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Tesla at $550...what does it tell you about the car market, the equities market, the bond market...

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    StorkStork Posts: 5,205 ✭✭✭✭✭

    @cohodk said:

    @Justacommeman said:

    I just bought my first all electric vehicle ( not a Tesla) and It’s the best car decision Ive ever made. The torque is mind bending.

    m

    Does the whole car twist and rumble when you step on the accelerator?

    Quiet as a whisper. Head whips back into the seat if you aren't ready for it.

    For $2K the dual motor can unlock a bit more speed and drop to 3.9 seconds for 0-60. Mind you, the dual motor is the middle of the road version. If you really want to have fun in the Model 3, get the performance for 3.2 seconds. Instant torque.

    And to think the model S version (and even the 'cyber truck') will do it even faster. 2.4 seconds for the S. A nice family sedan. Zero to 60 in 2.4 seconds. Quietly.

    One of the other nice things is that even though I took delivery in October 2018 the car has all the latest updates and tweaks to anything from the wiper blade action to speed/power/range upgrades that the engineers figure out how to tweak.

    I might be a fangirl. Enough I decided to blow my coin budget on a better car than I planned -- bought it on the internet having never test driven one, and driving nearly 200 miles to pick it up. Husband thought I was crazy, but even he likes it now. But he drives it like a Honda CRV when he's behind the wheel. It's embarrassing. He too has complained of whiplash.

    And yes, predictably, if I would sell a stock (or an ounce of gold) the price was guaranteed to rise. That said, the valuations seem stupid high even with the good reports.


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    bigjpstbigjpst Posts: 3,033 ✭✭✭✭✭

    The model S is a cool car but now that the European sports and luxury cars are upping their game Tesla will struggle. Being the first high end electric car is great until the best passes you up.
    Tesla struggles with customer support and constant changes in ideas of how a company should run. Full disclosure my wife works for Tesla and has worked for several major auto manufacturers over the years and she is constantly surprised by the constant change in direction of the “plan”. Whole departments being laid off or transferred to new areas of the company where this month/quarter they decide they are needed. Until next week that is until she finds out if she is still in the schematic.

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    renman95renman95 Posts: 7,037 ✭✭✭✭✭

    Last month I looked into their ‘SUV’ at the Ala Moana mall. I figure, here in Hawaii, they’d have answer to my question, ‘where do I put my surfboards and/or paddle boards?’ Answer, industrial suction cups(?) Won’t at least one of the rear doors not be accessible? Yes. What about a canoe or a few 4x8’s, Thule cargo box,...? Both rear doors inaccessible? (No answer) Their SUV is neither Sport nor Utility. Pass.

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    Tiggs2012Tiggs2012 Posts: 167 ✭✭✭

    @Justacommeman said:

    Nope. The front end raises up a few inches in silence simultaneously as you stomp on the accelerator as it hurtles 0-60 in about 4.4 seconds. Maybe faster. My wife claims whiplash. I claim awesomeness and neck braces are underrated. A literal blast to drive. Two motors.

    m

    You got a slow one then as 4.4 is fodder, my Tesla benchmarks at 3.0 and its not even my fast car. Have a friend with another thats noticeably faster, I want a tri-motor setup on my next one. Still holding my Tesla shares. Does noone else look at the TSLA SI despite the recent gains? Very interesting.

    This thread just proves how misunderstood TSLA is despite their profits last qtr and this one plus their technology and integration.

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    PerryHallPerryHall Posts: 45,436 ✭✭✭✭✭

    What's the driving range of these cars when fully charged?

    Worry is the interest you pay on a debt you may not owe.

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    PerryHallPerryHall Posts: 45,436 ✭✭✭✭✭

    What's the driving range of these cars when fully charged?

    Worry is the interest you pay on a debt you may not owe.

