I have about 10-13k in cash that i was going to buy a sports car with, but thought about investing it in Tesla stock as they seem like how Apple started. I'm a 18 year old student and was wondering if anybody has any advice? I don't really understand how to buy stocks or when i can sell them etc...
Tesla just gained like 30% in the past few days
Now is when you sell Tesla, not buy
Why would you buy a sports car? Seems like a wast of 10 perfectly good k.
>>1111103
Nope, now is the time to buy
Tesla Model 3 (E) is gonna drop this month.
35k USD base price. Now every poorfag can afford an electric car
Extreme growth potential in the years to come
Disclaimer: I own shares of TSLA
>>1111134
tsla is way overpriced stock
no , now is time to sell
maybe it growths its revenue but never gave any income .the only way it increase its growth is because there is no not-bad competitor .but there are plenty of other brands starting with their electric cars ,for example apple and google .17.8 P/B and 6 P/S is way too much for company generating loses since the beggining of its existance
>>1111573
shit i am kinda tired ,but you get the point i hope
>>1111573
Tesla is becoming a big "cool" brand, everyday I am seeing more and more Tesla's.
It's like Apple products, where everyone thinks they're cool and original for having one, but everyone else also has one. It started off the thought that electric cars can be cool and nice, and it's certainly the most wanted electric car.
And Elon Musk is becoming very popular in a similar way to Steve Jobs
I can't see Tesla falling big anytime in the next few years
>>1111103
> DOT shoving $4 bill for self-driving cars
> Tesla at the front of self-driving cars
> Tesla at the front of electric cars
> inb4 oil goes up and everyone is on Tesla's dick
I'm seriously getting tired of these small dick losers that were at the front of "protecting the environment", but now have a lifted 4x4 with dual flowmasters used to haul their pumps. I seriously can't wait till oil comes back from the dead. All these cunt sacks will be in debt about 40k - 80k, paying $3 a gallon on a shit truck; that gets 11 miles to the gallon. Maybe mean? Fuck you. I constantly have these cucks riding my ass, being obnoxious, or just being retarded.
Reminds me of the faggots who had an 808 in their Honda; probably the same people.
> pic related
>>1111604
I feel you
>tfw you know faggots that drive lifted trucks
>>1111573
The apple car is literally just speculation. There are no mockups or prototypes, just vague shit
>>1111573
This. Tesla is a hype stock and will eventually correct.
For the record I love Tesla, have driven one and I will be buying one, but the revenue doesn't warrant the current share price.
>>1111134
You should read/watch more news about your positions then. I love the TSLA stock, but and i'm a big fan of Elon Musk....Anyway, I wouldn't expect great gains from Tesla. It will gain but not as much as you would hope. First, GM is also releasing their mid-tier car and it will steal some hype from Tesla. Also...Tesla is going to be forced to open traditional car dealerships just like every car maker. As you know, they are direct sales atm and this is going to force Tesla to change some parts of their business plan and short-mid-long term goals.
>>1111097
you should probably invest in a company that's been around for a long time and is currently down 30%
Not a company that's brand new and is currently high... you know, buy low, sell high.
I am always bearish on tesla, i mean open patents are just too big a can of worms to ignore.
>>1111595
Not to be a hipster faggot but I have really liked tesla from the start and plan on buying one but it bothers me that they because such a common person car. The reason I like them is they are fully electric and complete with small to mid sized luxury cars that I am interested in.
>investing in a company that doesn't make money
>>1112997
Woah..that's a big word. Did you know that Amazon doesn't make money for itself yet?
https://www.youtube.com/watch?v=6UhrIEUjtwI
Skip to 19:30 or watch it entirely for some sight.
Berkshire Hathaway
>>1113006
Amazing that they keep posting positive earnings reports.
Tesla had the high end electric car market to themselves and still lost money in it. How are they going to stay in business when BMW, and Mercedes enter their market?
Tesla stock price is overheated. Its going to correct itself in the future.Its a big meme company which is posting quarterly loss after another.
>>1113006
Amazon is getting BTFO by their Chinese competitor. The company is only useful asset is their name. Eventually it will fade away. Tech stocks are more risky than oil. Most don't last the 30 year game.
>>1111134
Fuck. I'd get one if I had a garage to charge it in. Shits all over BMW and Mercedes.
Investment Analyst here, I own $15,000 worth of Tesla Convertible bonds.
I have done the due diligence and can honestly tell you that you do not understand this company, and thus you shouldnt invest in it. How can you make an informed decision if you dont understand the risks?
That being said, let me explain to you some of the issues with Tesla.
