5 ms·

Not OP but Tesla's stock is certainly overvalued(Musk said so himself). Their future depends on if they can scale without QA issues - so far even producing a fe

by otalp 9y ago

Not OP but Tesla's stock is certainly overvalued(Musk said so himself). Their future depends on if they can scale without QA issues - so far even producing a few hundred model 3s a week they seem to be struggling with defects and problems in the delivered cars. The one distinguishing factor is that they have terrific brand value because of Musk, and this could mean that consumers would want their cars despite all the troubles they have. I think this unusual level of brand value is the confounding factor that muddies predictions and is unquantifiable. Brand value makes consumers make non-rational decisions. If it was any other car company with Tesla's numbers you'd be crazy to bet on them succeeding. People who hear that say, Lexus are doing badly and have severe problems with their cars are going to go buy an Audi. People who want a Tesla so far are just waiting for a Tesla.

dsfyu404ed 9y ago
>People who hear that say, Lexus are doing badly and have severe problems with their cars are going to go buy an Audi. If you're buying something where a large part of the value is in the image/brand it's usually not fashionable to complain about it. When a S10 breaks it's GM's fault. When a Tacoma breaks the owner didn't treat it right. When a Kia breaks it's unreliable. When a BMW breaks that's just part of owning a BMW. Tesla has cultivated an image (or rabid bunch of fanboys, depending on your perspective) where you're expected to put up with shoddy build quality and less than prompt service as part of the ownership experience so Tesla gets a pass on those things.
NotSammyHagar 9y ago
Even if they succeed on the m3 they are overvalued. I have bought and sold it several times. I think they'll succeed, hard to see if they will justify their stock price because other car companies can slowly build reasonable evs. look at the bolt - it's a credible car. It apparently loses a lot of money, thats whey don't make enough to meet market demand (unlike other gm cars).

by otalp 9y ago

dsfyu404ed 9y ago

>People who hear that say, Lexus are doing badly and have severe problems with their cars are going to go buy an Audi. If you're buying something where a large part of the value is in the image/brand it's usually not fashionable to complain about it. When a S10 breaks it's GM's fault. When a Tacoma breaks the owner didn't treat it right. When a Kia breaks it's unreliable. When a BMW breaks that's just part of owning a BMW. Tesla has cultivated an image (or rabid bunch of fanboys, depending on your perspective) where you're expected to put up with shoddy build quality and less than prompt service as part of the ownership experience so Tesla gets a pass on those things.

NotSammyHagar 9y ago

Even if they succeed on the m3 they are overvalued. I have bought and sold it several times. I think they'll succeed, hard to see if they will justify their stock price because other car companies can slowly build reasonable evs. look at the bolt - it's a credible car. It apparently loses a lot of money, thats whey don't make enough to meet market demand (unlike other gm cars).