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    cohodkcohodk Posts: 18,621 ✭✭✭✭✭

    @Justacommeman said:

    @cohodk said:

    @Justacommeman said:

    I just bought my first all electric vehicle ( not a Tesla) and It’s the best car decision Ive ever made. The torque is mind bending.

    m

    Does the whole car twist and rumble when you step on the accelerator?

    Nope. The front end raises up a few inches in silence simultaneously as you stomp on the accelerator as it hurtles 0-60 in about 4.4 seconds. Maybe faster. My wife claims whiplash. I claim awesomeness and neck braces are underrated. A literal blast to drive. Two motors.

    m

    Call me old school, but I prefer the sound and feel of an internal combustion engine.

    In a weird way though, the cyber truck does have some appeal. Just have to make it sound like a diesel.

    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

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    StorkStork Posts: 5,205 ✭✭✭✭✭

    @PerryHall said:
    What's the driving range of these cars when fully charged?

    These are EPA ranges. Real life can be much less if you drive like you like to drive, and if it's cold (though it's not a complete problem--and the number one selling car in Norway is the Tesla so obviously it's 'okay'). It's a more dramatic decrease than a regular car (that also has lower mileage) but, for example, I drive my 3 (LR/dual motor) regularly 190 miles each way and generally have 20-30% of my battery left if I did a full charge--including mountains and occasional bad weather. When I bought it the rated range was 310, and more has been unlocked by software tweaking and over-the-air updates.

    Cybertruck: single motor 250-triple motor 500+
    Model S: Performance 348- long range (dual motor) 373
    Model 3: Standard (single motor) 250- LR/DM and Performance (DM) are 322
    Model X: 305-328
    Model Y: 315
    Roadster: 620, will go 250+mph, have a 1.9 second 0-60 and only cost you about $250K. Not in production yet.


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    s4nys4ny Posts: 1,562 ✭✭✭

    4 months ago Tesla was under $250/share and analysts on CNBC were saying the company might not survive. Musk was ridiculed for saying the company could be taken private for $420. Shorts piled on. They are continuing to get squeezed.

    In 1901 a more dramatic short squeeze happened with Northern Pacific. It went up to $1000/share very quickly.

    This is life on Wall Street.

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    JustacommemanJustacommeman Posts: 22,847 ✭✭✭✭✭
    edited January 30, 2020 7:34AM

    @Tiggs2012 said:

    @Justacommeman said:

    Nope. The front end raises up a few inches in silence simultaneously as you stomp on the accelerator as it hurtles 0-60 in about 4.4 seconds. Maybe faster. My wife claims whiplash. I claim awesomeness and neck braces are underrated. A literal blast to drive. Two motors.

    m

    You got a slow one then as 4.4 is fodder, my Tesla benchmarks at 3.0 and its not even my fast car. Have a friend with another thats noticeably faster, I want a tri-motor setup on my next one. Still holding my Tesla shares. Does noone else look at the TSLA SI despite the recent gains? Very interesting.

    Not really. We wanted a luxury electric vehicle so we went a different route. 4.4 is plenty fast enough We have a fleet of Telsa’a and in California they grew on trees. We haven’t seen another one of ours in LA yet

    @cohodk

    Actually there is an exhaust “sound” mode if one wants to engage it. And yes you are old school. I’m lining up a 68 Shelby to buy right now so I hear you.

    @perryhall we get 250 miles on a full charge. My wife’s work has a charging station and we have one at home as well. They are all over So Cal.

    m

    Walker Proof Digital Album
    Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
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    Tiggs2012Tiggs2012 Posts: 167 ✭✭✭

    @Justacommeman said:

    Not really. We wanted a luxury electric vehicle so we went a different route. 4.4 is plenty fast enough We have a fleet of Telsa’a and in California they grew on trees. We haven’t seen another one of ours in LA yet

    Yes, really. My car hits 1g+ of accelleration force while at 4.4 you're looking at 0.6g+ of force, you just may not run into them much out there. Here in CA, I can pass with ease 4.4 cars and only need to check if its a performance Tesla model or not(most are not) and you are slow enough to be at the mercy of motorcycles. For me, thats too slow although others may not be used to fast cars.

