Seeking Alpha

Tesla (TSLA) is replacing Oracle (ORCL) in the Nasdaq 100 (QQQ). The change will happen prior to...

Tesla (TSLA) is replacing Oracle (ORCL) in the Nasdaq 100 (QQQ). The change will happen prior to the market's July 15 open; Oracle is moving to the NYSE on that date (PR)
From other sites
Comments (30)
  • jleonard711
    , contributor
    Comments (49) | Send Message
     
    Wow, welcome to the big leagues Tesla!
    8 Jul 2013, 08:45 PM Reply Like
  • SharkDude
    , contributor
    Comments (638) | Send Message
     
    That is ridiculous! Can't be true. 12B company replacing a 120B company?
    8 Jul 2013, 08:46 PM Reply Like
  • jleonard711
    , contributor
    Comments (49) | Send Message
     
    They aren't necessarily "replacing" them, rather ORCL is leaving the NASDAQ and moving to the NYSE and TSLA is filling the vacancy in the NAS100.
    8 Jul 2013, 08:48 PM Reply Like
  • Cassina Tarsia
    , contributor
    Comments (646) | Send Message
     
    Sounds like Tesla is here to stay!
    8 Jul 2013, 09:15 PM Reply Like
  • HarryWanger
    , contributor
    Comments (184) | Send Message
     
    Until they're not. Look at NFLX. Added to NAZ100 and quickly dropped. Then added again. Kind of silly really and says nothing about the company other than momo guys want to lure naive funds and Joe Retailer. FWIW, I'm long but certainly will sell into strength before the official listing 7/15.
    9 Jul 2013, 02:01 AM Reply Like
  • BIG_BEN
    , contributor
    Comments (155) | Send Message
     
    Wouldn't the stock go up after the move because all the index funds would be forced to buy?
    9 Jul 2013, 03:33 AM Reply Like
  • SharkDude
    , contributor
    Comments (638) | Send Message
     
    My god. They had one quarter of profits on taxpayer credits. So the taxpayer subsidized TSLA earnings. They will not be solidly profitable for years. What a joke.
    8 Jul 2013, 09:30 PM Reply Like
  • Christopher Cowan
    , contributor
    Comments (150) | Send Message
     
    The uninformed spread their filth everywhere. Tesla could have stopped at the roadster and have been profitable. The production of new vehicles is where the expenses come into play. The goal of Elon Musk is to make an impact on the entire industry.
    8 Jul 2013, 10:01 PM Reply Like
  • Qniform
    , contributor
    Comments (2603) | Send Message
     
    Spread their filth? Are we a little OCD?
    8 Jul 2013, 11:09 PM Reply Like
  • justaminute
    , contributor
    Comments (581) | Send Message
     
    No the AAPL fanbois have jumped on the TSLA bandwagon. Expect a lot of hubris.
    8 Jul 2013, 11:19 PM Reply Like
  • SharkDude
    , contributor
    Comments (638) | Send Message
     
    Uniformed? Really? They will not make solid profits for a couple of years. Forward P/E is almost 1000. They sold credits early so they will post a loss the next two quarters. That is according to the company. You are the one uninformed.
    9 Jul 2013, 12:07 AM Reply Like
  • PeterJA
    , contributor
    Comments (2436) | Send Message
     
    I have an apple tree in my backyard. It is only a foot tall, even though I planted the seed last year. What a worthless tree! No apples yet. No apples expected for years! Yes it is growing faster and faster, and yes grown trees produce tons of fruit... but I don't see a single one yet! What a joke tree.
    9 Jul 2013, 08:37 AM Reply Like
  • chickensevil
    , contributor
    Comments (679) | Send Message
     
    And all the longs are well aware of the upcoming losses... Anyone who is long and NOT expecting the losses to be coming is either blind or dreaming... Not going to change the long play, it will just give you another "buy in point" since the stock will dip (most likely) when they post those losses. But you better believe that by the end of the year they will be posting another profit.
    9 Jul 2013, 08:52 AM Reply Like
  • PeterJA
    , contributor
    Comments (2436) | Send Message
     
    "the stock will dip (most likely) when they post those losses"

     

    Not if they post a tremendous beat of sales expectations. The silly report from Autodata has set up those expectations to be pummeled.
    http://bit.ly/12VvQQs
    9 Jul 2013, 09:05 AM Reply Like
  • chickensevil
    , contributor
    Comments (679) | Send Message
     
    "Not if they post a tremendous beat of sales expectations."

     

    That is why I said "most likely". Since there is a chance that they could beat the estimates. If they hit the high or better (currently .2 cents earnings) then I would expect them to continue going up without a pullback.

     

    I guess the real question is, what are the chances they will post that .2 cents or better to know if you should buy before or after the announcement?
    9 Jul 2013, 10:06 AM Reply Like
  • PeterJA
    , contributor
    Comments (2436) | Send Message
     
    Chick, you're talking about profit expectations; I'm talking about sales. I think profit/loss won't matter if sales show explosive growth, and investors understand that income is being reinvested for more growth. Amazon has proven that.
    9 Jul 2013, 10:18 AM Reply Like
  • Julian Cox
    , contributor
    Comments (1283) | Send Message
     
    The funny thing is that this price includes the assumption of staggeringly unrealistic (low-balled) profitability and forward P:E.

     

    TSLA is the mother of all bear traps - scoff at that statement if you dare.

