CNBC piece: Here’s why Bill Gates and Elon Musk are wrong about Tesla
Elon Musk Sold More Than $3.5 Billion Worth of Tesla Shares
The CEO’s sale of Tesla stock has weighed on the company’s share price, which is down more than 50% in 2022.www.wsj.com
www.investors.com
Yeah, valuation was pretty bonkers before, unless you assumed they were cornering the car market.
He ridiculed short-sellers and pumped the hell out of the stock, but at the end of the day people bought the stock at those levels.
Maybe I'm off on the vernacular, but I thought when someone was 'pumping' a stock they weren't just touting it, but actively placing bids to 'pump up the price'. So if there was evidence that Musk had borrowed money to buy stock, then sold and left people holding the bag, that would look scummy, but it seems like reality is just weighing on Tesla's stock price more than anything else when it seems overpriced by just about any metric you want to use.
One would think he is doing it on purpose to own the libs.10 Tesla Investors Lose $132.5 Billion From Musk's Twitter Fiasco
10 Tesla Investors Lose $132.5 Billion From Musk's Twitter Fiasco
Tesla investors are growing tired of Elon Musk's Twitter fiasco. And for good reason.
Tesla (TSLA) investors are growing tired of Elon Musk's Twitter fiasco. And for good reason.
The 10 largest investors in the electric-vehicle maker's stock, including ETF giants Vanguard, BlackRock (BLK) and Musk himself, lost nearly $133 billion since Twitter's board accepted Musk's buyout on April 25, says an Investor's Business Daily analysis of data from S&P Global Market Intelligence and MarketSmith.
It cost Musk the position as the richest person in the world. But he's not alone feeling the pain.
Tesla Stock Dropping Like A Rock
Tesla's value is down more than 52% since the Twitter buyout was approved on April 25, while the S&P 500 is only off 5.5%. And Tesla stock is off 29% since the deal closed on Oct. 27, much worse than the S&P 500's 6.6% gain in that time. Shares are down again Wednesday, by 3.4% to 155.38.
That's shredding a jaw-dropping amount of wealth for Tesla investors. The value of Tesla is down $339 billion from the Twitter deal's approval and $206 billion from the close.
Investors worry that Musk is so infatuated with Twitter, he's not minding Tesla.
Investors owning shares of Tesla, now down more than 50% this year, are vocally expressing displeasure. "There is no TSLA CEO today," Gary Black, managing partner of the Future Fund, which is down nearly $18 million on its Tesla stock since April, tweeted Monday, as first reported by the Wall Street Journal.
It's Not Just Costing Elon Musk
Musk is definitely suffering the most from the Tesla implosion. As the largest shareholder with 14.1% of the company, he's personally lost $47.9 billion from the time the Twitter deal closed.
But losses are spreading to Main Street, too, as the giant ETF and mutual fund companies are the next biggest owners. Vanguard, which is forecasting a recession next year, is the No. 2 largest holder of Tesla stock. It owns nearly 7% of the company. And due to that, its shareholders are down nearly $23 billion from the Twitter deal close.
What will Musk's infatuation with Twitter ultimately cost Tesla investors?
"This remains the quagmire for Musk as well as Tesla investors in what has been a period of pain for Tesla bulls in a general risk-off backdrop with the Musk's golden child stock under major pressure," said Wedbush's Dan Ives in a note to clients.
Biggest Tesla Losers Since Twitter
Losses based on value of current holdings from April 25, 2022, approval of Twitter sale
Holder Loss from Twitter deal approval (in billions) % of Tesla owned
Elon Musk $47.9 14.1%
Vanguard Group 22.9 6.7
BlackRock 18.5 5.4
State Street Global Advisors 10.7 3.1
Capital Research and Management 10.5 3.0
Geode Capital Management 5.1 1.5
T. Rowe Price 5.1 1.4
Ellison, Lawrence 4.8 1.4
FMR 3.7 1.1
Jennison Associates 3.2 0.9
10 Tesla Investors Lose $132.5 Billion From Musk's Twitter Fiasco
10 Tesla Investors Lose $132.5 Billion From Musk's Twitter Fiasco
Tesla investors are growing tired of Elon Musk's Twitter fiasco. And for good reason.
Tesla (TSLA) investors are growing tired of Elon Musk's Twitter fiasco. And for good reason.
The 10 largest investors in the electric-vehicle maker's stock, including ETF giants Vanguard, BlackRock (BLK) and Musk himself, lost nearly $133 billion since Twitter's board accepted Musk's buyout on April 25, says an Investor's Business Daily analysis of data from S&P Global Market Intelligence and MarketSmith.
