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> Tesla stock is down in after-hours trading, but that doesn't mean much. If the stock is down significantly at the close tomorrow, the market didn't like this.

> Tesla stock is down in after-hours trading, but that doesn't mean much. If the stock is down significantly at the close tomorrow, the market didn't like this. Well... there's all kinds of information asymmetry in investing. Musk generally has a clearer picture of the company's future than investors, such that signalling theory postulates that when he decides to issue equity, this may be interpreted as him viewing the equity is overvalued. i.e. selling an overvalued stock makes sense. Particularly, selling an overvalued stock prior to bad news coming out that would negatively affect the valuation, such as a growing rate of cancelled orders. Just making something up here. As such, knowing nothing about the firm, and only the timing of the equity issue, most investors are usually inclined to interpret an equity issue as the stock being overvalued somewhat, and adjust accordingly. So the market not liking this may just be a function of general principles of finance, and have little to do with the specifics of the company itself.

Chronic51 10y ago
> and have little to do with the specifics of the company itself. You are kidding me. The Elon Musk fanboyism is strong on HN. Of course it has everything to do with his company. He presented Tesla as a valuable company and created expectations. Those expectations are being corrected with a price drop. Had he not inflated Teslas ability, this would have never happened.
Chronic51 10y ago
> and have little to do with the specifics of the company itself. You are kidding me. The Elon Musk fanboyism is strong on HN. Of course it has everything to do with his company. He presented Tesla as a valuable company and created expectations. Those expectations are being corrected with a price drop. Had he not inflated Teslas ability, this would have never happened.
stp-ip 10y ago
As far as the information goes. Musk is selling his stock to buy his stock options and cover the resulting taxes. The documents stated, that even after he sold part of his stake for 0.6B he would have more shares than before.

Chronic51 10y ago

> and have little to do with the specifics of the company itself. You are kidding me. The Elon Musk fanboyism is strong on HN. Of course it has everything to do with his company. He presented Tesla as a valuable company and created expectations. Those expectations are being corrected with a price drop. Had he not inflated Teslas ability, this would have never happened.

Chronic51 10y ago

stp-ip 10y ago

As far as the information goes. Musk is selling his stock to buy his stock options and cover the resulting taxes. The documents stated, that even after he sold part of his stake for 0.6B he would have more shares than before.