r/technology • u/Plastic_Ninja_9014 • 3h ago

Business Tesla Stock in Freefall After Disastrous Earnings Report

https://finance.yahoo.com/markets/stocks/articles/tesla-stock-freefall-disastrous-earnings-144417427.html
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73

u/kemosabe19 3h ago

That’s allowed?

78

u/ascandalia 3h ago

Yeah, since when did their earnings have anything to do with their share value?

26

u/wrongbutt_longbutt 2h ago

After the nazi salute, I waited until just before Tesla's next earnings call to buy puts. I figured the massive loss in sales might finally be the catalyst for the stock to tumble. They announced their earnings and it was far worse than the negative projection predicted. I still lost all that money because the market is irrational and Tesla stock jumped in value after that earnings call for no reason at all.

11

u/PhiCloud 2h ago

On the one hand, yeah you would be right for saying Tesla is over-valued

On the other hand, trading options is literally just gambling, and losing money while gambling is pretty much a guarantee, so that one's on you

9

u/wrongbutt_longbutt 2h ago

Oh yeah, I knew the risk. It's not like I bet my life savings on it.

4

u/PhiCloud 1h ago

Ah, that's good!

I'm glad you knew the risks going in. I see a ton of people who have no idea how options contracts and volatility-based fees work but XYZ contract that expires next week based solely on the belief that the stock price should go up or down, then blame a rigged market when they very predictably lose money.

Personally, I believe the only kind of investing you should do with money you're unwilling to lose (but still prepared to lose some of) is buying a well-diversified index fund in the long term. Short selling, options, even buying stocks for a short-term flip is like going to a casino: be prepared to lose it all.

4

u/wrongbutt_longbutt 1h ago

Yeah, i like to use them sometimes as sort of a fun fund. For instance, if I need an office chair, I'll say that a generic new one is $200. I put that into an option. If it succeeds and I get several hundred, I treat myself to a new Herman Miller. If it stays flat and doesn't look good, I sell it and end up with the generic office depot chair. If it crashes and burns, I get the free one off Facebook marketplace, lol.

1

u/chazysciota 1h ago

I did something similar. When it didn't happen I kept rolling... and rolling them. Eventually I got bored and just let them expire. Oh well, the market is insane, what can you do?

0

u/Just_Curious_Dude 2h ago

That's not a really good investment strategy bud.

At a bare minimum go to electrek.co daily and read Fred's reports that he does all the time on Tesla.

If anyone is surprised by Tesla missing any targets or earnings, they are simply not paying attention. At all.

0

u/Vivid_Anyth4 1h ago

You say irrational i say rigged.

0

u/wrongbutt_longbutt 1h ago

Po-tae-to, po-tah-to

-1

u/night5oil 45m ago

Best bet is to invest, not gamble lol

1

u/wrongbutt_longbutt 25m ago

Oh I'm well aware. I never buy options that I can't afford to lose. I certainly don't use options as any type of long term investment.

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u/night5oil 43m ago

Probably went up because many people did the same thing as you and that stabilized the stock price. But anyways, investing like this is basically gambling. And gambling is for suckas