     

    Both of those numbers are unrealistic negative speculation built on guidance BEFORE the company took on $1.08 Billion of acceleration funding, cut their reservation deposit in half and apparently if customer VIN number reporting is anything to go by, opened up the taps on production to close to double production over guidance from mid Q2.
    9 Jul 2013, 11:01 AM Reply Like
  • chickensevil
    , contributor
    Comments (679) | Send Message
     
    Actually, this is something I was never quite clear on with these numbers and reporting on their financials. If they raise money through investing does that actually count as revenue for that quarter/year? If so, then they would show an outrageous EPS, so me thinks no... So realistically the only "new" change on these numbers will be the perceived (or real) unexpected increase in the volume of production of cars.

     

    The way I understand the business, all of these cars were technically ordered and "paid" for or at least promised with a serious deposit quite a while ago. They are just pushing them out the factory as fast as they can. In essence demand is much higher than supply to the point where there is no "surplus". Normal car companies have a constant "surplus" since you can walk up to any dealer, make an offer and drive off with the car.

     

    Why does that make a difference? Because Ford must wait for their supply to drop before they can produce more cars, otherwise the dealerships won't buy more supply and Ford would just be eating loss sitting on product noone wants. On the other side Tesla has no stock, so every car produced is a car sold. This means if it costs them... say 68k to make the Tesla, but they immediately "sell" it as it rolls off the factory, each car produced is a guaranteed 12k profit. So knowing how many cars they have produced, should be an indicator of their chances of making enough profit on each individual car to counter their financial costs in other parts of the business.

     

    That is... how I understand the difference between Tesla and say... Ford. If this is the case, the only thing that would impact their chances of hitting at .02 EPS or better would be more cars produced in the factory and hopefully less than expected or right at expected operating costs in other areas.
    9 Jul 2013, 01:30 PM Reply Like
  • Julian Cox
    , contributor
    Comments (1283) | Send Message
     
    That is basically the essence of the central point of this business. No cash sunk into inventory for the customer. It is all pre-paid with profits. They do benefit from payment terms from suppliers so the net effect on cash flow is incredible: A cash-generative growth model (that is also an auto manufacturer).
    9 Jul 2013, 01:56 PM Reply Like
  • RUCE88
    , contributor
    Comments (51) | Send Message
     
    I was reading an article today by a Motley Fool's shorty telling investors they "must sell Tesla." Ridiculous!
    8 Jul 2013, 09:32 PM Reply Like
  • MatrixUSA
    , contributor
    Comments (61) | Send Message
     
    Yeah!. And MF is telling everyone to invest in LNKD...what a JOKE !!
    8 Jul 2013, 11:20 PM Reply Like
  • stealthology
    , contributor
    Comments (312) | Send Message
     
    Woohoo!
    8 Jul 2013, 09:33 PM Reply Like
  • themayor
    , contributor
    Comments (48) | Send Message
     
    Bubble!
    8 Jul 2013, 09:33 PM Reply Like
  • David S Cho
    , contributor
    Comments (2) | Send Message
     
    I am a practicing CPA and investor. My interest has been finding and invest in the company who will bring greater impact to human being for good.
    8 Jul 2013, 10:57 PM Reply Like
  • David S Cho
    , contributor
    Comments (2) | Send Message
     
    Tesla is disrupting existing auto and energy industries. I never seen any better business model than Tesla has. Inherently, Tesla will be a great threat to major auto manufacturers and dealers. Tesla is a perfect example of grand vision and raiser sharp execution that will result in creation of new industry infra and destruction of old business model surrounding combustion engine. It is so exciting to see at this critical juncture of golbal warming threat, an American entrepreneur and his team is changing the auto industry and the world for good. Consumers, Tesla, and the earth will be the ultimate winner. I am long onTSLA. Long live Elon Musk and his team!!!
    8 Jul 2013, 10:57 PM Reply Like
  • Michael Bryant
    , contributor
    Comments (5582) | Send Message
     
    Well, that means (TSLA) will go up more.
    8 Jul 2013, 11:29 PM Reply Like
  • pat1000
    , contributor
    Comments (508) | Send Message
     
    It's a lot of fun watching people trying to catch the Genius of Elon Musk----He is light years ahead of everyone else-----
    9 Jul 2013, 01:59 AM Reply Like
  • solarwave33
    , contributor
    Comments (8) | Send Message
     
    Elon is placing his company in the drivers seat. He has always said that he won't merge or sell the company until he is mass producing an affordable EV.

     

    This is the most independent move for any successful company to keep the merger and acquisition hawks away.

     

    Has anyone ever seen or read the play, THE WATER ENGINE, by David Mamet? It is a realistic portrayal of how big companies prey upon smaller companies in the guise of financially assisting in the bringing of an innovative, revolutionary, product to market. In this case an engine which runs on H20. Once the papers are signed, the new product vanishes and becomes a rumor, or the stuff that plays are made into.

     

    And lest we forget. If Nicola Tesla wasn't so royally screwed by Thomas Edison, we'd all have Zero Energy by now, and a near zero carbon footprint.

     

    Here's to dreaming in the free world.

     

    Kudos
    9 Jul 2013, 02:23 AM Reply Like
  • skiguynyc72
    , contributor
    Comments (82) | Send Message
     
    QQQ is just the start, SPY is next! TSLA is not in any of the small cap or mid cap indexes. It will be a decent size % in the snp 500 before the end of the year is my guess!!!
    9 Jul 2013, 11:11 AM Reply Like
  • Joe E Coyotee
    , contributor
    Comments (249) | Send Message
     
    That's what I'm talking about , Go Tesla!
    9 Jul 2013, 02:06 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector