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.... making almost $3B in profit. edit: in perpective - they owned about 0.55% of Tesla. Selling their share nets Panasonic a windfall thats worth about 10% of
by codeulike 5y ago
.... making almost $3B in profit.
edit: in perpective - they owned about 0.55% of Tesla. Selling their share nets Panasonic a windfall thats worth about 10% of their own $27.7B market cap.
- avelis 5y agoYeah "dumping" a winning trade isn't dumping. It's taking profits to move onto other investments.
- EGreg 5y agoWhy not? It’s still dumping. Saying that someone is only dumping if they lose, makes it too narrow. Dumping lowere the price, the bigger the dump the lower the price. Selling slowly can be called gradually unloading.
- toomuchtodo 5y ago"Panasonic realized exceptional gains on Tesla investment, continues successful partnership." Edit: Money made is money made. Lots of wealthy folks who exited investments before they were done running.
- toast0 5y agoDumping is half of pump and dump. Which if you do it right is making a profit. (I don't think this trade is pump and dump, just arguing usage with a commonly used term)
- lmilcin 5y agoDumping a winning trade is still dumping. It means you think you have won as much as there was to be won and you now have better uses for the money. This suggest you believe the stock is no longer as wortwhile as some alternative.
- codeulike 5y agoWhen Amazon sell you a printer or a book or a laptop, are they dumping it?
- ecommerceguy 5y agoA seller could certainly dump unmoved inventory on any marketplace.
- bonyt 5y agoIf they're selling me their entire inventory of one particular item, and do not intend to purchase more of it - maybe?
- saalweachter 5y agoYes? If Amazon thought the items in its warehouse were appreciating, I fully believe they'd decline to sell at a lower price.
- codeulike 5y agoSo selling = dumping? Edit: ok so dumping=selling the whole lot I guess that makes sense. I think this post explained it better https://news.ycombinator.com/item?id=27633163 https://news.ycombinator.com/item?id=27633163
- lmilcin 5y agoNo it is not. Stop trolling or go learn financial slang. It is not hard, you can google it. I worked on an exchange and currently with trading systems for one of the largest banks in the world.
- saalweachter 5y agoI mean, yeah, but at the same time, stocks are different from inventory because they (can) appreciate in value. Inventory in a store depreciates over time. There are two and a half reasons to sell a stock: because you need the cash, or because you think the stock has stopped appreciating and will depreciate going forward. Once a stock has become a depreciating asset it's really no different than the bedroom set that's been sitting in the corner of the showroom for too long, and before too long they'll be happy to take 50% or 40% or less of what they were originally asking just to get it off their hands, even if they end up selling at a nominal loss at the end. So I'd argue that a stock being "dumped" really is no different than a printer being sold, but that that doesn't look any better for the stock than the negative term would suggest.
- rank0 5y ago“Dumping” is kind of a provocative term, but when you cash out an investment that usually means you no longer expect the asset to continue appreciating. (Or at least that you expect a better return elsewhere) Nobody would cash out a position if you expected further gains.
- dnautics 5y agoMany reasons to dump assets expecting further asset price appreciation: cost to maintain inventory no longer worthwhile, pivot, asset manager quits with no replacement, further gains expected but beta too high, conflict of interest, regulatory burden, etc...
- foobarbazetc 5y agoWhy would you completely exit a winning trade that you have more insight into than most people since you’re the sole supplier of the primary component in the thing if you thought it was going to have a higher ROI than other investments? … you wouldn’t.
- _wldu 5y agoThey see the writing on the wall. Big Auto is going to dominate electric vehicles. Take the Ford F-150 as one example. https://www.ford.com/trucks/f150/f150-lightning/2022/ https://www.ford.com/trucks/f150/f150-lightning/2022/
- NicoJuicy 5y agoI don't think big cars are representative outside the US. Eg. In Europe, you would have a lot of problems with parking it.
- dewey 5y agoIt's not about the size of the car.
- Jtsummers 5y agoGP's "Big Auto" isn't about large vehicles, but about the larger and more established auto industry (Ford, VW, etc.). The F-150 just happens to be a particularly notable and recent example of an electric vehicle that seems to be particularly competently done (versus earlier efforts) out of one of those Big Auto companies. A sign that they may have finally learned how to target that side of the market.
- GhostVII 5y agoUnless you think investing in yourself is better than investing in other companies.
- spfzero 5y ago
- karmakaze 5y agoYep the title is clickbaity, 'exiting their position' would be more apt as the reason isn't known to be a negative outlook.
- deleted 5y ago[deleted]