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 Good evening, I'm William D. Cohan.
Welcome back to Dry Powder. Each week, I receive feedback from readers and sources about Wall Street's biggest characters and concerns. Today I'm opening my notebook to address questions about Elon Musk's fire sale, Peloton's collapsing stock, and the artful, largely unreported financial considerations behind Larry Culp's plan to vivisect GE.
You can read a free preview of my latest reporting below, or sign up now to access the full story, delivered directly to your email.
Bill
 Regarding the most pressing questions on Wall Street and in my inbox. Each week, I receive feedback from readers and sources about Wall Street’s biggest characters and concerns. I’ll be engaging with some of those questions here—in addition to a few observations of my own.
Bill, do you think Elon will keep selling? And that the Tesla stock will remain steady?
He’s playing with house money, so it’s doubtful Elon Musk cares very much what happens to the stock price if he happens to sell some shares from time to time. He’s worth around $290 billion at the moment. And, let’s face it, Tesla is a meme stock, completely untethered from the company’s financial performance. If Tesla’s price action were the slightest bit correlated to its income statements, then as my friend Scott Galloway told me recently, one could expect Tesla stock to fall 80 percent or more “pretty crisply” given its momentum-driven, 16-fold increase over the past two years.
All of which is to say, I think Elon Musk could shoot someone on Fifth Avenue and it would have no effect on the Tesla stock price. He’ll be able to sell as much stock as he wants, as often as he wants, for as long as he wants, and he’ll still have all the money he could possibly want and much, much more. Now, as for the morons who bought Tesla stock after Elon’s November 6 tweet about selling stock, only to see the stock retreat (and who have now lost 10 percent of their money in a week), well I guess I do feel sorry for them. But by now, most people know, or should know, that Tesla is a confidence game...
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