    The under 2.5s cars you're looking at faster than fall rate speed accelleration forces and they cause some discomfort. They are borderline too fast but everyones tolerance is different. In F1, drivers have to train/strengthen their neck muscles to be able to cope which is anther league altogether.

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    cohodkcohodk Posts: 18,621 ✭✭✭✭✭

    What the heck do you need a fast car for in LA? To go from stoplight to stoplight? To look fast when stopped in traffic?

    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

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    BaleyBaley Posts: 22,658 ✭✭✭✭✭

    Electric car double purpose:

    Status signaling and virtue signaling wrapped up in one sleek package. "Good" and "Better" people saving the planet and being superior one charge at a time

    Liberty: Parent of Science & Industry

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    MsMorrisineMsMorrisine Posts: 32,218 ✭✭✭✭✭

    signals they have a traditionally fueled car for longer trips, which adds to the status

    Current maintainer of Stone's Master List of Favorite Websites // My BST transactions
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    StorkStork Posts: 5,205 ✭✭✭✭✭

    @MsMorrisine said:
    signals they have a traditionally fueled car for longer trips, which adds to the status

    Not me. I went all in. We have a beater CRV for the dogs to go to the vet in and the teenager to drive to school. And a REAL beater of a (2012 and dented) Ford Fiesta we used to knock around Europe in. Kept it for the manual transmission so my kids would learn to drive, but it's the 'spare car', mostly because it's worth nothing and no one wants it. Hard to claim status with that parked in front of the the house :D

    And my car wasn't really all that expensive compared to many. Above average yes, but not all that expensive. With the fast charger network a long trip can take more time, but my overall time in gas stations is way reduced. I plotted the drive to Disney and an 11 hour trip became a 12 hour trip. Which wasn't too far off the last time we did it in an ICE car when gas stops and food were added in.

    I realize this makes me sound a bit like a fangirl, but really just want to point out the limitations are perhaps not as limiting as some think.. Shoot, they do worse in cold weather, but Tesla is (or at least was in the last year) the number one selling car in Norway. It takes some mental re-setting, but it's like switching from a flip to a smart phone. Just, different. They aren't for everyone, but perhaps for more than realized.

    As for virtue, my virtue is that my car is (ultimately) run on West Virginia coal vs. OPEC. I have no illusions it is actually 'good' for the environment. And, it's American. I like that.

    Smaller carbon footprint and, so far, the batteries are from sources being mined relatively 'responsibly'. Cell phone batteries are much more egregious for the environment and child labor type issues. I suspect as there is more demand, ethics will slip. That said, it also depends on what kind of recycling gets done.

    Probably the most 'environmentally ethical' thing about it is that it is estimated to last around 500K miles. Much better than the 200K cars out there.

    And really, I spend enough time in my car I like having fun. It is definitely fun.

    .> @cohodk said:

    What the heck do you need a fast car for in LA? To go from stoplight to stoplight? To look fast when stopped in traffic?

    I am far from LA and drive a particularly nasty interstate that is mostly a dual lane major trucking artery. Having a car that can outmaneuver them is huge as they have a tendency to swerve all over the place. I have my speed set at 72, but can easily outgun them when I start passing a bad truck.

    Again, they are hardly for everyone, but the Model 3 at least really isn't very much of a status symbol, and they are much more practical than many realize. And fun. Don't forget fun.


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    bigjpstbigjpst Posts: 3,033 ✭✭✭✭✭
    edited January 31, 2020 7:10AM

    @Stork said:

    @MsMorrisine said:
    signals they have a traditionally fueled car for longer trips, which adds to the status

    Smaller carbon footprint and, so far, the batteries are from sources being mined relatively 'responsibly'. Cell phone batteries are much more egregious for the environment and child labor type issues. I suspect as there is more demand, ethics will slip. That said, it also depends on what kind of recycling gets done.

