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Wall Street really doesn't like companies doing things with a promised payoff beyond the present fiscal year. That's what they're doing at TSLA. Sure, a lot o

Wall Street really doesn't like companies doing things with a promised payoff beyond the present fiscal year. That's what they're doing at TSLA. Sure, a lot of it ("Gigafactories!!!!!") is ego driven, not economy-of-scale driven. But they will need the manufacturing capacity as electric storage becomes more common. Don't forget, TSLA is an energy company. Their present products have wheels because rich dopes like me will spend money on them, and because there's some low-hanging fruit in transportation energy in this decade (not this fiscal year). But long term their products are going to be as ubiquitous as household electric meters and just as boring. If I had a bunch of shares of TSLA and a kid entering college, I might sell some of them at the present price. But that doesn't make them a bad investment.

JumpCrisscross 10y ago
> Wall Street really doesn't like companies doing things with a promised payoff beyond the present fiscal year The same Wall Street valuing Tesla at $40bn [1]? Tesla is a loss-making company valued at almost 6 times revenues on the promise of profits in many years' time. [1] https://www.google.com/finance?q=tsla&ei=yVy0WNmON8bfsgHYiImAAw https://www.google.com/finance?q=tsla&ei=yVy0WNmON8bfsgHYiIm...
idiot_stick 10y ago
>Don't forget, TSLA is an energy company. Boy are people going to have to do some explaining if Tesla winds down Solar City, which I see as a major possibility. >But long term their products are going to be as ubiquitous as household electric meters and just as boring. I'd love to know how people are so confident that it's going to be Tesla that wins this. This isn't Tesla vs GM, Tesla vs Toyota, Tesla vs Ford; it's Tesla vs Everyone. If you were betting, you would really bet on Tesla vs one of about 15 other, huge companies in pool? That seems insane to me.
- djrogers 10y ago
  > if Tesla winds down Solar City Why would they wind down a profitable financing arm of the company? Auto makers get a huge chunk of their revenue from financing, as do solar lease companies. Lots of synergy there, and just about zero downside to continuing Solar City operations.

JumpCrisscross 10y ago

> Wall Street really doesn't like companies doing things with a promised payoff beyond the present fiscal year The same Wall Street valuing Tesla at $40bn [1]? Tesla is a loss-making company valued at almost 6 times revenues on the promise of profits in many years' time. [1] https://www.google.com/finance?q=tsla&ei=yVy0WNmON8bfsgHYiImAAw https://www.google.com/finance?q=tsla&ei=yVy0WNmON8bfsgHYiIm...

idiot_stick 10y ago

>Don't forget, TSLA is an energy company. Boy are people going to have to do some explaining if Tesla winds down Solar City, which I see as a major possibility. >But long term their products are going to be as ubiquitous as household electric meters and just as boring. I'd love to know how people are so confident that it's going to be Tesla that wins this. This isn't Tesla vs GM, Tesla vs Toyota, Tesla vs Ford; it's Tesla vs Everyone. If you were betting, you would really bet on Tesla vs one of about 15 other, huge companies in pool? That seems insane to me.

djrogers 10y ago
> if Tesla winds down Solar City Why would they wind down a profitable financing arm of the company? Auto makers get a huge chunk of their revenue from financing, as do solar lease companies. Lots of synergy there, and just about zero downside to continuing Solar City operations.