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Those companies dragged their feet for 20 years when we all knew the climate was changing drastically. Tesla is still the only top car company to take climate c
by WhompingWindows 6y ago
Those companies dragged their feet for 20 years when we all knew the climate was changing drastically. Tesla is still the only top car company to take climate change as seriously as scientists say we need to (i.e. stop making ICEs now). That's why TSLA is valued so highly: there are incredibly important reasons that we need BEV that most governments haven't accepted yet.
Some people disliked Tesla's recent profitable quarters because they used green credits from Europe to make a fraction of their profit. Why is that a downside? Every industry has huge governmental incentives, that's nothing new.
The Europeans, who actually legislate based on science and reality, are supporting BEVs (Tesla) and taxing ICE makers who have no green options(Fiat-Chrysler), meanwhile the US has massive fossil fuel subsidies which help every ICE company. Isn't it rational for STEM-savvy investors to look at this massively misaligned governmental policy regime and predict future change based on sound science?
Tesla simply looked at the science and made a prediction on BEV demand, a prediction no other car company did (in fact, they fought to bury EV's internally in some cases), and now they're all behind on the future technology. Stock investors are tech-savvy, they want a technological car company; this is a "story" stock, plain and simple.
- SketchySeaBeast 6y ago> That's why it's valued so highly I agree that it's playing a bit into the valuation, but it seems to be momentum and cult of personality as well. Hard to justify a >1000 P/E just based upon environmental impact.
- itsoktocry 6y ago>Some people disliked Tesla's recent profitable quarters because they used green credits from Europe to make a fraction of their profit. Why is that a downside? Every industry has huge governmental incentives, that's nothing new. It's not about "disliking" the profits. The incentives are good. It's people saying, "Tesla is profitable!", when all of the tiny profits come from one time charges. >The Europeans, who actually legislate based on science and reality, are supporting BEVs (Tesla) Did you know Tesla sales are down over most of Europe, as the "ICE companies" put out competitive vehicles?