Is the recent GameStop story highlighting how little stock price is based on reality?

[godisney14]

One of Tesla's greatest strengths is they now develop, manufacture and integrate their own batteries. When you cut, or minimize, a supplier's output/quality out of the equation, the I.P. and control become your own. And selling that I.P. can be very favorable for a company's profit sheet.

Yea, that was basically the point I was meaning to make. That Tesla is vertically integrated, and those battery packaging processes are proving to be a huge advantage over other car makers that are relying on limited supplies from third parties.

Investing in battery manufactures is a great choice moving forward with the looming transition to EV. (Look at what GM announced).

But besides the battery aspect, their motors are just that much more efficient. The energy consumption versus performance of these competing cars are laughable.

I do admit, though, that Tesla’s service is very hit and miss.

 

[hertamaniac]

Yea, that was basically the point I was meaning to make. That Tesla is vertically integrated, and those battery packaging processes are proving to be a huge advantage over other car makers that are relying on limited supplies from third parties.

Investing in battery manufactures is a great choice moving forward with the looming transition to EV. (Look at what GM announced).

But besides the battery aspect, their motors are just that much more efficient. The energy consumption versus performance of these competing cars are laughable.

I do admit, though, that Tesla’s service is very hit and miss.

Tesla is still susceptible to some of the raw material suppliers used in the battery construction process. There is finite amount of material, such as lithium crystals, available to the entire battery market.

Battery manufacturers often incur high R & D costs as they always push the energy/power limits in their cell architecture(s). So while on the surface it may look like a sound investment, it does offer the risk for bleeding technology costs.

 

[DLgal]

One of Tesla's greatest strengths is they now develop, manufacture and integrate their own batteries. When you cut, or minimize, a supplier's output/quality out of the equation, the I.P. and control become your own. And selling that I.P. can be very favorable for a company's profit sheet.

They don't make any profit off that. I just read an article that Tesla's ENTIRE PROFIT came from the sale of zero emission credits to other auto manufacturers who failed to meet their quotas for clean vehicle production. If not for those credits, Tesla would have posted ANOTHER loss for 2020. What a scam.

https://www.fool.com/investing/2021/01/30/teslas-profits-are-not-from-selling-cars/

 

[Starport Seven-Five]

Tesla is still susceptible to some of the raw material suppliers used in the battery construction process. There is finite amount of material, such as lithium crystals, available to the entire battery market.

Battery manufacturers often incur high R & D costs as they always push the energy/power limits in their cell architecture(s). So while on the surface it may look like a sound investment, it does offer the risk for bleeding technology costs.

Yep. This has even been a recent subject regarding Tesla:

“The main reason we’ve not accelerated new products is — like for example Tesla Semi — is that we simply don’t have enough cells for it. If we were to make the Semi like right now, which we could easily go into production with the Semi, but we would not have enough cells for it right now. We will have enough cells for Semi when we are producing the Tesla 4680 in volume.”

“Basically we do not see any issues with creating a compelling long-range truck with batteries apart from cell supply,” Musk said.

Tesla's vertical integration works well right now. I would be concerned though that automotive battery tech may evolve to different chemistry or form factors and require Tesla to obsolete capital/tooling earlier than they had expected. Personally, I think it's better to put that risk on suppliers at this point so you can avoid the financial risk and R&D costs.

 

[hopemax]

Supposedly, silver is their next target:

https://www.cnbc.com/2021/01/31/sil...rs-try-their-squeeze-play-with-the-metal.html

If you actually go to WSB, they are all “what the?” They are confused as to why all the financial media thinks they’re buying silver. There were posts this weekend explaining why that would be a bad idea and calling a silver squeeze a hoax. And apparently the sub has never been interested in commodities. Now they are trying to track down the original reporting and digging into who is actually buying silver (they think it’s Citadel).

Needless to say they are taking it as more evidence of how manipulated the system is and the complicity of the media by regurgitating claims without evidence. And so they are buying more GME.

 

[Pea-n-Me]

I learned two things today, basically one that is fairly amusing and another that I was not aware of. I was not aware that one of the largest positions held in Gamestop was 9 million shares owned by one of the founders of Chewy.com. They sold out to Petco for a lot of money and he plays the market with a lot of his money.

Secondly a lot of the folks who bought very small lots of Gamestop did so back in November and the reason was that chat started on a gamers chat board that asked the question, "what if we all bought shares of Gamestop, do you think gamers could own the whole thing?" My son in law and his friends, all in their 30's all with good jobs bought small lots of Gamestop at $8 tp 10 a share. He owns 20 shares, sort of bought one day when he said why not?

This “how they did it” story was on boston.com.

https://www.boston.com/news/national-news/2021/01/29/roaring-kitty-gamestop

 

[JimMIA]

Last time I checked, GME was down 27% today. At one point it was down 30% and trading was halted briefly.

