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"There is more potential downside than upside, that's for sure." This may be true over very short time horizons. But if Tesla survives 50-100 years, is it not
by vibrato 10y ago
"There is more potential downside than upside, that's for sure."
This may be true over very short time horizons. But if Tesla survives 50-100 years, is it not realistic to think it could be valued at 5x - 10x current? That would be a 400% upside, versus 100% downside. I say this as a habitual short seller.(haven't traded TSLA)
- guelo 10y agoIf 400% over 50 years = 8%/year is the most optimistic scenario then it's not very exciting.
- ksherlock 10y agoand with compounding interest, it's only 5%/year.
- semi-extrinsic 10y agoTesla is currently valued higher than Subaru, Fiat Chrysler and Mazda; all successful car companies selling much more cars. With the exception of Volvo and Toyota, whose value includes much more than just the car companies (like heavy industry manufacturing, commercial vehicles, Toyote even owns 0.27% of Tesla), only a ~2x increase in valuation is realistic. If they become one of the biggest car companies in the world.
- erikpukinskis 10y agoThey're not just a car company, they're a battery company who happens to make cars.