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> I am short $TSLA on the basis of comparative valuation only What are you comparing the valuation to? Other car companies? Revenue? I ask because when there a
by bonestamp2 6y ago
> I am short $TSLA on the basis of comparative valuation only
What are you comparing the valuation to? Other car companies? Revenue? I ask because when there are so many emotional investors in a stock like Tesla, I've found it hard to rationalize the price. For that reason, I'm nervous about going short or long for any length of time. That said, I've had a lot of success day trading the price action.
- sokoloff 6y agoI feel like there's a certain exuberance for the great things that Tesla (and SpaceX) have achieved. Much of that exuberance is well-justified by the delivery. It seems likely to me that continued excellence of execution is priced into the stock at these levels and that no company is that perfect, regardless of the size of the opportunity in front of them. I also find it somewhat telling that Tesla sold $5BB of $TSLA into the market in early Sept. That might suggest that they thought the near-term market conditions were as good as they were going to get for a while. This is (IMO) a wonderful company with an excessively premium market cap.
- duncanawoods 6y ago"Valuation isn't a short thesis" as they say. Totally fraudulent companies can trade for decades and price corrections don't happen without a trigger. IMHO only enter a short position when you have identified the cause of a correction and you know it is happening now.