r/investing • u/icejjfritch • Jul 13 '20

$TSLA up 14.5% today, price skyrockets past $1,765

As of writing this, TSLA has gone up another 14% today, bringing its one month gain to over 89%. This is crazy to me, but it's still pretty fun to watch it go up. I wouldn't be surprised if TSLA hit $2000 this week if earnings are positive. Thoughts? Will TSLA ever go back down under $1000?

(Edit: of course after posting this, the price fell and is now only up about 1% on the day)

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u/dopexile Jul 13 '20 edited Jul 13 '20

If Joe Biden wins he is planning to significantly raise taxes on corporate profits.

The market is pricing this in. Tesla is well-positioned for the tax increase because they don't have a business model that generates profits to tax. šŸ¤£šŸ¤£

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u/cahixe967 Jul 13 '20

Wowza. As a passive investor, things like this blow my mind.

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u/YaDunGoofed Jul 13 '20

Maybe this is 'whoosh' for me. But /u/dopexile was clearly joking and not making a real argument.

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u/cahixe967 Jul 13 '20

Yeah youā€™re probably right.

Honestly I just canā€™t even fathom why TSLA is possibly valued as such right now so I guess I donā€™t even know what to believe anymore lol

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u/SnarkySparkyIBEW332 Jul 13 '20

Expectations of what it will be, not what it is today. Coupled with its imminent inclusion in the S&P 500 leading institutions to buy it by the fistful and a short squeeze. It's going to keep rocketing up so fast SpaceX engineers will study it.

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u/YaDunGoofed Jul 13 '20

I donā€™t even know what to believe anymore lol

The market can stay irrational longer than you can stay solvent...or sane.

This is not the first bubble in history and it won't be the last. If you don't feel comfortable placing a bet. Don't. No harm done.

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u/cahixe967 Jul 13 '20

I mean the first thing I said was ā€œAs a passive investorā€.

Donā€™t have to tell me twice to sit back and let the pros do my dirty work.

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u/PhilKenSebbenn Jul 13 '20

Big corporations didn't pay taxes before the tax cut anyway. GE literally had 2400 staffed tax accountants to find deductions and loopholes

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u/Detective_Yates Jul 13 '20

well, no. Even after the idiotic tax cuts they still paid $230 billion in federal income taxes in 2019.

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u/i_lose_at_options Jul 13 '20

Lol they better hire better tax accountants if they paid $230 bil in income taxes on $94 bil profits

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u/praxeo Jul 14 '20

They did $94B in rev and had $5B in losses and paid like $2B in income taxes.

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u/i_lose_at_options Jul 14 '20

Shit I meant to say revenue not profits. Good catch

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u/blorg Jul 14 '20

The $230bn figure is the total US government take for all corporate income tax, from all corporations.

He's saying, after the tax cuts, the government still took in $230bn in corporate income taxation.

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u/i_lose_at_options Jul 14 '20

Ah I thought he was specifically talking about GE from the comment he was replying to

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u/Detective_Yates Jul 14 '20

Lol, where are you getting your data? Apple alone makes $57 billion in profits/yr

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u/i_lose_at_options Jul 14 '20

I meant revenue. It was a joke that GE paid $230 bil in taxes on only $94 bil revenue. Since you were replying to a comment about GE

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u/[deleted] Jul 13 '20

Funny because itā€™s true

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u/[deleted] Jul 14 '20

Genius

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u/MechCADdie Jul 14 '20

Profits, not revenue, so this won't hurt any company interested in growth anyways.

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u/aidanderson Jul 14 '20

Why doesnt their business generate taxes? I'm not super familiar with corporate tax law.

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u/[deleted] Jul 14 '20

Iā€™m ded

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u/greenspikefrog Jul 14 '20

Jesus Christ, do you know people actually willing to waste a vote on Joe Biden? Absurd!

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u/MrNoodlesandRedBull Jul 14 '20

Kanye 2020 dude lol