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In fact, Michael Burry from the Big Short has been tweeting about this lately. It's actually more valuable the all WORLDWIDE auto makers combined, and sells <1%

by elamje 6y ago

In fact, Michael Burry from the Big Short has been tweeting about this lately. It's actually more valuable the all WORLDWIDE auto makers combined, and sells <1% of global volume.

newacct583 6y ago
Because the bet is that in 30 years, Tesla will still be here and the legacy companies will not, having failed to pivot to the emerging markets. Yours is the same logic that has been deployed against tech industry P/E ratios for decades. No, it doesn't make "sense" per the balance sheet. But it's clear what the bet is.
- est31 6y ago
  Some legacy companies will certainly fail the pivot, but I think it's wrong by the stock market to be so certain that they will collectively fail.
  - newacct583 6y ago
    Well, it doesn't bet that they'll "fail" exactly. It's simply betting that they aren't going to grow. The collective opinion of Wall Street is that the only value to owning Toyota or GM or Volkswagen stock is the immediate value: dividend payments, the value of liquidatable assets, etc... But with Tesla, the bet is that in 30 years that company is going to own most of the market all these existing firms do. That may be wrong, but like I said it's clear that this is the bet.
changoplatanero 6y ago
I’m pretty sure that Twitter account is not run by Michael burry
- adnzzzzZ 6y ago
  There are articles from "real institutions" saying it is him, for example: https://www.bloomberg.com/news/articles/2020-04-07/michael-burry-slams-virus-lockdowns-in-controversial-tweetstorm https://www.bloomberg.com/news/articles/2020-04-07/michael-b.... It wouldn't surprise me that it is him, he seems like a contrarian in nature (if the movie did his personality any justice) and what he's been saying this year is pretty in line with that.
- elamje 6y ago
  I follow the account and thought the same thing as you for a while. The name and picture are always changing, but then I saw several huge publications cite his account. It made me rethink that it was either a) him, b) he doesn’t care that someone is impersonating him and getting cited, or c) he has no idea about the account or any articles referring to it.

by elamje 6y ago

In fact, Michael Burry from the Big Short has been tweeting about this lately. It's actually more valuable the all WORLDWIDE auto makers combined, and sells <1% of global volume.

newacct583 6y ago

Because the bet is that in 30 years, Tesla will still be here and the legacy companies will not, having failed to pivot to the emerging markets. Yours is the same logic that has been deployed against tech industry P/E ratios for decades. No, it doesn't make "sense" per the balance sheet. But it's clear what the bet is.

est31 6y ago
Some legacy companies will certainly fail the pivot, but I think it's wrong by the stock market to be so certain that they will collectively fail.
- newacct583 6y ago
  Well, it doesn't bet that they'll "fail" exactly. It's simply betting that they aren't going to grow. The collective opinion of Wall Street is that the only value to owning Toyota or GM or Volkswagen stock is the immediate value: dividend payments, the value of liquidatable assets, etc... But with Tesla, the bet is that in 30 years that company is going to own most of the market all these existing firms do. That may be wrong, but like I said it's clear that this is the bet.

changoplatanero 6y ago

I’m pretty sure that Twitter account is not run by Michael burry

adnzzzzZ 6y ago
There are articles from "real institutions" saying it is him, for example: https://www.bloomberg.com/news/articles/2020-04-07/michael-burry-slams-virus-lockdowns-in-controversial-tweetstorm https://www.bloomberg.com/news/articles/2020-04-07/michael-b.... It wouldn't surprise me that it is him, he seems like a contrarian in nature (if the movie did his personality any justice) and what he's been saying this year is pretty in line with that.
elamje 6y ago
I follow the account and thought the same thing as you for a while. The name and picture are always changing, but then I saw several huge publications cite his account. It made me rethink that it was either a) him, b) he doesn’t care that someone is impersonating him and getting cited, or c) he has no idea about the account or any articles referring to it.