    Probably the most 'environmentally ethical' thing about it is that it is estimated to last around 500K miles. Much better than the 200K cars out there.

    I feel like this info is most overlooked about hybrid and electric cars. Many don’t realize that the impact on the environment overall isn’t Zero when you factor in the battery and eventual disposal. Hybrid batteries are recycled and remanufactured, but Once the warranty is up the cost is prohibitive and many won’t replace the battery but replace the car. Probably too soon to see how it goes for all electrics. Remember when plastic bags were the solution to cutting down all those trees for the paper grocery bags. I think about all those compact fluorescents that I need to call hazmat team out when I change a lightbulb now.
    Was considering a model 3 when we bought the wife a new car but really only like the S and that’s above my budget. Unless we went pre owned. The grandfathered in lifetime charging almost had me though.

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    MsMorrisineMsMorrisine Posts: 32,218 ✭✭✭✭✭
    edited February 3, 2020 2:36PM

    a share of tesla or a half ounce of gold? :#

    Current maintainer of Stone's Master List of Favorite Websites // My BST transactions
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    dpooledpoole Posts: 5,940 ✭✭✭✭✭

    Tesla's going nuts. The share price is over $900 now, in the face of a steady 45% "Sell" consensus. It's still a theological war between the Saved and the Non-believers.

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    JustacommemanJustacommeman Posts: 22,847 ✭✭✭✭✭

    @dpoole said:
    Tesla's going nuts. The share price is over $900 now, in the face of a steady 45% "Sell" consensus. It's still a theological war between the Saved and the Non-believers.

    Crazy good

    m

    Walker Proof Digital Album
    Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
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    renman95renman95 Posts: 7,037 ✭✭✭✭✭

    TSLA’s chart kinda looks like bitcoin’s in 2017. ;)

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    MsMorrisineMsMorrisine Posts: 32,218 ✭✭✭✭✭

    holding gold, holding silver, holding palladium, did some undisclosed profit taking in TSLA today

    Current maintainer of Stone's Master List of Favorite Websites // My BST transactions
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    derrybderryb Posts: 36,209 ✭✭✭✭✭

    Give Me Liberty or Give Me Debt

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    GRANDAMGRANDAM Posts: 8,376 ✭✭✭✭✭

    My son bought Tesla a few weeks back and is up $5,000+ already.

    Oh why don't I listen to him? :/

    GrandAm :)
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    The car market is OK. FCA=Dodge is making some outstanding vehicles. Demon, Hellcat redeye, Jeep Trackhawk and my Challenger 1320. 0-60 less than 4 seconds.

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    Tiggs2012Tiggs2012 Posts: 167 ✭✭✭

    @Baley said:
    Electric car double purpose:

    Status signaling and virtue signaling wrapped up in one sleek package. "Good" and "Better" people saving the planet and being superior one charge at a time

    Only the misinformed think that, its actually alot of fun to drive and does so many things so much better. Can fuel up for free/safely at home during a Pandemic, drive with ease on long trips, let it handle primary driving duties in traffic, minimal maintenance, etc. Educating ignorance the biggest obstacle.

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    MsMorrisineMsMorrisine Posts: 32,218 ✭✭✭✭✭

    fuel up for free ?

    Current maintainer of Stone's Master List of Favorite Websites // My BST transactions
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    Tiggs2012Tiggs2012 Posts: 167 ✭✭✭

    @GRANDAM said:
    My son bought Tesla a few weeks back and is up $5,000+ already.

    Oh why don't I listen to him? :/

    Same reason you didn't buy after posting this? Could've tripled your money if you had, TSLA closing in on 3k now after the 5:1 split. Another new all-time high set again today so every investor positive. Still not too late, there's a reason I'm still a long time shareholder. Could see it squeeze a bit going into SP500 inclusion next month.

