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Proposed California Bill would exclude TSLA from EV Buyer Credits.

Posted on 11/26/24 at 8:06 am
Posted by Norway
Member since Aug 2024
995 posts
Posted on 11/26/24 at 8:06 am
Obviously this had a lot to do with Tesla's meltdown yesterday, but how would that even be legal ?

Posted by Lsut81
Member since Jun 2005
83693 posts
Posted on 11/26/24 at 8:09 am to
And Musk will sue, and win...

Don't know why Musk hasn't completely shut down all operations in Cali and moved everything to the Nevada plant or continued investing in Texas.

Posted by stout
Porte du Lafitte
Member since Sep 2006
179404 posts
Posted on 11/26/24 at 8:09 am to
Show us a screenshot of your Telsa trade yesterday where you say you cashed in big by buying puts at the open despite there being no earnings call play or a real reason to buy puts other than pure gambling because you have no idea what you are doing.


Posted by Norway
Member since Aug 2024
995 posts
Posted on 11/26/24 at 8:14 am to
quote:


Show us a screenshot of your Telsa trade yesterday where you say you cashed in big by buying puts at the open despite there being no earnings call play or a real reason to buy puts other than pure gambling because you have no idea what you are doing.


I shorted at the open yesterday using TSLQ (2x TSLA Short).

No reason ?
I shorted TLSA on valuation considering the silly run TSLA has been on since the election ?
Who says I shorted it due to an earnings call or news ?
TSLQ was up over 10 percent yesterday, but yeah I don't know what I am doing.


Man, it really bothers you doesn't it ?
This post was edited on 11/26/24 at 8:19 am
Posted by UltimaParadox
North Carolina
Member since Nov 2008
51340 posts
Posted on 11/26/24 at 8:20 am to
Guessing it would similar to the govt EV credit, based on sales before it went away.

Would be a little surprised if it actually made it through California legislation though.

Granted California is like 50% of the EV market, guessing half of Tesla's sales are from the state
Posted by stout
Porte du Lafitte
Member since Sep 2006
179404 posts
Posted on 11/26/24 at 8:21 am to
Post the screenshot
Posted by Joshjrn
Baton Rouge
Member since Dec 2008
31540 posts
Posted on 11/26/24 at 8:34 am to
quote:

And Musk will sue, and win...

While obviously politically motivated, this is their stated reason:
quote:

"The governor’s proposal for ZEV rebates, and any potential market cap, is subject to negotiation with the legislature. Any potential market cap would be intended to foster market competition, innovation and to support new market entrants," his office said.

And considering this kind of legislation would only have to clear a Rational Basis test, I think it would do so fairly easily. Government giving tax breaks/subsidies to market entrants has been a thing forever.
Posted by Lsut81
Member since Jun 2005
83693 posts
Posted on 11/26/24 at 8:37 am to
quote:

Any potential market cap would be intended to foster market competition, innovation and to support new market entrants," his office said.


If Tesla is the only one excluded, think it will be pretty easy to show that they singled them out.

Any objective individual knows this is political.
Posted by UltimaParadox
North Carolina
Member since Nov 2008
51340 posts
Posted on 11/26/24 at 8:40 am to
I would imagine Ford would be left out as well, but that does not make headlines in the news
Posted by Joshjrn
Baton Rouge
Member since Dec 2008
31540 posts
Posted on 11/26/24 at 8:42 am to
quote:

If Tesla is the only one excluded, think it will be pretty easy to show that they singled them out.

Any objective individual knows this is political.

Only if they are complete idiots. TSLA has a stock market cap of $1.06 Trillion and sold 1.8M electric cars in 2023. If they set the caps at $1T or 1.6M electric cars, obviously that would look super fricky and would be hard to defend. But if the caps come in way below those numbers, I think it would be fairly easy to defend, even if Tesla is the only company currently above the cap.

This conversation is also horribly premature. There is no indication that Tesla would be the only company excluded; they are simply the largest EV company, and so if there is a cap, they will obviously be excluded.
This post was edited on 11/26/24 at 8:43 am
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