Down $14 this morning. Nervous!
Quick edit to the title to update for today's action.
Any news out that we are unaware of thus far that could explain the drop?
I can't find anything.
Tesla Motors Inc (TSLA) Overheat: Price Headed Toward $84 Says Goldman
And who said there's no such thing as a self-perpetuating prophecy...
Yep, new Goldman Sachs analysis suggesting a long term range of $58 to $113 and a near term share value estimate of $84. To tell the truth the current share price is factoring in a pretty rosy run for Tesla for the next 5-10 years, $84 per share is still above the current book value of the shares and is probably a reasonable short to medium term target if Tesla run into any strategic business issues or competition in the EV sector increases. Time will tell.
Obviously after the stock has run up so high there is going to be profit taking and a selloff at some point.
And since when do growth stocks reflect anything close to book value? Goldman's report will be a blip, stock will recover, don't worry.
Things seldom move in straight lines.
This is a catalyst for short sellers. Let them come. Q2 earnings next week will squeeze them out. Again.
Maybe the announcement by Elon Musk that he will publish his plans for Hyperloop by Aug 12 didn't help either.
Could spread the fear that the brain of Tesla Motors will lack focus in the future and that Tesla may become an orphan
Maybe not everybody has trust in the commitment of Musk towards Tesla.
Just my 2 eurocents
Also, remember this week is options expirations which always adds increased volatility.
Our stock in Tesla,(up or down) will not affect the quality of our life or lifestyle. I try not to stress out over matters which I have no control over. I'm not nervous..
I bought Apple at $40 and before it split... twice. It went to $700, now it's$425. I forgot about my stock shortly after I bought it. That's the only reason I made money, otherwise panic would have set in a long time ago. Ride the wave. This company is only getting started, lots of potential out there. Stock value is based more on your potential for growth, and Tesla has a ton.
I'm nervous, too... that I can't sell off what's left of my Apple fast enough to make sure I pick up more TSLA at this price :)
Could this decline have to do with earnings expectations coming up?
Possibly, most expect some decline in Q2, but this has been known for a while. I think @earlyretirement is right.
Bought @$116 :)
The whole bunch of GS calls is due on July 19 in the range $95-125.
The stock will go thru up and down moments like all growing companies..the most important point is the long term prospect of the company. Tesla is a $200-$300/share company within 6yrs in my opinion. This fact will be clear to everyone in about 2-3yrs. By then it will be probably too late to buy Tesla stocks for considerable gain. Oh, Goldman Sachs, don't forget they are fallible like all brokerage firms. It was not long ago Goldman Sachs and other brokerage firms were telling investors to invest in bad securities which caused the recent financial crisis and implosion of world economy. In general "analysts" have difficulty properly assessing frontier companies that are involved in cutting edge technologies. Unlike with their assessments of traditional companies, they either significantly undervalue or value them. These guys never saw the Amazons, the Intels, the Facebooks coming.......
There is no news.
A little earlier, rumors started that TSLA will join NASDAQ-100, and this was confirmed Thursday evening (July 11th) or Friday morning I'm not sure.
The significance is that ETF's, ETN's and other investment funds that follow the NASDAQ as a benchmark are required to buy up TSLA which will increase its price. By how much? No body knows beforehand, but in anticipation of price increase market-makers buy it to then sell it to these funds and profit.
As rumors started, TSLA trended from June 24th through July 15th going from $100 to $130.
TSLA was effectively added on Monday and it turned out those funds didn't need that much TSLA or had already bought their need so all those market-makers who were looking for fast money had to dump their extra on Tuesday July 16th.
So the over-reaction to the NASDAQ-100 event is correcting itself. Odds are, the stock is now under-shooting. If I had extra cash sitting around, I'd happily buy some at $110.
Nevertheless, as others said, only buy TSLA with the intention of keeping it for years.
Stock is over valued. Still nice idea to buy in if you believe in the company, shouldn't be a short term money maker if you own one of these super automobiles. There will be violent up and down swings, just don't look .
Is this mostly taking profit, or are the shorters busy again?
Does somebody know where to see the short-ratio (change)?
@mjs - also in at $116
@martin, sometimes it's hard to come up with recent numbers. I believe they only really update twice a month.
I used to rely on Yahoo, but realized this one updates much faster:
As you can see only a bi monthly update is happening on the 15th and end of month. It's probably a huge accounting nightmare (i'm not too knowledgeable about shorting/options, etc), thus the numbers only coalesce at this interval.
my opinion: GS is bitter that TM actually makes a product. The product has orders, sales, and delivery of product. TM has removed govt debt obligation. For reference, c/w other tech companies which provide a service. GS wants to buy in low, prior to Q2, which everyone wants to know unit production and sales...
just my 0.02
GS = Gutman Sucks?
The stock past 110 July 1st, and is back below it now ($109.22 as I write)
I don't think this is taking profit, or short-selling (although don't believe real-time short-ratio is available anywhere).
This is just accepting the loss and moving on for those who bought after the NASDAQ-100 rumors started.
Expect aftershocks for the rest of the week, and then calm performance afterwards.
GS = Gluttonous Shorts
My only advice is don't try and time it. Buy it and hold if you're going to.
I'm watching the stream, good news is there's lots of people buying tsla.
Every time it hits a new low, more people are buying it, and it rebounds a bit. Then it dwindles and goes down even lower, and more buyers come in.
This is a good sign I think, considering.
Also, I've noticed this stock has a lot of action on any buy/hold/sell upgrades/downgrades.
(forgive me for my estimates below, of course memory isn't 100%)
For instance, before the short squeeze, one firm said price target $73, well magically during the squeeze, it sat at this number for a bit.
Then someone else said $103. Well guess what? It peaked at $103, and went back down, then jumped again.
Then someone more recently said $130. I think we're starting to see a trend. I'm actually kind of hoping it goes down to $70 - $83 so I can buy some more.
As we in the financial industry refer to them;
Finally, I can get in on another position. Thanks, Goldman.