Given up gains in 30mins
I was surprised by this…
What is the reason? Why are there so many sales after good results?
Detached from fundamentals.
Surely it’s more sellers than buyers?
Fundamentally and in the best case scenario the price should be in $400-600 range if you try to make DCF models. Sooner or later common sense will prevail and the prices will get lower. In any case it’s an outstanding company and achievement for Elon.
With interest rates at 0% and with the FED not even thinking about thinking about raising them, the concept of terminal value comes into play. This is a major explainer of the recent explosion in stock prices and the stock price targets by analysts.
I missed this “train without brakes” unfortunately. Whoever bought it in March and sold it now made an excellent capital gain. Those who are still holding are just putting themselves at increasing risk, because it looks like a bubble.
As ever, interesting thoughts from Chamath:
Just think when everyone on FT who has multiple 100s of percent gains in Tesla decides to sell and the increase in FX fees FT will receive.
I hope the alpha account reduces or does away with this fee
Stock got tested last week and came back very strong today! Knocked the door down. Keep holding the stock all this is going to $2000.
I don’t understand why they’re not listing on one of the Chinese stock exchanges, particularly the one year old “Chinese NASDAQ” that keeps getting a lot of publicity.
Do we think American greed/worship of unrestrained capitalism is going to be enough to ensure Chinese companies can keep trading on American exchanges even if relations between the two countries get worse?
It was declared today that Chinese, and indeed any foreign, companies will be delisted at the end of 2021 if they do not meet American accounting standards.
Is America well known for accounting standards? Enron and 2008 suggest not
Both of those really come down to the way we record derivative liabilities and yes that has not been fixed at all. However, Chinese audit standards are exceptionally poor and have led to a large number of high profile frauds. It is not fair that these companies are able to list on exchanges and play by different rules to their American counterparts.
Back then, no.
But plenty of regulations and legislation have been introduced since then.
Well, as long as they accept to follow USA accounting standards it should be okay then.
Do USA and European companies follow similar standards? Are they automatically recognised as being “as good” by the financial authorities of the USA?
It is not so much the exact specification but rather the rigour of the examination. Chinese companies can basically pay an EY branded Chinese firm to audit them without ever really being properly scrutinised. Audits fail in the US as well but at a much lower rate.
How will the split work for the fraction share ? Is it going to be a proportion ? So for every .25 of a share will we get one share ?