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    derrybderryb Posts: 36,209 ✭✭✭✭✭

    Give Me Liberty or Give Me Debt

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    bronco2078bronco2078 Posts: 9,964 ✭✭✭✭✭

    @Tiggs2012 said:

    @Baley said:
    Electric car double purpose:

    Status signaling and virtue signaling wrapped up in one sleek package. "Good" and "Better" people saving the planet and being superior one charge at a time

    Only the misinformed think that, its actually alot of fun to drive and does so many things so much better. Can fuel up for free/safely at home during a Pandemic, drive with ease on long trips, let it handle primary driving duties in traffic, minimal maintenance, etc. Educating ignorance the biggest obstacle.

    ya well the autopilot leaves a bit to be desired. I know a guy who set it and crawled in back , had a few drinks then took a nap and wound up wrecking.

    autopilot should also mean designated driver. He paid for that and thats what he wanted dammit

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    bronco2078bronco2078 Posts: 9,964 ✭✭✭✭✭

    nice to see a coinstartled thread on page one

    Kidding , he started about 50,000 threads , many was the day when every thread on page one was glicker related

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    Tiggs2012Tiggs2012 Posts: 167 ✭✭✭

    @bronco2078 said:
    ya well the autopilot leaves a bit to be desired. I know a guy who set it and crawled in back , had a few drinks then took a nap and wound up wrecking.

    autopilot should also mean designated driver. He paid for that and thats what he wanted dammit

    Clearly his negligence then with drinking alone as it sounds like he intentionally circumvented it also with a defeat device and where its clearly noted driver needs to supervise with hands on wheel still. Which airlines allow pilots to turn on autopilot and everyone leaves the cockpit? There's people out there who have thought cruise control means full self driving.

    A Tesla is set up to pull itself over if a driver keeps his hands off the wheel and the warnings start after 30seconds. FSD is still in development for everyone. Current autopilot is amazing and already several times safer than people driving yet requires human oversight as its only really L2. It does impossible things for a human already like tracking objects/speeds/delta v in all directions, seeing through fog/blindspots, recording events across several angles, etc. but they're supplemental eyes, something way beyond what any other company is currently doing.

    Dashcam fun

    Fools tend to win anytime something is made foolproof, will be interesting to see which company claims to solve FSD first.

    Food for thought https://electrek.co/2019/02/13/tesla-model-s-converts-gearhead-joe-rogan/

    Django/Jamie drives a Tesla https://youtube.com/watch?v=tB15Da2TRWw

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    Tiggs2012Tiggs2012 Posts: 167 ✭✭✭

    Per the OP's original question, tesla is still a nothing burger compared to the bond market even now. Just take a fragment of it, the US treasury debt, and look how much more that has grown in comparison. People should pay more attention to the bond market than the stock market especially the fed moves.

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    blitzdudeblitzdude Posts: 5,460 ✭✭✭✭✭

    Tiny bubbles.........Semper Fi!

    [https://youtu.be/mlCiDEXuxxA]

    The whole worlds off its rocker, buy Gold™.

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    TwoSides2aCoinTwoSides2aCoin Posts: 43,849 ✭✭✭✭✭

    Second richest guy in the world has a nothing burger ? I wonder if McDonalds feels threatened.

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    derrybderryb Posts: 36,209 ✭✭✭✭✭

    @TwoSides2aCoin said:
    Second richest guy in the world has a nothing burger ? I wonder if McDonalds feels threatened.

    He should work for the FED where talk is everything and the product doesn't matter.

    Give Me Liberty or Give Me Debt

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    TwoSides2aCoinTwoSides2aCoin Posts: 43,849 ✭✭✭✭✭

    @derryb said:

    @TwoSides2aCoin said:
    Second richest guy in the world has a nothing burger ? I wonder if McDonalds feels threatened.

    He should work for the FED where talk is everything and the product doesn't matter.