It cost Musk the position as the richest person in the world. But he's not alone feeling the pain.
Tesla Stock Dropping Like A Rock
Tesla's value is down more than 52% since the Twitter buyout was approved on April 25, while the S&P 500 is only off 5.5%. And Tesla stock is off 29% since the deal closed on Oct. 27, much worse than the S&P 500's 6.6% gain in that time. Shares are down again Wednesday, by 3.4% to 155.38.
That's shredding a jaw-dropping amount of wealth for Tesla investors. The value of Tesla is down $339 billion from the Twitter deal's approval and $206 billion from the close.
Investors worry that Musk is so infatuated with Twitter, he's not minding Tesla.
Investors owning shares of Tesla, now down more than 50% this year, are vocally expressing displeasure. "There is no TSLA CEO today," Gary Black, managing partner of the Future Fund, which is down nearly $18 million on its Tesla stock since April, tweeted Monday, as first reported by the Wall Street Journal.
It's Not Just Costing Elon Musk
Musk is definitely suffering the most from the Tesla implosion. As the largest shareholder with 14.1% of the company, he's personally lost $47.9 billion from the time the Twitter deal closed.
But losses are spreading to Main Street, too, as the giant ETF and mutual fund companies are the next biggest owners. Vanguard, which is forecasting a recession next year, is the No. 2 largest holder of Tesla stock. It owns nearly 7% of the company. And due to that, its shareholders are down nearly $23 billion from the Twitter deal close.
What will Musk's infatuation with Twitter ultimately cost Tesla investors?
"This remains the quagmire for Musk as well as Tesla investors in what has been a period of pain for Tesla bulls in a general risk-off backdrop with the Musk's golden child stock under major pressure," said Wedbush's Dan Ives in a note to clients.
Biggest Tesla Losers Since Twitter
Losses based on value of current holdings from April 25, 2022, approval of Twitter sale
Holder Loss from Twitter deal approval (in billions) % of Tesla owned
Elon Musk $47.9 14.1%
Vanguard Group 22.9 6.7
BlackRock 18.5 5.4
State Street Global Advisors 10.7 3.1
Capital Research and Management 10.5 3.0
Geode Capital Management 5.1 1.5
T. Rowe Price 5.1 1.4
Ellison, Lawrence 4.8 1.4
FMR 3.7 1.1
Jennison Associates 3.2 0.9
She should stay out of this. Pretty sure this stuff happens all the time and for Warren to get involved just makes it look political.
So did Gates close his position, or is he still funding water infrastructure for all of the world with this intelligent decision?
Eh, he’s clearly redirecting resources from other companies to Twitter. He’s violating his duty of loyalty and fiduciary duties to his investors.
Is that a US Senate function? Let the regulators handle it. Or Tesla shareholders.
Yes. She’s on the Securities, Investment, and Insurance subcommittee.
Ok. I see no need for her to be butting in on how specific companies are being run and IMO it’s purely political.
I wonder if people are thinking Tesla has peaked. New entrants, problems with FSD, year-end discounting looks desperate, etc.
The new tax credit begins on the 1st. How bad are sales that they’re willing to give up $7500 a vehicle to move sales into Q4?
This would be an epic tweet by Bill Gates.
Nothing political about denying the EV credits to non-union American manufacturers…
Tesla sells luxury cars that aren’t luxurious. Their cheapest car starts $7k over the average new car purchase and $2k over Toyota’s best selling model.I bought TSLA on Friday at $123. Of course it could fall more, and if it does, I will buy more.
TSLA is way ahead of others making EVs. Its margins blow away the big car companies, who have dealer networks and suppliers dragging them down. TSLA has no need to advertise. Their charging infrastructure is much more developed and the technology in the cars is better.
If this idiot (Musk is both a genius and an idiot at the same time) doesn't screw it up in the next couple years, TSLA will be enormously successful.
Gates should cover and go long.
Elon is stopping his sales. PE at current price is 34ish. Forward PE is 20ish. Given that TSLA doesn't have the baggage of the traditional motor companies, I think TSLA will do well. Obviously, those who are risk averse should avoid, but there is money to be made off of a bunch of sellers who are basing this on politics and Musk being an idiot venturing into Twitter shit.
Ford is separating its EV business from the traditional. Smart move. I don't know all the details on how the traditional car companies deals with dealerships are structured in terms of when the manufacturers can rid themselves of the dealers or take over themselves, but the traditional structure is a huge drag. Those sleazy douchebags who walk up to you and ask "how much do you want your monthly payment to be?" are dinosaurs. Good riddance.
jalopnik.com
