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The craziness is that this company is indeed still performing really well in terms of revenue and growth. And yet investors are selling their shares. Presumably
by jillesvangurp 4y ago
The craziness is that this company is indeed still performing really well in terms of revenue and growth. And yet investors are selling their shares. Presumably at a loss. And probably it's a really good investment opportunity at this point. I actually bought some mor shares a few weeks ago. Short term that's obviously not working out for me but I have good hopes longer term.
It's still a good market to be producing batteries and electrical vehicles in. Tesla is still a market leader in that market. They've got production capacity, supply chains, etc. working just fine with more capacity coming online. It's still growth market. Nothing has changed really other than people's perceptions. And those can change again.
It does raise the question: why are people selling shares at a loss? Who are these people? Why are they panicking so much that they'll take the loss? It's not very rational behavior. Which suggests an answer that maybe there are some people with a financial interest in this manipulating the markets.
Either way, I expect Elon Musk might be buying some shares back at a discount just to make a point. There has been talk of buying back shares by Tesla in any case so there is plenty of support for that among share holders. At the current prices of the shares, that might actually not be the worst way to spend a few billion. And slightly evil of Elon Musk as well. So, entirely in character. Sell shares to buy Twitter, cause chaos there, watch Tesla's stock price collapse, buy back some Tesla shares at a discount, stock price goes back up again and Tesla continues making money and growing like nothing happened. Win win. Maybe Twitter survives all this. Maybe it won't. But does it matter if he comes out making a profit?