    I'm not sure he needs to moonlight.

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    bronco2078bronco2078 Posts: 9,964 ✭✭✭✭✭

    @Tiggs2012 said:

    @bronco2078 said:
    ya well the autopilot leaves a bit to be desired. I know a guy who set it and crawled in back , had a few drinks then took a nap and wound up wrecking.

    autopilot should also mean designated driver. He paid for that and thats what he wanted dammit

    Clearly his negligence then with drinking alone as it sounds like he intentionally circumvented it also with a defeat device and where its clearly noted driver needs to supervise with hands on wheel still. Which airlines allow pilots to turn on autopilot and everyone leaves the cockpit? There's people out there who have thought cruise control means full self driving.

    A Tesla is set up to pull itself over if a driver keeps his hands off the wheel and the warnings start after 30seconds. FSD is still in development for everyone. Current autopilot is amazing and already several times safer than people driving yet requires human oversight as its only really L2. It does impossible things for a human already like tracking objects/speeds/delta v in all directions, seeing through fog/blindspots, recording events across several angles, etc. but they're supplemental eyes, something way beyond what any other company is currently doing.

    Dashcam fun

    Fools tend to win anytime something is made foolproof, will be interesting to see which company claims to solve FSD first.

    Food for thought https://electrek.co/2019/02/13/tesla-model-s-converts-gearhead-joe-rogan/

    Django/Jamie drives a Tesla https://youtube.com/watch?v=tB15Da2TRWw

    that didn't deserve such a well considered response , its something I made up in no more time than it took to type :#

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    bigjpstbigjpst Posts: 3,033 ✭✭✭✭✭

    Every auto manufacturer deals with pattern failures and various problems that create the need for recalls and spur lawsuits. Millions of cars are still under an airbag recall. Where the device put there to save your life actually kills you. This is only new to Tesla because they are still in the early stages of real mass production.
    Tesla has something that most EV and hybrids never had. A cool looking car that is fun to drive. And you can pretend you are saving the planet. (Until we have to dispose of all them batteries)
    I’ve been told the stock price is too high but it’s gone up 10x since then. So either the castle in the sky is more attractive than we think or the people saying it are using old outdated theory. I guess we will find out eventually but I’ll ride it to the bank with the free money TSLA is passing out.

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    derrybderryb Posts: 36,209 ✭✭✭✭✭
    edited November 26, 2020 8:32AM

    @bigjpst said:
    Every auto manufacturer deals with pattern failures and various problems that create the need for recalls and spur lawsuits. Millions of cars are still under an airbag recall. Where the device put there to save your life actually kills you. This is only new to Tesla because they are still in the early stages of real mass production.

    In the old days this would have affected what used to be called "fundamentals" when it came to putting a valuation on the company's stock. Today valuations are simply a mixture of algorithms and speculation. Actual value has become irrelevant, until of course when the music stops and everyone is scrambling for a chair.

    Give Me Liberty or Give Me Debt

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    3stars3stars Posts: 2,282 ✭✭✭✭✭

    Electric cars are the curly lightbulbs of the auto industry. Hydrogen is the LED. Quick to refuel, predictable range at any temperature / climate, no toxic battery packs. Zero emissions. Once hydrogen gets cheaper it should take off.

    Previous transactions: Wondercoin, goldman86, dmarks, Type2
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    bigjpstbigjpst Posts: 3,033 ✭✭✭✭✭

    @derryb said:

    @bigjpst said:
    Every auto manufacturer deals with pattern failures and various problems that create the need for recalls and spur lawsuits. Millions of cars are still under an airbag recall. Where the device put there to save your life actually kills you. This is only new to Tesla because they are still in the early stages of real mass production.

    In the old days this would have affected what used to be called "fundamentals" when it came to putting a valuation on the company's stock. Today valuations are simply a mixture of algorithms and speculation. Actual value has become irrelevant, until of course when the music stops and everyone is scrambling for a chair.

