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And I think a lot of us would be investors if their market cap were ~8 billion rather than ~50 billion. For a number of people who care about the electrificatio
by xkjkls 8y ago
And I think a lot of us would be investors if their market cap were ~8 billion rather than ~50 billion. For a number of people who care about the electrification of vehicles, watching Elon angrily bite a short sellers who are skeptical really depresses us.
Most of Tesla's wounds are self inflicted. They made an egregious decision to purchase Solar City and subsume all of it's debt, despite neither company being cash flow positive. They seem to lack concentration in what is the most important part of their business: creating a production line for electric vehicles; throwing up a smoke screen of distractions for other things that might work in the future (self driving cars, trucks).
They also haven't given any realistic plans and have repeatedly exaggerated what they can accomplish.
Sure, the car business is brutal to enter into, which is why there hasn't been a new car company decades, but there is also shooting yourself in the foot.
- shashanoid 8y agoHe is asking you to buy Options. Call option means you're bullish on $TSLA - A call option is an agreement that gives an investor the right, but not the obligation, to buy a stock. Unlike stocks, options have an expiry date 7 somewhat lose their value with time ( time decay ). A $275 call option/contract for instance which expires in 2020 means if $TSLA stock is trading above $275 in 2020, you'll make ton of money. It gives you the right to buy $TSLA at $275 in 2020 but you can sell your contract (1 contract represents 100 shares ) before the expiration date. If you don't do anything, the option/contract will expire wothless which means you'll lose the price you initially paid to buy that contract or you'll lose if the stock is trading below $275 or whichever strike price you bought it for. For simple call option, losses are constrained (the premium you paid to buy the contract ) but profits are unlimited. Options work exactly how insurance works, you can do the opposite as well and ofcourse there are several strategies on options as well. Beaware, this is dangerous.
- prklmn 8y agoThe cost of the option you point to isn’t negligible. It’s trading at $69 as of today, meaning your break even point is $344, not $275.