He said he’d sell stock. He didn’t say he’d pay taxes.
Stop assuming this ass clown has a plan. He’s a complete fucking jackass on the biggest heater in world history. “Funding secured at 420!”
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The bull case is they will all sell batteries, or something. It is obvious bullshit. Total joke “self driving / EV” companies with no sales are going public with market caps higher than Honda.
Once fully-self driving comes online next quarter, Tesla owners will have robotaxis that pay for themselves while generating meme NFTs. Elon’s vision is bringing Neuralink consciousness to Mars and beyond and the weird nerds’ faith in Big Men will be rewarded.
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And just fucking lol SEC. in USA #1, all you have to do to acquire immunity from the law is to assemble an army of paint sniffing white males.
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Fyp
Trying to make sense of or rationalize or even dispute valuations right now is pointless. People are buying and selling billions of dollars of clip art for 6 and 7 figures a pop ffs.
It’s not like this is easy. You have Trump, Portnoy and ?
To be fair to the SEC, what can they even do when a legion of galaxy-brained Reddit dudes are hellbent on throwing money at Hyperloop shit? We live in an age of the dumbest imaginable personality cults.
Probably true, even with the history of the worst possible religions.
His stupid “funding secure, going private” tweet was textbook market manipulation.
The SEC does actually bring a lot of actions.
I think the problem is that corruption is so rampant in the US that you would need about 10 or 100 SECs to keep up with it all at this point.
I don’t think you can look at it quite like this. Even if consumer behavior doesn’t change (which is not clear at all), the value of the auto industry at large isn’t fixed. If there are innovations that reduce the cost of making a car, the business can become more profitable even if revenue doesn’t change. (Of course, maybe that benefit gets competed away, at least in part, but maybe not?) Also consider that there are a lot of players in the existing auto industry who capture a lot of value. Dealerships, suppliers, and unions all have a stake in the legacy US auto industry, and Tesla is, to varying degrees, disrupting those relationships. If that disruption spreads back to the legacy sector (e…g, a weakening of dealer laws), Ford could become more profitable even if its market position stays the same or weakens a bit.
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That’s a great point. Dealers make $1500+ per unit, for which they largely alienate the customer. Pure rent seeking.
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Not sure if already posted but apparently Musk needed the money to buy the stock options he has coming up. He can buy 22.8 million stocks for 6.24$ till August 2022. So he needs 145 mil to buy the options which are worth around 28 billion right now.
I’ve heard this said, but it doesn’t quite add up. Normally you can exercise options on a net basis, meaning you get shares equal to the spread between current value and the option price. You still have a huge tax bill, but then you can just sell some of the shares you got to pay the tax, and those shares don’t have any gain, so you don’t pay any capital gains tax.
It doesn’t really make sense to sell highly appreciated shares now to pay the tax on the option exercise, then keep the option shares. You’re just paying extra tax, which ends up as useless basis in the option shares.
Either something more complicated is going on, or this just doesn’t make any tax planning sense.
i just edumacated myself on this, when exercising the options but don’t sell them, 409a valuation for AMT is used rather than market price. i can’t imagine what they have it set at for musk, but it’s probably not their full value.
Public companies don’t use 409A valuations, they use trading price. And Musk’s options are very very likely not to be ISOs, which means there’s no AMT consequences and no difference between holding and selling. You just pay ordinary income on the spread when you exercise.
Trillion dollar company that can’t figure out panel gaps to save its life now shipping product with missing components.