thanks for sharing that letter. Their target hinges on some assumptions that I donāt buy into. But I am inclined to agree with the assessment that the long term value in Tesla business isnāt necessarily being recognised, in particular, their energy generation (oh haaaayy solar roof!) and the domestic and utility scale storage opportunity as the march to decarbonise energy generation continues apace.
Controversially, I do think their autonomous MaaS opportunity is being overplayed, at least over their projected timescale. Itās not yet clear if autonomous really is the way forward, from a regulatory and mass public adoption point of view. There are already players with decent credz in the market, who though in an albeit fairly limited way are delivering these services. Zipcar, car2go (Daimler), and DriveNow (initially a JV between BMW and Sixt, now wholly owned by BMW) spring to mindā¦ and thenā¦Uber/Waymo, who have the brand recognition and reach to really own autonomous MaaS.
Also, yes China is a huge market, but access unless they find a suitable partner will be a significant barrier, and thatās not even factoring the unthinkable, a two term Trump.
Ultimately one unavoidable factor in considering value, is that one of Teslaās biggest assets is also itās biggest liability, and thatās the big Elon himself.
Yes! thereās so much to say about this, and it really vibes into the wider and agonisingly complex issue of the increasing financialisation of the global economy. Maybe one for another thread thoughā¦?
Yes I agree the $7000 per share is un-probabalistic, and she is a fund manager so sheās essentially in the game or a sales pitch at every opportunity - agreed!
I think there is untapped value here to their technology. They are providing the demand, the supply, and the storage in one package. Their solar tiling is genius. Essentially their cars are literally and metaphorically their vehicle to transport their true product - solar and battery - to customers, and fly-wheels their demand.
MaaS is near impossible to gauge - but its a new business model and if it does disrupt the status-quo it is arguable that Tesla are in the best position to span the gap seamlessly as they have shown their technology is above their peers already (who else updates their carās performance with the equivalent of an app update??). Cars are an asset used 5% of the time, if they can be put to use while you are at work and actually yield you an income, and your Tesla-installed solar/battery combo provides you with cheap/free energy it converts a car into an asset class.
They still need to not go bankrupt of course!
Iāll set up a new threadā¦
Newspapers reporting Tesla will stay public after Elon got investor feedback on his plan
Hereās the blog post -
& he added an extra comment in a tweet of course -
Seeing as itās Fridayā¦
So..
& also in FT | Bloomberg | CNBC | The Telgraph
they still have a 5% stake in Tesla though. If this was a VC, thatād be pretty bad form to invest in two competitors but I guess the rules are a little bit different for sovereign wealth funds.
Softbank has done that a few times (eg the ride-sharing cos). It hedges bets by investing in companies that compete, and later encourages a merger as it becomes clear that itāll be a long slog between eg two leaders to win a market.
DCT Global seem to have done this with Revolut and Robinhood. They would have known Revolut was looking at offering stocks/shares and about Robinhood in Talks With Regulators to Offer Bank Products
Googleās another one thatās done this with Lyft and Uber.
Oh boy..
cue dramatic looking price charts