    One big difference is that Tesla has a huge wait list of people who want to purchase cars that aren’t dissuaded by these events. They keep forking over the cash to buy the cars. Now solar panels and power walls.
    The day after the release of the Truck videos were hailed as a flop by the media the presales went through the roof.
    Not saying it isn’t a shell game but the the things that we think should scare off buyers and drive price down don’t seem to be the same for Tesla.

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    @3stars said:
    Electric cars are the curly lightbulbs of the auto industry. Hydrogen is the LED. Quick to refuel, predictable range at any temperature / climate, no toxic battery packs. Zero emissions. Once hydrogen gets cheaper it should take off.

    Plug Power is looking to go big with hydrogen. Their stock gains have been crazier than Tesla recently.

    Successful BST deals with mustangt and jesbroken. Now EVERYTHING is for sale.

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    3stars3stars Posts: 2,282 ✭✭✭✭✭

    @Icollecteverything said:

    @3stars said:
    Electric cars are the curly lightbulbs of the auto industry. Hydrogen is the LED. Quick to refuel, predictable range at any temperature / climate, no toxic battery packs. Zero emissions. Once hydrogen gets cheaper it should take off.

    Plug Power is looking to go big with hydrogen. Their stock gains have been crazier than Tesla recently.

    I’m up 700% so far on PLUG, GEVO is also a good alternative fuel company for applications that can’t use hydrogen or electric.

    Previous transactions: Wondercoin, goldman86, dmarks, Type2
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    I lucked into Plug even earlier than you but it's obvious the traders are playing, so beware. It's been common for plug to trade up or down a dollar every day but today the swing was almost $4.00! Tesla has a PE of 1,000+ and Plug has no earnings. Maybe time to take some profits.

    Successful BST deals with mustangt and jesbroken. Now EVERYTHING is for sale.

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    The times they are a changin'.

    I drove by the local Harley dealer and saw that they had charging stations with cars plugged in. :o

    Successful BST deals with mustangt and jesbroken. Now EVERYTHING is for sale.

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    derrybderryb Posts: 36,209 ✭✭✭✭✭
    edited December 14, 2020 12:00AM

    Speaking of equities:

    The Little-Known Provision In The CARES Act That Could Trigger A Year-End "Selling Deluge"

    "Specifically, Section 2022 of the CARES Act eliminates the 10 percent early withdrawal penalty if you are under the age of 59 ½ and withdraw up to $100,000. It also allows for the spread out of your income tax liability over three years rather than the same year you withdraw the money. And since the window to make these penalty-free early withdrawals closes by the end of 2020, millions of cash-strapped households may have no choice but to sell tens, if not hundreds of billions in passively-managed funds to take advantage of this one-time offer to avoid a 10% early withdrawal charge."

    The question remains, "how many Americans in need even know about this little publicized benefit?"

    Give Me Liberty or Give Me Debt

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    taxmadtaxmad Posts: 960 ✭✭✭✭

    @derryb said:
    The question remains, "how many Americans in need even know about this little publicized benefit?"

    If they need the money, I am sure they are aware. However you would be foolish to withdraw money from your plan now just to avoid the 10% penalty. If you pulled the full $100,000 and spread the liability over 3 years, that $33K would kick you up a tax bracket - and depending on how GA goes you could lose a sizeable chunk of that money to taxes

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    OPAOPA Posts: 17,104 ✭✭✭✭✭

    "Tesla at $550...what does it tell you about the car market"

    I should have loaded up on that stock in Jan 2020 @ $100 per share on Jan 14 when this thread first started.

    Price is now over $600 per share. :'(

    "Bongo drive 1984 Lincoln that looks like old coin dug from ground."
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    WingsruleWingsrule Posts: 2,983 ✭✭✭✭

    650+ today. Will be interesting to watch today’s closing action in preparation for the S&P500 add.

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