Tesla Again Posts Steep Monthly Sales Declines Across Europe

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Flying cars though

Bad news for Tesla? Good news for TSLA.

Who knew throwing a certain salute would have blowback in Europe? Too bad American consumers are brain dead chumps.

And with this news, Tesla shares hit another high. PE now >320. What a stupid timeline.

I don’t want to believe that so many people are so stupid and, even after years of lies, still fall for Elon Musk’s fantasies. And yet, the Tesla stock rises with every bit of bad news. What will happen if, after months, there’s finally some good news? Will the stock then jump 25%?

Tesla are going to end up being the first trillion dollar valued company to literally go bankrupt the way things are going.

WHAT ABOUT 🇺🇸

Always good news. Teslas big move is it went from cars to vaporware

He dumped 250 million into Trump and other Republican campaigns. Who openly stated, they were going to eliminate the EV and emission credits. 40% of their revenue, over the last few years were from those. That revenue stream is gone. He singlehandedly, cost his company and shareholders, billions in revenue. The Cybertruck disaster would be enough to remove a CEO. Now shareholders are about to approve a potential, 1 trillion dollar compensation package for him. It’s crazy.

Noice.

And the stock keeps climbing. 😂🤣

Seriously what makes anyone think this is possible? At the very least Tesla would have to drop their battery weight by at least a factor of ten. Then the regulations to get this approved is staggering. About the only thing it accomplishes is the AI is much easier when the traffic laws are removed. Though I laugh at the idea of doing this without LiDAR and radar.  Just part of the retail propaganda pump.

Forward PE is 223. It hasn't been this high since it hit 303 in June 2020... ironically that was during the pandemic. Prior to that it hit 384 in December 2016. \_\_\_ Reminder to all that Tesla stock is not moving on car sales news. It's primarily driven by market dynamics: 1. TSLA, on account of its hyperinflated market cap, is highly weighted in index funds. Investors are now, more than ever, heavily investing in index funds. As more people push more money into these funds, the funds have to buy the underlying stocks based on weighting, and given Tesla's high weighting, they have to buy a lot of TSLA shares. 2. Large buy and hold investors in Tesla, such as Elon Musk, his family, his millionaire/billionaire friends, sheepish "we believe in Elon" funds like ARKK, and cult-like buy and hold forever retail traders who are limiting actively traded shares and volume. 3. Call options traders. Call options trading in Tesla is massive, and as the call options purchases skyrocket, the options writers buy the underlying stock, forcing the stock price up while trading volumes are low. 4. For the few people still trying to short Tesla based on their actual financials and actual news, they continuously get squeezed out due to the irrationality of the stock climbing on bad news and bad guidance. That squeeze forces the stock price up higher, which might normally cause people to take profits... but again, there are a LOT of buy and hold forever investors in this stock. The institutions keep upgrading Tesla stock, literally making up new high price targets on a whim that are based on literally nothing in Tesla's financials or guidance. They don't even justify why they're upgrading anymore, they just spike their estimates. I haven't been looking at institutional investment into Tesla, but I imagine as these analysts upgrade the stock, and retail and index funds buy up the stock, the largest institutions are starting to divest from Tesla. As a result of these dynamics, and as the stock has proven once again that negative news has very little impact on the company, the only way Tesla can fall in a significant fashion is for the entire market to correct down. This will set off a chain reaction... the house of cards crumbling down. We know this because it already happened already, and in fact has happened repeatedly since Tesla entered the S&P 500. Look back through Tesla's chart through 2021, and notice how often it spikes super high, then completely collapses... rinse and repeat over and over again. Tesla's conditions and the market are no different than they were last year around December. The market peaked and it started to correct. As people pulled money out of index funds, the index funds sold their underlying assets, with the biggest sales in the highest weighted stocks. Tesla being one of them. Tesla started selling off hard, killing the longs / call options and forcing them to sell. Since demand for call options collapsed, there was no more writers buying the underlying assets, and as the options expired, they could sell off the stock. Shorts finally got a foothold and jumped on the bandwagon. As Tesla underperformed the index, their weighting in the index funds got recalculated lower, forcing the index fund to sell even more Tesla stock. To reiterate, people sold the index funds, the index funds sold their assets proportional to weighting, causing a panic in Tesla, causing Tesla weighting to be reduced, causing the index funds to sell a greater proportion of Tesla versus other S&P 500 stocks. In the end of that early 2025 correction, Tesla declined 56% versus the S&P 500 only declining about 21%. More than double the percentage drop. \_\_\_\_ Tesla is the literal definition of a House of Cards. A stock that is heavily manipulated into a heavy weighted position in S&P 500 indexes where it sees rapid gains versus other S&P 500 stocks, but when the market corrects, Tesla corrects to a significantly larger degree than the index and other stocks. If we see another correction like last year, then Tesla could easily see another multi-month 50%+ decline. Until then, on account of the market dynamics at play and the manipulated nature of the stock, price will continue to increase until that market correction starts.