1) Free Cash Flow:
its negative. Tesla doesnt make enough money by selling cars, powerwalls, etc. to cover its operating and investing (working capital) costs. As such, tesla is constantly needing to raise cash. Most analysts think that tesla will need to sell some new stock or raise some new bonds to the market just in order to stay afloat. Sadly their bond rating is already B- so it's very expensive for them to borrow money via debt (like 10% a year expensive). This basically means that it is GUARANTEED. I REPEAT GUARANTEED that tesla will have to literally PRINT NEW STOCK. Yeah, out of thin air. That means stock holders will take a HUGE haircut when this happens.
ie. why im long the convertible BONDS. I am speculating on the fact that Tesla will NOT go bankrupt, and I am pocketing that 10% yield in return. If the Model 3 pans out in 2017, I still have a conversion option with which i can change my bonds into stocks to capture some of the upside.
In this way, my downside risk is limited.
tldr; tesla is running out of cash.
AND THATS JUST THE FIRST THING YOU NEED TO KNOW.
>Let me tell you about motherfucking SALE AND LEASEBACK TRANSACTIONS MOTHERFUCKER!!!!!!
there was me
ANDS SWEET MOOLY Y MAAMLLOY
>>1111134
Too bad most people don't want one.
>>1113096
Quality post 2bh
Tesla is a meme stock
>>1113086
It does not. Alpha males don't take Tesla seriously.
It's the car for rich autist redditor neckbeards.
Real alpha males (who fuck actual bimbos) drive top tier, decked out S500/600, CL500 Mercedes and BMWs.
Tesla is a clown care.
Caring about environment and "fuel efficiency" is pleb as fuck.
There is a reason why Bentley and Rolls have a 6 liter motor. Because it shows you can afford that.
>>1113096
Are you actually an analyst? What you're saying doesn't make any sense
>1) Free Cash Flow: its negative.
This is clearly incorrect, if all future free cash flows were deemed to be negative, then the company would be drastically NPV negative and nobody would ever buy into this company. Maybe now the cash flows are negative, but investors clearly think that in the future there will be positive cash flows, and enough of them that even when they're discounted back at the appropriate rate to cover the risk of the electric car business they will provide ample yield.
>b-b-but muh inefficient market, these other investor dunno what I know!
No
>PRINT NEW STOCK. Yeah, out of thin air.
Just fyi, raising funds through the equity market does not destroy value for anyone. Heres the example we use for middle schoolers:
I have a company with 1 asset, a $20 dollar bill, I also have the only one share outstanding for the company, worth twenty bucks. If I wanted to, I could liquidate the company, my share--worth $20--would be exchanged for the twenty dollar bill.
BUT I DON"T
Instead, I "print new stock out of thin air" and sell it to your mom. She gives me $20, because thats what 1 share of my company is worth.
Now my company has 2 shares outstanding, each for $20, and my company now has TWO assets, TWO $20 bills. See? My original investment of $20 has not been changed at all. This is literally such basic finance that I'm not sure how you became an analyst.
Also, you claim to be collecting a 10% yield, but coupon payments are not entirely yield received, that depends on price paid. If price goes down, ytm goes up, I imagine prices were at a premium when you bought, thus giving you a lower ytm. But if you don't even understand firm valuation I highly doubt you understand bond pricing.
Also aren't Tesla bonds unsecured?
>>1113488
ok, FCF is not negative, Operating Cash Flow is negative. semantics.... this is freaking 4 chan my god. Take your 1.5 years of a finance undergrad and stfu.
And in regards to the printing of new stock, this is corporate finance 101....http://www.investopedia.com/walkthrough/corporate-finance/5/raising-capital/new-equity.aspx
> I dont care what you "imagine" about what I paid for the bonds... I'm telling you that they were priced to yield around 10%.
Again, take your undergraduate understanding of fucking bond pricing and shove it.
And of COURSE Tesla's bonds are unsecured. It's still less risky than the EQUITY, you freaking retard. I said that I AM SPECULATING THAT TESLA WILL NOT GO BANKRUPT.
Why?
Because of morons like OP. Despite the fact that CFO is consistently negative, and that Tesla is Hemhorragging cash, I STILL think that some retarded investors will step up to the plate with equity to finance this company, and pay off MY bonds.
>>1111097
Why do you want to buy it?
>because it is popular, and the stock is 100$ cheaper then it was in 2015
Why did the stockpice fell?
>ehm I don't know
Why will it rise?
>BECAUSE the new MODEL is COMING OUT !!!
New model came out last year, what happend with the stock?
>ehm, it fell.
Why did it fell?
>I don't know and am only 18 years old, so I have no idea about stocks
So why do you want to invest?
>because Tesla is cool, it is like Apple it has to rise.
The information you have is the information EVERYONE has, that means that the price of the stock is what people that know what you know (and certainly a lot more than you will ever know) think it should be. It is also a company that generates no profit, has no rentability, and only survives on subsidies. Think about it as this:
If someone gave you milions of dollars and you bought TESLA right now, how much would the company be worth if you sold it all.
