32 ms·
You are being downvoted because your comment [reads] like it was written in bad faith. The price (although inflated imo) is representative of having some truly
by belval 6y ago
You are being downvoted because your comment [reads] like it was written in bad faith. The price (although inflated imo) is representative of having some truly new tech to offer. Batteries being one where they still beat the competition, but it's not hard to see that they've been leading the EV market by a mile.
Their self-driving tech while arguably not ready for driverless car is the most advanced that you can buy today.
They are lacking in assembly and manufacturing volume. Both are areas that could be improved with an older partner with more experience in manufacturing, which is why they are open to a merger.
- hakfoo 6y agoI wonder if the stock market likes it because it's a "purer" speculation than some other automakers. Tesla tracks one clear proposition: the future of personal transport is electric. If you buy the premise, it's one of the most precise bets you can make on it. In contrast, GM or Hyundai or Volkswagen are inherently hedged. If petrol drops to twelve cents per litre, they'll pivot back to V8 boats and Tesla goes bust. But that means they'll pay out less if the future is electric-- they wasted resources and time that could have been in retrospect better spent going whole hog on electric vehicles. I wouldn't be surprised if this is part of the reason firms like Nikola can still get market traction with way more vaporous fundamentals: they're also positioned as a pure bet on that proposition. (Disclaimer: long TSLA)
- 55873445216111 6y agoYes. It's called "Sum of the parts" valuation. Companies sometimes break up because the market values the separate pieces more than the whole. https://corporatefinanceinstitute.com/resources/knowledge/valuation/sum-of-the-parts-sotp-valuation/ https://corporatefinanceinstitute.com/resources/knowledge/va...