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Tesla is under a federal wire fraud probe for misleading investors
- pixelpoet 2y agoAnd apparently stopping hiring: https://gizmodo.com/tesla-hiring-freeze-job-postings-elon-musk-layoffs-1851464758 https://gizmodo.com/tesla-hiring-freeze-job-postings-elon-mu... I'd be dumping TSLA so hard right now if I owned any, has to be the world's most overvalued stock right?
- pavlov 2y ago> "the world's most overvalued stock" There's always Trump Media & Technology Group Corp, ticker DJT. $6.5 billion market cap. Annual revenue $4 million (that's an "m"). It's a social media company that doesn't reveal any usage numbers or other KPIs. The company's auditor was just revealed by the SEC to be a complete scam with 100% fraudulent audits. So why would anyone buy this? Well, it's 65% owned by a presidential candidate in the current election. The same candidate is threatened by massive legal fees. So if you're Saudi Arabia, you can easily afford to spend a billion dollars on technically worthless DJT stock, and it goes straight to the pockets of the politician who has a very good chance of winning the 2024 presidential election. And there's nothing illegal about this, apparently. (For prior art, see that time when Qatar paid $1B for a distressed New York property owned by this same president's son-in-law.)
- generic92034 2y agoThe best democracy money can buy. ;)
- pavlov 2y agoPersonally I think that award belongs to the United Kingdom. They don’t even need a constitution. To ensure the moneyed classes of Britain are well looked after, they have both a king who is a billionaire and a prime minister whose net worth is a more modest $500 million.
- pjc50 2y agoThe King is irrelevant and the PM got his money by marrying an heiress. No, it's true that money is a problem, but those are the wrong places to look. Try https://www.transparency.org.uk/can-you-buy-lordship https://www.transparency.org.uk/can-you-buy-lordship or https://news.sky.com/story/michelle-mone-who-is-she-and-what-is-the-ppe-controversy-swirling-around-the-tory-peer-12762756 https://news.sky.com/story/michelle-mone-who-is-she-and-what...
- Hamuko 2y agoWait, DJT un-crashed?
- dboreham 2y ago[flagged]
- nindalf 2y agoThis is factually untrue, easily disprovable by checking the chart over 3 months - https://www.cnbc.com/quotes/DJT https://www.cnbc.com/quotes/DJT. What are you going to do now? Claim that going from $66 to $22 isn't a crash?
- dboreham 2y agoHey I'm no Trump fan but you're doing the same thing. Looking at the whole chart it clearly never crashed. There was a blip up for like one day that you conveniently picked as your high point and a day or so of driving price but overall given its a meme stock the price generally stayed about the same. Crash I'd define personally as 90% price collapse with no bounce back. What I see in the chart I'd call a significant short term decline after being overbought.
- ceejayoz 2y agoYour definition would exclude basically every crash other than https://en.wikipedia.org/wiki/Wall_Street_Crash_of_1929 https://en.wikipedia.org/wiki/Wall_Street_Crash_of_1929, which entailed a “89.2% loss for the index”. Even then, it came back eventually. When the "flash crash" happened in 2010 it was a 9% drop. https://en.wikipedia.org/wiki/2010_flash_crash https://en.wikipedia.org/wiki/2010_flash_crash $22 is half the average for the months preceding the drop, and 1/3 the peak, with a sustained drop for more than two weeks straight. That’d be called a crash by pretty much anyone.
- bilekas 2y ago65% is owned by 1 person so lets ignore that percentage for the purposes of describing a 'crash' as that 1 person wouldn't crash it themselves intentionally. Now you're left with 35% for retail and institutional investors. $66 to $22 is just under a 35% drop. Smells like a crash to me.
- YetAnotherNick 2y ago$2.5M revenue, $52M loss. What even is that? [1]: https://companiesmarketcap.com/trump-media-technology-group/earnings/ https://companiesmarketcap.com/trump-media-technology-group/...
- ceejayoz 2y agoA way for foreign nationals to donate billions to a US presidential campaign legally.
- rubyfan 2y agoThe thing stinks to be sure but you need more evidence to make that claim.
- ceejayoz 2y agoPresidential candidates are allowed to use unlimited personal funds in their campaign. Trump owns billions of $DJT stock. His lockup period ends well before the election. The share price can be manipulated at will given enough money, the Saudis have plenty of that, and there’s already a good track record of them using it this way; a $2B investment in Trump’s son-in-law “despite objections from the fund’s advisers about the merits of the deal”, as an example. https://www.nytimes.com/2022/04/10/us/jared-kushner-saudi-investment-fund.html https://www.nytimes.com/2022/04/10/us/jared-kushner-saudi-in...
- bilekas 2y agoDonald Trump's hotels and other businesses accepted more than $7.8m (£6.1m) from foreign governments during his presidency. This is not news.
