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Tesla’s stock (TSLA) takes a beating amidst confusion over Twitter acquisition – is Elon selling?

Tesla’s stock (TSLA) is currently taking a beating and losing over $150 billion in value amidst the confusion around Elon Musk’s Twitter(TWTR) acquisition. The main question on investors’ minds is: is Elon Musk selling Tesla stocks?
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electrek.co

Tesla's stock (TSLA) takes a beating amidst confusion over Twitter acquisition – is Elon selling?

Tesla’s stock (TSLA) is currently taking a beating and losing over $150 billion in value amidst the confusion around Elon Musk’s Twitter(TWTR) acquisition. The main question on investors’ minds is: is Elon Musk selling Tesla stocks? After a few weeks of back and forth, Twitter’s board of...
electrek.co electrek.co
 
Trader X said:
As it stands now...
Market Summary
Tesla Inc
877.51 USD−4.00 (0.45%)today
Closed: 28 Apr, 7:59 pm GMT-4
After hours 854.50 −23.01 (2.62%)
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The after hours decline of over 2% seems to have been a part of the broader market selling stemming from disappointing earnings reports after the bell.

With the news of Elon Musk selling breaking so late in the day in the US, the real reaction might only kick-in once pre-market trading starts up in a few hours.
 
Elon Musk Offloads $4 Billion of Tesla Shares, Pledges No More Sales
  • Tesla co-founder tweets he doesn’t plan to sell any more stock
  • Musk has to cover a $21 billion equity portion of transaction

Elon Musk sold about $4 billion worth of Tesla Inc. shares after announcing a blockbuster $44 billion deal to buy Twitter Inc.

Tesla’s chief executive officer offloaded about 4.4 million shares on April 26 and April 27, filings showed late Thursday. Wall Street analysts and investors in the electric carmaker suspected that Musk may need to sell some stock to cover the $21 billion equity portion of the transaction that he’s personally guaranteed.

Musk tweeted shortly after the filings were made public that he has “no further Tesla sales planned after today.”

Musk and Twitter reached an agreement on Monday for the world’s richest man to buy the social media company. His quest raises several “key man risk” issues for Tesla, where Musk has been CEO since 2008 and has long been the largest shareholder. Meanwhile, confirmation of his sales may unnerve shareholders, scores of whom are retail investors.

Tesla shares fell 12% on April 26, the most since September 2020, and were little changed in the following two sessions, with the stock closing Thursday at $877.51. Another $12.5 billion of Musk’s deal for Twitter is secured by his Tesla stake.

“It’s a brutal cycle for Tesla investors to navigate and casts a shadow on the name with Musk selling more stock,” said Dan Ives of Wedbush. “The Twitter deal is becoming an albatross for Tesla’s stock and this pours gasoline on the raging fire.”

Twitter shares closed Thursday at $49.11, short of the $54.20 that investors will receive for each share they own under the company’s deal with Musk.
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Trader X said:
I did and the features don't compare as expected since the Model Y shown is the entry level model. It's a moot point anyway as I would never spend $70k+ on a depreciating liability like a car, EV or ICE.
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How much would you spend on a car?
 
Value Collector said:
How much would you spend on a car?
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I doubt that you will get an answer. I'm still waiting for him to list the difference in features of the two models he mentioned.

Trader X said:
... the features don't compare as expected since the Model Y shown is the entry level model. It's a moot point anyway as I would never spend $70k+ on a depreciating liability like a car, EV or ICE.
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JohnDe said:
What features are you talking about? The only things I can see that your Turbo CX-5 has that the Tesla doesn't is a turbo engine and a transmission. Plus it is outdated before you even buy it, Japan has canceled Turbo engine production for the CX-5.

www.tesla.com

Model Y | Tesla

Model Y is a fully electric, mid-size SUV with unparalleled protection and versatile cargo space.
www.tesla.com www.tesla.com
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Value Collector said:
How much would you spend on a car?
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A: That depends on an assessment of future depreciation, make and model of a used car. I don't buy new, that's for those who like instant gratification and don't mind the financial impact of buying a rapidly depreciating liability. EV depreciation dynamics will of course change as sales volumes increase and new entrants flood the market over the next few years. At the moment I am not in the market for a used EV since the cost savings would never recover the price difference with ICE cars for my use case and future depreciation is unclear. If I was in the market for a used EV, it would be an SUV similar to the Model Y but only after it's rate of depreciation is known. Likely then to be 2-3 years old but prior to warranty expiry. However, I expect the depreciation of EV sedans to follow the same trajectory as the ICE sedans so something like a used Model 3 could be more attractive in terms of depreciation.
 
Trader X said:
A: That depends on an assessment of future depreciation, make and model of a used car. I don't buy new, that's for those who like instant gratification and don't mind the financial impact of buying a rapidly depreciating liability. EV depreciation dynamics will of course change as sales volumes increase and new entrants flood the market over the next few years. At the moment I am not in the market for a used EV since the cost savings would never recover the price difference with ICE cars for my use case and future depreciation is unclear. If I was in the market for a used EV, it would be an SUV similar to the Model Y but only after it's rate of depreciation is known. Likely then to be 2-3 years old but prior to warranty expiry. However, I expect the depreciation of EV sedans to follow the same trajectory as the ICE sedans so something like a used Model 3 could be more attractive in terms of depreciation.
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So how much would you be willing to spend on a used car?

