Tesla, The Boring Company, Twitter discussed on Tesla Daily: Tesla News & Analysis


Look at some of the details behind that, and we'll continue discussing Tesla's earnings report yesterday, some criticism today about the regulatory credits assisting Tesla's beat. So I want to take a look at how Tesla's numbers came in, excluding regulatory credits, then a couple other things from earnings, and we also have news on The Boring Company. All right, so looking at the stock after reporting earnings Tesla today finishing up 3.2%, but kind of a disappointing day considering that in the morning, Tesla was up over 10%. So the closing price today of a $1008, 78 cents. That's a little bit below where Tesla is trading just two days ago before reporting these excellent earnings. So of course on Wednesday before Tesla reported Netflix was dragging things down and then today, even though the NASDAQ started out positive, kind of a straight line down just throughout the day. With Tesla following it on the way down and sometimes that's just how it goes. I know I mentioned this on the live streams, but Tesla right now as listed on Yahoo financing and Google finance is trading at 206 times earnings, but that is using the earnings before yesterday's report. Once that gets updated to the $7 and 37 cents, that Tesla's at now for the last 12 months for gap earnings per share. That price to earnings ratio, that's going to drop from 206 X to 137 X. The multiple compression continues and every quarter we go, that's going to keep happening, and that continues to raise the floor on where Tesla could reasonably trade, which is kind of funny because then you see these analysts with their low price targets and the three or $400 range, raising them every quarter by 15, 20%, just like we talked about expecting to happen 6 months ago or so. Anyway, we'll talk a little bit more about that stuff in a second, but I want to start off here with the X holdings news. This is actually a triumvirate of companies that Elon has started X holdings one, X wings two and X holdings three. And these were disclosed today in an updated 13 D filing with the SEC from Elon Musk in relation to his investment in Twitter. So I've just right off the bat here, even though there has been discussion around some so called company X and maybe that could be used to merge to some extent, Tesla SpaceX, nearly born company. There doesn't appear to be any connection to that here. I do still think it's going to be relevant for us to discuss in terms of Tesla because this does involve the bid for Twitter and the bid for Twitter involves Elon's capital. And of course, Elon's capital involves his stake in Tesla, so we need to understand what's going on with this. So we'll take a quick look at this 13 defiling. Remember 13 D filings are used to update on active investor activity. We know that previously Elon had submitted an offer to Twitter's board to buy Twitter for $54, 20 cents per share. As we talked about Twitter then adopted the shareholder rights plan, which basically created a poison pill, which would dilute the equity and Twitter significantly. If any investor acquired more than 15% of outstanding shares, Elon is at around 9%. So clearly the board trying to prevent Elon from acquiring Twitter and that was kind of the last we had heard about it until this filing, which notes that Twitter has not yet responded to the previous proposal, given the lack of response by Twitter, Elon is exploring whether to commence a tender offer to acquire all the outstanding shares of common stock..

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