- deleted 2y ago[deleted]
- YetAnotherNick 2y agoWhy is the valuation so high then? Surely all the HFTs have enough money to short it and earn money off of it. I think a company with $0 valuation would be easier to transfer money. As only he could sell his share for >$0 for donation.
- bilekas 2y agoIt's okay though, they asked congress to investigate the 'market manipulation' suggesting that short sellers were tanking the stock.. All while the majority shareholder makes false and misleading public claims about its fiscal stability to retail investors. And actively pushing users to retain control over brokers of their shares. https://www.marketwatch.com/story/trump-medias-fight-turns-to-legal-short-selling-as-djt-shares-rise-again-28cd82ee https://www.marketwatch.com/story/trump-medias-fight-turns-t... And they tout the free market. Bulls and Bears for thee, but not for me.
- rsynnott 2y agoThe Trump stock is almost the platonic ideal of a meme stock; just a stock ticker for people to gamble on, without the inconvenience of an actual company attached to it. Traditional meme stocks (GameStop, Bed Bath and Beyond, AMC, arguably Tesla) have a large, poorly-run company attached, which is really extraneous to the stock's core purpose, that of ensnaring day-traders. I mean, it's _possible_ the Trump one is driven by the bribery angle, but common things being common it may just be a very compelling meme stock, sharing as it does the name of a meme president.
- agumonkey 2y agoI always assumed that their inertia (being able to get most milestones from model s to x etc) + charger networks + massive infrastructure and potential applied R&D was the reason for the valuation. But since the Twitter-Cybertruck era it seems things are cracking in too many places.
- bryanlarsen 2y agoTesla has a P/E of 45. Overvalued? Certainly. "World's most overvalued stock"? Hardly.
- resource_waste 2y agoWhen Tesla entered the fortune 500 and my SPY stock bought it, I was enraged that someone could swindle their way into auto-buys. Genuinely not sure what to think of the stock market/index funds since that happened. I'd like to get some sort of compensation that is GREATER than my cost.
- bingbingbing777 2y agoHow can you prove that damages were done to you?
- resource_waste 2y agoThat is the solution to moral dilemmas? Require the (small) victim to provide sufficient evidence to beat the (big power) abuser. I mean, the idealistic founding fathers might have thought this is how the world will work, but look at reality: Where do you see little guys actually suing the big guys? The damage needs to be so tremendous that you can afford a lawyer to spend years on it. So anything less than 10 million dollars goes to the big power. The law says "No damages were done". Morally, damages were done to the masses and this billionaire got richer. Its an organization issue. The damages were done and EVERYONE knows.
- yoran 2y agoSeems far-fetched. No one is forcing you to buy an S&P 500 fund. And you could have sold your S&P 500 shares the day Tesla entered the index.
- resource_waste 2y agoDo we expect everyone and their grandmas to 'diversify investments without Tesla' and 'know what date Tesla entered the index'? The government incentivizes retirement and investment. I have plenty of that thing the government hates because it doesnt produce value, it just stores value. These bad actors have me thinking more and more about these non-producing assets that continue to grow because they are scare and necessary.
- linsomniac 2y agoNot to mention, you know, the consumers who paid for FSD, starting back in 2016, and still don't even have that feature enabled on their cars.
- agumonkey 2y agocybertruck owners are too busy gathering their fingers and sewing their leg wounds for now. ps: https://gizmodo.com/tesla-cybertruck-door-leaves-a-gash-in-owners-leg-1851463705 https://gizmodo.com/tesla-cybertruck-door-leaves-a-gash-in-o... (warning, fleshwound embeded images )
- moogly 2y agoPretty insane that there hasn't been a class action law suit yet.
- fastball 2y agoIsn't it in public beta now?
- poniko 2y agoGot a feeling that this August is the last chance Elon has to show off a working believable robotaxi/FSD or the hammer will fall hard on Tesla. There are too many viable options for both electic cars and personal robots out there now.
- nindalf 2y agoNo hammer is falling. Ultimately any American government loves the idea of an American manufacturer making cars in America too much. Nothing will happen to Musk because without him, Tesla would suddenly be valued as a car manufacturer instead of a fantasy land saviour of the entire world. I don't like Musk, but his distortion field is what keeps their stock price afloat.
- pixelpoet 2y agoThe RDF didn't seem to help Twitter much.
- poniko 2y agoMight be, but sales was slowing down in both EU and ASIA in April when the other manufactures had upticks, seems like the Tesla brand is loosing its appeal. A bad q2 and a FSD no-show will probably spook even the most bullish investors.
- est31 2y agoYou are right about this, but I'm not sure this will be true in the coming 10+ years with the inflation reduction act bringing a lot of manufacturing back to the USA. Tesla is becoming one of many.
- xqcgrek2 2y ago[flagged]
- deleted 2y ago[deleted]
- danaris 2y agoWhile this is marked as a dupe, there doesn't appear to be any link to the earlier discussion—it appears to be here: https://news.ycombinator.com/item?id=40298486 https://news.ycombinator.com/item?id=40298486