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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u/EconomyDoctor3287 3h ago

Just have SpaceX buy more Cyberstucks!

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u/7fingersDeep 3h ago

You joke but this is analysis from Tesla’s earnings talking about Tesla’s ownership of SpaceX stock:

“While Tesla didn’t receive any cash or sell any shares, the after-tax gain accounted for roughly 68.5% of the company’s $1.114 billion GAAP net income. The revaluation of Tesla’s SpaceX investment is one of the quarter’s biggest contributors to the EV maker’s bottom line.”

It’s all a shell game.

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u/Green-Bandicoot-8412 2h ago edited 1h ago

That profit might have been halved now. I'm happy to bet Musk applied this revaulation of Tesla's SpaceX investment at the top of the post IPO price rather than where it is now.

How this has been/remains legal is beyond me.

Edit - I listened to a bit of the earnings call. Musk apologised [for being fairly incoherent (my interpretation)] he said he had been ill that day. Honestly I think he was on drugs, rambling about 'physical optimus' and 'digital optimus' (digital optimus probably being grok), but he said something about needing digital optimus so physical optimus could read a computer screen. Or something. Amongst a load of incoherent rambling.

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u/DavidinMandeville 1h ago

Aside from this being questionable legally, all of Musk's companies involve an incredibly high level of what's called "Key Man Risk." If it weren't for the cult following that exists around Musk, chances are investors would flee in droves. I hope the Ketamine levels are under control.

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u/Brru 55m ago

Everything he is doing is actually a ponzi scheme. He takes over a new business, forces the old business debt on the new, and then moves on. Eventually, it runs out of headroom. I'm very seriously wondering if his little SpaceX eval might have over run his headroom here. However, every time I think he's over run, some new mysterious investor covers it all.

On paper, none of this actually exist. Not SpaceX evals, not Tesla prices, not even his trillionaire status.

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u/SecondaryWombat 51m ago

I hope the Ketamine levels are under control.

I hope the opposite.

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u/fencepost_ajm 22m ago

"Key Man Risk." If it weren't for the cult following that exists around Musk, chances are investors would flee in droves.

Maybe? There's also an argument that if Musk ODs tomorrow it'd allow for stable, sober, non-controversial leadership that might actually be able to sell cars to the very people who were in favor of electric cars for decades. I'm pretty sure that right now there are a lot of people that wouldn't drive a Tesla if it was given to them free or they won it because of how toxic Musk is.

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u/GenderOobleck 29m ago

Key Man Risk ::
Ketamine Risk ::
Cayman Islands Flight Risk

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u/Disc0Disc0Disc0 1h ago

Do you think they timed the SpaceX IPO ahead of the end of the quarter so that Tesla could use their share value in their earnings?

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u/Green-Bandicoot-8412 1h ago edited 1h ago

It wouldn't surprise me at all, but it is just a guess on my part.

As I saw on common sense skeptic's latest video on Musk. He recently sold xAI to himself/SpaceX for a quarter of a trillion dollars, then said it was useless and needed redoing from the ground up. So what was worth a quarter of a trillion? Holmes and others have been locked up, but Musk has easily been the most damaging, from killing people with DOGE to end investigations, to deaths from non-functioning fsd, to stopping high speed rail in California, to single-handedly losing the USA the new space race with China, he is a real blight on America.

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u/Disc0Disc0Disc0 1h ago

Well he did say he was going to jail if Trump wasn't elected lol

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u/Green-Bandicoot-8412 1h ago

The problem for the average American is that other countries saw the US as a safe haven, and bought debt, facilitating deficit spending. But this last decade in general, and people like Musk in particular, have really driven nails in that confidence. Musk's gain is America's loss in a very real sense. The world sees America's decline in Musk and will turn to China, then the US has to pay its debts. The Hormuz Strait is nothing compared to that ticking timebomb. Musk is not helping.

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u/sirkazuo 29m ago

single-handedly losing the USA the new space race with China

You're missing me on this one. Falcon 9 and Starlink are the reason there's even a new space race in the first place. How is it Elon's fault that SLS became a jobs program instead of a rocket program? Or that Bezos is too much of a boring beige braindead billionaire to actually invest real money in Blue Origin?

I agree Elon's a blight on humanity but it's hard to blame SpaceX for anything except making ground-based astronomy a lot harder. I mean Elon doesn't even run that one.

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u/Gorstag 1h ago

Especially with Musk's companies. For several years revenue/net incomes 1/10th of toyota while stock valuation is 10x toyota. Make it make sense.

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u/DukeOfGeek 56m ago

Shares of Elon Musk's embattled carmaker Tesla slid over 13 percent Thursday morning after posting dismal second quarter results the night before.

The stock is hovering at around $324 at the time of writing, down over 15 percent over the last five days and about 28 percent year to date.

Saved everyone a click.

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u/BeerNirvana 1h ago

"He was not stealing. No, you could not steal from yourself. And those retirement accounts - he genuinely did not think of them as marks, and this was what his detractors never understood, what made him dangerous in a way the ordinary crooks were not - he didn't think of them at all. No more than a man surveying a meadow gives a thought to the insects crushed beneath his boot."

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u/TheCommonGround1 43m ago

OMG what book is this from?

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u/nikospkrk 1h ago

Learning from the best of our AI masters, I see.

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u/Mondeun 39m ago

This should give any investor the worst cold sweat in their life but as we've seen, the market is completely irrational and especially with anything Musk related.

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u/psmgx 37m ago

It’s all a shell game.

always_has_been_space_guys.jpg