Why Elon Musk’s Tesla Twitter Poll Matters

Why Elon Musk’s Tesla Twitter Poll Matters

When Tesla was added to the S&P 500, those inclined to fret about market integrity suggested inclusion could affect aggregate valuations, volatility and performance. Concerns were mostly overblown, as they usually are, but they weren't unfounded. The only thing more erratic than Tesla is the brain behind it, and a subsequent foray into balance-sheet Bitcoin seemed to validate critics' contention that one way or another, Elon Musk would end up embedding new risks into a market that was alrea
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5 thoughts on “Why Elon Musk’s Tesla Twitter Poll Matters

  1. I am not a trader, however, if I were- I definitely would have voted yes. It seems like it would be better to have a known significant event in the near term you could trade around.
    There is definitely a culture of religiously fervor going on at Tesla. A young relative of mine (under 30), is an engineer there- who could sell the Tesla interest, pay taxes, and still be a multi-millionaire.

  2. “‘… spot Equities are left as a derivative of the Options market and its flows.’” When you introduced this quote a couple of days ago your post excluded comments. That day I wanted to say that, imo, this conclusion is dead on. One reason I read this blog is that you, H, add clarity to the ‘real market,’ the amazingly complex shadow market that has made the other markets that are actually connected to corporate and government finance, into a casino of derivatives markets composed of the afterthoughts we call stocks and bonds. In many ways the current market structure reminds me of modern physics. The things we touch and feel and use are made of atoms, an analog to stocks and bonds that supply capital to the economy’s machines. Now we find that underneath those atoms is an astonishingly complex web of sub-particles and forces that actually run the show. Atoms, like stocks and bonds, are almost passe in the grand scheme of things.

  3. I’ve read that Musk has a huge amount of very much in-the-money Tesla stock options that expire next year and he is likely to have a very large tax bill associated with these options (a CNBC article estimates a tax bill as high as $15 billion). As such, he was going to need to sell a large number of shares anyhow to pay this tax bill. And asking the Twitter universe if he should sell or not sell 10% of his shares was all for show …

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