Facebook will change company name to Meta

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Whitney Tilson’s email to investors discussing Facebook, Inc. (NASDAQ: FB) to change the company’s name to Meta; comments from readers on Facebook; Tesla Inc (NASDAQ: TSLA) – on the road to a $ 10,000 billion business and beyond.

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Facebook will change company name to Meta

1) I guess if, like Facebook (FB), I had behaved badly for years, hurting people in search of growth and personal enrichment, and it all became common knowledge, tainting my name, I would think about changing it as well … Facebook is going to change the name of the company to Meta in Focus on Metaverse.

That said, what I really hope I would do is change my ways and fix the underlying issues, rather than trying to put lipstick on a pig with a name change!

Facebook’s tone deafness continues to baffle me. Just read CEO Mark Zuckerberg’s comments at the start of the earnings call earlier this week (transcript here). Here is what I wrote to a friend about it:

It’s consistent with what he posted a few weeks ago, which I responded to in my daily email the next day. Totally lame and deaf. No recognition that there is a problem and that Facebook needs to do more.

Charlie Munger always says, “Show me the incentives and I’ll show you the behavior.” I don’t think Zuckerberg meant to do evil, but he always chose growth (and therefore his wealth) over security.

After my friend replied that I make it so simple, I replied, “No, things are VERY complex. But the overall picture is clear to me …”

Reader comments on Facebook

2) Speaking of Facebook, I received a number of emails in response to my October 13 daily about more and more Americans descending from rabbit holes, thanks in part to the social media giant and to his peers:

  • “Wait Whitney. You’re on the right side of the story and doing meaningful work.” – The J.
  • “Whitey, unfortunately your analysis of that madwoman’s letter is correct. We are in terrible trouble in this country right now, and I mourn it. Our democracy is really in danger.” – Sherwin R.
  • “The 2020 election was stolen. Zuckerberg helped make it happen with half a billion dollars. Democrats desperately wanted to install some insane shit named Joe Biden. If you want to ignore that fact, you’ve got a problem.

“If you think George Soros is a hero, you are wrong. He is a financial terrorist and his Open Society Foundation was created to cause destruction and disruption so that he could make over billions by bypassing them. markets.

“Take advantage of paying for millions of illegal invaders and be prepared for the next terrorist attack. Afghanistan was an American defeat. It was the biggest military and political blunder in American history. Are you ignorant enough to believe in concealment with a mountain of LIES. “- Jean B.

  • “Whitney, I have to break my usual resolution to never respond to emails. This change is due to your transparency today.

“I couldn’t agree more with Mark D – especially your ever-compassionate take on life and investing.

“And I’m appalled by your second commenter’s rant, though not surprised. When you drink deeply from a spurt of lies as she describes what she is doing, it numbs common sense and the prospect of reality. .I wish she had created such a miserable environment for her life. And of course, she thinks that only she has the truth.

“I worry about our country and the threat to our democracy.

“A word about me: I am almost 80 years old, I am a retired Baptist pastor; my wife is a retired social worker. I remain committed to a group of volunteers seeking to create inclusive communities. intend to invest the funds we have saved to always live according to our income, and I am now shocked to find that I am rich with a wealth of several millions.

“Once again, thank you for your transparent values. It is obvious that you received excellent parenting early on and excellent education along the way. Please continue your work.” – Robert W.

  • “Hello Whitney, I just wonder if you realize how biased you are when you hand-select a reader’s most outrageous far-right comments and then seemingly compare all the Tories to QAnon supporters.

“I am a conservative who is truly horrified by the politics of the day. I really cannot understand how a believer in capitalism can turn a blind eye to what happened to the Democratic / Socialist Party and the aligned media.

“The leftist technique of equating all conservatives with QAnon and white supremacists is quite apparent in the media, and unfortunately, in your daily emails. As is so often the case, I guess you are not. not at all aware of this bias and that you probably group me together with the full work you chose to publish.

“All of that being said, I will continue to eliminate the biases to pick up your many financial highlights.” – André S.

To the last one, I replied:

Thanks for the feedback, André.

I try to be balanced and would be happy to post an email sent to me from someone on the far left – but I haven’t received one.

Better,

Whitney

Tesla – On the Road to a $ 10,000 Billion Business and Beyond

3) Shares of Tesla (TSLA) topped $ 1,000 per share, making the company the sixth in history to exceed a market cap of $ 1,000 billion. It’s really amazing …

I have owned the first five – Apple (AAPL), Amazon (AMZN), Alphabet (GOOGL), Microsoft (MSFT) and Facebook – and I deeply regret it. always own them all. As I have said many times before, my sales of these behemoths were among the biggest mistakes of my investing career.

But I don’t feel the same about Tesla.

Of course there are times when I think back to my many warnings over the years to my short-selling friends not to sell the stock short and I wonder, “How hard would it have been to go long?” ? “

But looking back, it’s still 20/20 – and Tesla’s stock has always been based more on “history” than fundamentals, so I’m trying not to beat myself up too much …

Most of the time I sit with a bowl of popcorn and watch the amazing spectacle that this business and stock is – it’s so entertaining and educational!

I also continue to share my thoughts once or twice a week with my Tesla mailing list (to join, just send a blank email to: [email protected]).

Here is the last email I sent:

Tim Davies of Australia’s $ 100 million tech fund Holon Global Investments recently released that 144-page bullish report, Tesla – On Track To A $ 10,000 Billion Business And Beyond. (He also posted a video here.)

I asked my analyst Kevin DeCamp (who has now earned over 150 times his money on TSLA!) to take a look and here’s what he sent me:

I’ve seen a lot of this data and analysis before, but it’s definitely worth reading at least the summary and watching the video, which is compelling.

The projections and the title he chooses are clearly eye-catching (why not a Cathie Wood with a current value of $ 3.369 and a goal of $ 10 trillion!), But it’s a good look for understand what is really going on in the automotive industry, especially the challenges that traditional automakers face in transitioning to electric vehicles [electric vehicles].

It should be noted that it emphasizes Tesla’s impressive profitability while producing at a much smaller scale than traditional OEMs. [original equipment manufacturers] (comparing Tesla’s electric vehicles to the legacy ICE [internal combustion engine] production numbers). This will continue to improve as Tesla grows on average by around 50% and its revenue mix continues to shift more towards software.

Tesla said third quarter gross margins of 28.8% excluding regulatory credits while dealing with supply chain issues and producing cars well below capacity. As I said before, the myth that Tesla can’t make a profit without regulatory credits will continue to slowly die off. It is on track to generate margins comparable to those of Apple with a much larger Total Addressable Market (“TAM”).

I’m not convinced by its bullish developing market projections, although that is something to consider.

Best regards,

Whitney

Updated

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