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?
As it stands now...All trading carries risk, but it should be interesting to see how TSLA reacts when US markets re-open as the stock has been hovering below its 200-day MA for the last two days.
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.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%)
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.
How much would you spend on a car?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.
How much would you spend on a car?
... 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.
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.
Model Y | Tesla
Model Y is a fully electric, mid-size SUV with unparalleled protection and versatile cargo space.www.tesla.com
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.How much would you spend on a car?
So how much would you be willing to spend on a used car?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.
Nothing at the moment, but an upper limit would likely be $50k for a 3yr old EV.So how much would you be willing to spend on a used car?
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.What makes you think that the cost savings of EV’s won’t recoup the difference in price between an EV and Ice?
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.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.
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.
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.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.
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.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.
Hahaha the plot thickens.Elon Musk says Twitter deal is 'on hold'
Twitter shares are taking a hit after Elon Musk said in a tweet that his $44 billion acquisition is temporarily on hold.www.foxbusiness.com Elon Musk tweets that $44 billion agreement to buy Twitter has hit a snag over number of fake accounts
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.Billionaire Elon Musk fired off yet another tweet Tuesday potentially sabotaging his $44 billion bid to buy Twitter. His scorched-earth campaign may also be sabotaging Twitter itself.
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 speculationsWhatever 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.
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