ANSWER: nothing, you would even have to pay for its enormous debts.
Investing in a company that doesn't generate profit is only reasonable if you are CERTAIN that it will generate profit and it's stockprice is so low that if you ever bought the whole company and sold it, you would at least be around $ -,0 and not far below (as in case with Tesla).
>been following tesla stock for over a month
>check almost every day
>saw it go from 200 to 140
>'man, this is perfect time to buy'
>didn't buy
>actually never bought stocks before in my life
>have no idea how to do so
I am more than certain that tesla will become a giant in future.
>>1113673
sure, but just because a company is a good company, doesnt mean that the Market price is a good price.
PRICE MATTERS.
Logical thinking is enough here. So what do we have, a fucking hype for environment that doesn't look to slow down as the actual environment will get worse.
Every year the climate gets weirder and more fucked people will call for more action to green living.
Climate gets worse, electric cars get more popular. Every car maker and their mother sees the trend and jumps in. Now we got all these companies with way more cash and manpower able to jump in, they roll out a car within a year.
History shows that the first innovator is the first to be behind, e.g. England and their industry backed by the invention of steam engines. Tesla is not a long term deal.
>>1111604
Hate these faggots too.
I drive a miata and am well endowed. I don't doubt these big trucks are a form of compensation.
Doesn't look like OP ever came back after starting the thread. He's a faggot too.
Anyway. What do you guys think of Volkswagon right now? Price seems to have stabilized around $100-$105, awaiting news of the settlement with the EPA. I doubt it will drop below $90 worst case scenario, and will eventually recover. What's the upside potential though?
>>1112041
there is a registered patent at least so it isnt speculation .the apple car will be made
>>1113006
amazon is also overvalued
>>1113576
Funny that you never disputed the fact that I called you out on not being an actual analyst.
>ok, FCF is not negative, Operating Cash Flow is negative. semantics.
It's not semantics, theres a huge difference between the two, something an actual analyst would understand. I'm surprised you don't know this.
>And in regards to the printing of new stock, this is corporate finance 101
Investopedia also incorrectly describes Free Cash Flows, which is probably why you don't know the difference between FCF and Operating income (you don't even know that it's called operating income not operating cash flows, because we use accrual accounting). The Investopedia article uses some mental gymnastics related to marketing efforts to say shareholder value is diluted, but I can't be fucked to repeat the example I already typed out (which apparently you couldn't follow)
>I'm telling you that they were priced to yield around 10%.
Funny, not only did you not know that coupons are not expected earnings, you also don't know that ytm includes credit risk and does not count as expected earnings.
>It's still less risky than the EQUITY,
Actually it's not, literally you're exposed to the same risk, only you're gimping your returns. Shareholders receive all the upside while exposed to bankruptcy risk, and you receive a gimped version of the upside while exposed to bankruptcy risk. I doubt you understand this though.
>Because of morons like OP.
Institutions account for 70% or more of the volume in the capital markets. I'm surprised you didn't know this. How could random individual investors impact anything?
>>1113473
What a joke. Tesla isn't even in the same category as a Bentley and Rolls and a decked out top-line model of a BMW or Mercedes costs a good bit more than a Tesla Model S P85D.
Not only that, but bimbos would probably freak out more whenever they get into a Tesla with a big ass ipad console and a 0-60 time that rivals a Porsche 911 Turbo's 0-60.
>>1113473
Not use to change?
You have to think about the newer generation you shill; not talkin' Gen y.
>falling for the Tesla meme
>https://www.teslamotors.com/blog/all-our-patent-are-belong-you
How can you take Tesla stocks seriously when they don't even want to make money?
>>1114661
How can you take them seriously when they use dank memes on their corporate site.
>>1113771
>Anyway. What do you guys think of Volkswagen right now?
If they cancel their diesel-engine production, and push a new line with EV's with a marketing slogan "fucking diesel, never again", I would go for it. from all the companies this is the only one that could make EV mainstream.
>>1114719
>How can you take them seriously
I don't give a fuck about Tesla being a profitable company, but Elon is a fucking powerhouse, I would throw money at him just to see him develope something new.
>>1114957
This
>>1111103
>>1111111
>>1114295
Patents don't mean anything. Companies, like Apple for example, routinely come up with concepts that they think "might be cool in the future' and then patent it just so they have it in their pocket if it's ever actually useful.
>>1111604
actual Audi is at the front of self driving cars
>>1114478
Let's all just take a moment to laugh at this retard who thinks he knows everything yet clearly knows nothing.
Well, no, he knows a LITTLE BIT, but he's acting like he knows everything.
You've got alot of growing up to do buddy,
I suggest starting with the Statement of Cash Flows. Took me 15 seconds to google this from TSLA's 10k, and 2 minutes to clean it up in paint.
Now go take your 1.5 years of a finance major and STUDY YOUR ACCOUNTING.