Tesla is a the bizzaro stock like in Superman. Bad news causes its stock to go up.

They know OTHER people are stupid and will pump it for them?

Where Elon's going he won't need roads or regulations if he gives Trump enough money.

One part of this I don't quite understand...somebody selling SPY must sell to someone else buying SPY, correct? So why is the fund managing SPY required to sell the underlying assets if that basket (the share of SPY) can just change hands? This part does not make sense to me. I'd think the only reason a fund would need to add more shares of SPY was if there were not enough sellers compared to the amount of people that want to buy. I guess it works in the reverse direction as well?

People in EU know Nazis were bad so Elon's salute made most people embarrassed to drive them

We already have flying cars. They're called airplanes. And it's really time consuming and expensive to get a license to drive one. And once you get to that point, the mandatory maintenance will bury you if you actually use it. Nothing that Elon is doing does anything to change these facts.

Sales remain strong in Vichy

Good job Europe, keep it up!

Maybe someone important should ask about Elon's electric plane.

My guess is a Tesla shaped kite or balloon, probably with a tail that says F-A-R-T.

bullish

As a private pilot I couldn’t agree more with this statement.

yup, up another $12 today

I was very vocal about TSLA being added to the S&P500 - i thought it was a very bad idea but they'd met the criteria - on paper - so I guess it was a done deal. I do recall the index dragged their feet on the decision and ELON LOST HIS \*\*\*\*ING MIND. I was sure then that he was trying to make Tesla too big to fail. I suspect but cannot prove that he may have hardcore engineered this with some extremely creative accounting. I hope I'm wrong and that due diligence was done.

Because passive equity net flows are consistently positive and they are essentially price-insensitive bidders into a shrinking pool of sellers (active managers which are consistently shedding AUM as a % of the overall market). The megacap stocks are also a self-reinforcing pattern due to this passive-active market structure; the bigger the stock gets, the bigger the stock gets. The implications are pretty scary to think about. If an event causes major fast selling of passive funds, there won't be many bidders because the active management AUM pool of would-be buyers is getting crushed.

"Tesla is the literal definition of a House of Cards. " ... And they keep on putting more cards to build it higher.

Didn’t you hear? They are a flying car robotic bidet company now.

I've been waiting my whole life for a car that will wipe my ass.

Not just any car, but a flying car too!

Promising flying roadsters as reaction

The top 20-30 most profitable company in the world met the criteria to be in the S&P 500? I’m shocked

Eh... I just looked it up. Tesla's ranked 173 based on their past year of earnings.

entail share frantic postbox muppet

Oh yeah, they absolutely gamed the system. Prior to entry, Musk, family, and friends, along with the cult-like buy and hold forever retail traders, funds like Cathie Woods' ARK, and some other big institutions bought up a ton of shares in the company, locking up the actively traded shares... so that when the S&P 500 index funds were forced to buy Tesla stock, it caused a massive squeeze on the demand side for the stock, causing the shares to appreciate 800% in 2020... the year of the pandemic. On top of this, and probably less planned by Musk, is that the FED and treasury started injecting trillions of dollars into the economy, which quickly made its way into the stock market, further exacerbating Tesla's rapid run up on few available actively traded shares. The shorts got completely squeezed out of the market, helping to fuel the run up as well.

It'll be interesting when this and the AI bubble pops. Tesla is giving off major Enron vibes. Greedy people never learn it seems.

Ready for Tesla to be out of the game

So it's not figuratively a house of cards. Meaning they actually have a deck of cards?

TSLA is now the stock market's equivalent of crypto. It's not good for much but everyone has to buy it because it keeps going up.

Tesla is losing sales and revenue every quarter for like 2 years already they aren't even a top 5 automaker and in the next 2 everybody would at worst catch up with thier EV's and many cases the competition will have a better product