 

[Cannot_Wait_4Disney]

Last time I checked, GME was down 27% today. At one point it was down 30% and trading was halted briefly.

Wait a minute. You mean they told me about the pump, but didn't tell me about the dump? How could you do this my Reddit Bros? I thought we had something special.........

 

[hopemax]

WSB would say, "look at the volume." They believe this is a ladder attack (Hedges swapping a low volume of shares back and forth among themselves at incrementally lower prices in order to get real sellers to panic sell). They anticipate it being a daily thing (started last week), and are encouraging people to hold and if they are able "buy the dip." Everything is being interpreted as a psychological game and that they need to outlast all the manipulation and that the wall street players are just trying to get people to panic, or get bored waiting for the rocket and sell.

 

[JimMIA]

WSB would say, "look at the volume." They believe this is a ladder attack (Hedges swapping a low volume of shares back and forth among themselves at incrementally lower prices in order to get real sellers to panic sell). They anticipate it being a daily thing (started last week), and are encouraging people to hold and if they are able "buy the dip." Everything is being interpreted as a psychological game and that they need to outlast all the manipulation and that the wall street players are just trying to get people to panic, or get bored waiting for the rocket and sell.

Yep..."look at the volume!" From up to 15 MILLION shares a day to only 264,000 so far today.

 

[JimMIA]

GME closed down an even $100.00 per share today, almost -31%.

And here's a story about the wider effect on some pension funds:

https://www.cnbc.com/2021/02/01/why...may-hurt-retirees-along-with-hedge-funds.html

 

[TLSnell1981]

GME closed down an even $100.00 per share today, almost -31%.

And here's a story about the wider effect on some pension funds:

https://www.cnbc.com/2021/02/01/why...may-hurt-retirees-along-with-hedge-funds.html

Wish I could like and also choose the sad face

 

[JimMIA]

Wish I could like and also choose the sad face

Yeah, GME is down another $39 in after-hours, so almost a 40% drop today. An one point it was actually down $50, but only for a brief time.

Volumes amped up huge, but it's hard to tell who got really hurt and how bad at this point. But when you see big volume and big swings like that, I'm not betting on the little guys.

 

[godisney14]

Get ready for SPCE! Figuratively and literally rockets to space.

Glad I bought some lower a while back before all WSB hoopla made mainstream news.

 

[godisney14]

They don't make any profit off that. I just read an article that Tesla's ENTIRE PROFIT came from the sale of zero emission credits to other auto manufacturers who failed to meet their quotas for clean vehicle production. If not for those credits, Tesla would have posted ANOTHER loss for 2020. What a scam.

https://www.fool.com/investing/2021/01/30/teslas-profits-are-not-from-selling-cars/

Glad I knowingly signed up for that scam.

 

[angelmav]

I recall during the tech bubble not understanding the value attached to the stock for these companies and never trusting the value attached. Well, I was right because it’s all a guess. Big players manipulate the market all the time. This is just a wrinkle in that formula.

 

[hertamaniac]

They don't make any profit off that. I just read an article that Tesla's ENTIRE PROFIT came from the sale of zero emission credits to other auto manufacturers who failed to meet their quotas for clean vehicle production. If not for those credits, Tesla would have posted ANOTHER loss for 2020. What a scam.

https://www.fool.com/investing/2021/01/30/teslas-profits-are-not-from-selling-cars/

You don't have to sell the I.P. for it to have a positive effect on your books. In the battery industry, it is often a race to secure the technology to impede/block your competitors from manufacturing. In the case of Tesla, just having secured I.P.s can keep your technology locked from the mass market.

And in some cases, there can be licensing/royalties that are part of the battery chemistry used in the cell build processes.

 

[hertamaniac]

Tesla's vertical integration works well right now. I would be concerned though that automotive battery tech may evolve to different chemistry or form factors and require Tesla to obsolete capital/tooling earlier than they had expected. Personally, I think it's better to put that risk on suppliers at this point so you can avoid the financial risk and R&D costs.

This is why there are so many different flavors of battery chemistries and architectures. What works in a vehicle for an EV, may not translate well to say, commercial/industrial/utility sectors. Scaling cells in series is not a trivial task as things get really complex when you array the cells.

Tesla has made the residential Powerwall, which I believe uses NMC, the same chemistry as their vehicles; I do not know if the cells/blocks are the same.

 

[JimMIA]

GameStop continues to unwind. GME closed at $325 on Friday. It dropped to $186 yesterday, and is currently selling at $130 (and dropping).

That's a 60% drop, and we're just getting started.

 

[godisney14]

GameStop continues to unwind. GME closed at $325 on Friday. It dropped to $186 yesterday, and is currently selling at $130 (and dropping).

That's a 60% drop, and we're just getting started.

$137 now....and halted. That’s an 82% surge from today’s low since the news of RH increasing the limits on Buys. Still a limit and other brokerages haven’t lifted yet. You don’t call that manipulation?