What makes you think that the cost savings of EV’s won’t recoup the difference in price between an EV and Ice?


I used to be the same, I never bought new cars either, In fact before I purchased the Tesla I had only ever bought 1 car which was a second hand VT commodore that I kept for 17 years and it was 5 years old when I bought it.

But, eventually you have to enjoy the finer things, I mean you don’t want to be waiting for your old age before sex, same with spending.
 
Value Collector said:
So how much would you be willing to spend on a used car?
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Nothing at the moment, but an upper limit would likely be $50k for a 3yr old EV.

Value Collector said:
What makes you think that the cost savings of EV’s won’t recoup the difference in price between an EV and Ice?
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Is that a serious question with used Model 3s advertising in the range of $80K to over $100k on Carsales? Given how little driving I actually do these days, the operating cost savings of an EV would never come close to cost difference recovery.

Value Collector said:
But, eventually you have to enjoy the finer things, I mean you don’t want to be waiting for your old age before sex, same with spending.
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LOL, we all have different perceptions of what constitutes the finer things in life. For me that's vacationing in exotic locations and maybe even some real sex on the beach. Somehow, sitting in a shiny new Tesla cruising on bitumen watching the trucks roll by or stuck in traffic just does not compare.
 
Last edited:
"How much would you spend on a car?"

It's actually a pretty interesting question. The most money I've spent on any car ever was $29,000 for an E-Type Jaguar back in the 80s. I sold it for exactly the same amount and am still kicking myself I did that.

In recent years the most I've spent is $25,000 for a 2003 land Rover defender 90 Xtreme. That was back early 2020 and I have been offered 50k for it since. Mrs decision and she was absolutely right about that.

As far as EVs, the economics don't add up for me, don't I may at some stage do something completely ridiculous like put an electric motor in a 62 Volkswagen Beetle that'll pull 6 seconds on the quarter mile... Just to see people's expressions LMAO
 
Trader X said:
Is that a serious question with used Model 3s advertising in the range of $80K to over $100k on Carsales? Given how little driving I actually do these days, the operating cost savings of an EV would never come close to cost recovery.
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Yes, used Tesla prices are crazy. There are owners asking $80,000 for a M3 standard range, when you can order a new one for Drive Away $68,883. What's driving up the used price is buyers not willing to wait the current 9 - 12 months.

Tesla can't keep up with demand (the Hybrid RAV4 has the same wait period), but people need a car and more are not willing to buy an ICE.
 
Trader X said:
Nothing at the moment, but an upper limit would likely be $50k for a 3yr old EV.


Is that a serious question with used Model 3s advertising in the range of $80K to over $100k on Carsales? Given how little driving I actually do these days, the operating cost savings of an EV would never come close to cost difference recovery.


LOL, we all have different perceptions of what constitutes the finer things in life. For me that's vacationing in exotic locations and maybe even some real sex on the beach. Somehow, sitting in a shiny new Tesla cruising on bitumen watching the trucks roll by or stuck in traffic just does not compare.
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Well the oldest Australian model 3’s turn 3 years old in September, so there is probably not enough data to make assumptions about what their used vehicle prices will be, especially because of the shortage, but if you are saying that a 3 year old model 3 sells for the same price it did new 3 years ago, then they are performing better than ice cars that’s for sure.

Well, I definitely enjoy vacationing as well I generally spend 2-3 months of the year over seas, did Florida and Hawaii this year already, will be in UK in Oct, and back to the USA in December, then back to the USA for Berkshire meeting may 2023, will try and squeeze NZ in there some where when it opens too, and a few trips around australia. but there is limits to the amount of time I want to spend away from my cat, and if I do have to sit traffic during the other 9 months of the year, then sitting in a self driving Tesla is definately better than my old commodore hahaha.

When it comes to an EV recouping it’s costs, if I keep my Tesla as long as I kept my old commodore, it would save me about $70,000 in fuel and maintenance, even more as inflation pushes up the price of fuel and maintenance over time.

Not to mention saving days worth of time at petrol stations.
 
JohnDe said:
Tesla can't keep up with demand (the Hybrid RAV4 has the same wait period), but people need a car and more are not willing to buy an ICE.
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True across the board for EV makers in general. I note that BYD powers on in China and launching the Atto 3 for sub-$50k in Australia. Used Model 3 prices will adjust eventually with the depreciation likely quite savage. The hefty price one must pay for early adoption and the novelty of owning an EV so early in the product cycle.
 
Trader X said:
Whatever Musk's true motives were in offering $54.20/share for Twitter, I doubt taking a multi-billion dollar loss factored into his calculations and projections.

View attachment 141899
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well there used to be a tactic deployed by some corporate raiders of buying a stake 'discovering anomalies ' and then buying the rest at a big discount ( or from the administrators ) , now whether Musk stumbled on this strategy after buying the stake , or had it planned before hand is up to personal speculations

maybe Musk needed to 'break ' Twitter to rebuild it ( especially if he needs an employee purge )
 

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