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The same can be said about Coinbase and look what's happening. Let's just say buyer beware when it comes to meme companies.
by fibers 4y ago
The same can be said about Coinbase and look what's happening. Let's just say buyer beware when it comes to meme companies.
- cmrdporcupine 4y agoThe thing is, Tesla isn't a Coinbase. Tesla is now a giant manufacturing company that makes a lot of things, brings in revenue, and has some really solid engineering. I don't like their cars from a UX standpoint, but the engineering in their motors and battery packs are solid good products. Move fast and break things might have been fine in the early days. Seems to me like the company needs to 'grow up' and demonstrate responsibility to shareholders and customers, and to do that it likely involves significantly sidelining Musk, who clearly behaves very erratically.
- Isinlor 4y agoThe idea of shareholders sidelining Musk is crazy. Shareholders paid him tens of billions to stay after he wanted to step down as CEO after Model 3 push. https://www.theguardian.com/business/2022/apr/21/elon-musk-stands-to-collect-23bn-bonus-as-tesla-surges-ahead https://www.theguardian.com/business/2022/apr/21/elon-musk-s... Elon Musk is golden goose for Tesla shareholders.
- bitwize 4y agoThe fact remains that Musk is the techbro Kanye West, and shareholders should sideline him.
- jethro_tell 4y agoThey won't because it's a meme stock. There's no way they should be the largest us auto maker. People are or have bought Tesla stock because they like Elon. There's not that much value in the company.
- riffraff 4y agoanyone who's not already reading Matt Levine should look up the "Elon Markets Hypothesis", which states that markets in a meme period value things depending on their closeness to Musk. It's been proven over and over! (not really)
- jethro_tell 4y agoDo love some Matt Levine
- _ea1k 4y agoTBH, that's just as much a testament to how pessimistic investors are about other US automakers as it is to how positive they are on Tesla/Musk. F and GM are massively undervalued unless you have really big doubts about their future.
- NoGravitas 4y agoI don't know about Ford, but GM is pretty well positioned to eat the US electric car market by producing more affordable electric cars (like Hyundai and Kia are doing, but mostly not yet in the US market). They could well fail to do so, but if they do, it would be an own goal.
- _ea1k 4y agoI think that's true for both Ford and GM to varying degrees. They have solid cash flow and existing factories that could be retooled, as well as the critical supplier relationships that are needed. But so far the results haven't been spectactular. Their goals for 2025 look like Tesla's goals for next year. That could change, though. Ford in particular has been making a lot of solid moves recently, and unlike GM there seems to be more movement than talk.
- jethro_tell 4y agoTo be fair, tesla's goals is kinda a moving target. How's that auto driving and the truck coming along?
- Isinlor 4y agoFind me another person that has his expertise in business, finances, marketing, mass manufacturing and aerospace industry. Find me another car executive that would have been bold enough to do something like Tesla Giga Castings before Elon decided to go for it. There are 4 entities to date that delivered people to Earth orbit: - Russia - USA - China - SpaceX There is only one entity that made rocket reuability profitable: SpaceX There is no person alive with better track record on delivering things that were believed by experts to be impossible.
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- gamblor956 4y agoGwynne Shotwell is the reason SpaceX is successful today, and generally, every time SpaceX has an unexpected failure rather than a success, it's because Musk showed up to the facilities and started making silly demands.
- Isinlor 4y agoDid I miss the part where Gwynne Shotwell was CEO and CTO at SpaceX? Or the part where she put all her money into the company? Shotwell is absolutely awesome, but she did not came up with the initial capital or the idea of rocket reusability and Mars settlement. She did not convince Tom Muller to join SpaceX etc. etc. The fact that Elon noticed Shotwell and gave her COO position is an example of excellent leadership skills from Musk. For contrast, Jeff Bezos and Blue Origin is an excellent example of bad leadership. Boeing is also an excellent example of bad leadership.
- taylodl 4y agoThis is the transition most startups fail to make. It's easy to be reckless when you're small, it gets much harder to do that when you get big.
- kylecordes 4y agoI agree with the spirit of this; but… This specific pattern, switching suddenly from "thousands of open positions" to “freeze and maybe layoffs” is typical for large large, mature, professionally managed companies.
- fnordpiglet 4y agoBut not because the CEO fired off an email based on his gut feeling about the economy. That’s wacky.
- JumpCrisscross 4y ago> not because the CEO fired off an email based on his gut feeling about the economy. That’s wacky. Elon's been off his rocker the last couple weeks. But this is just honesty. At the end of the day, this is the CEO's job. Some dress it up with more corporate speak. Others, like Elon, are more direct.
- sokoloff 4y agoweeks? I have a ton of respect for what he's accomplished, but from my perspective, I think he's been pretty chaotic in communications for years.
- JumpCrisscross 4y ago> he's been pretty chaotic in communications for years True. But he was less impulsive in his actions. The Twitter acquisition is a boondoggle. He could have just tweeted about it.
- marvin 4y agoMusk was a hair's breadth away from taking the SEC "420 funding secured" case to court, and spending who knows how much political goodwill, attention and effort towards that for months or years, instead of building the world's most interesting car company. During the most critical months of Tesla's history. He was convinced he was right and unwilling to let the thing disappear in a settlement. That was in 2018, four years ago. IIRC, only a conversation with Mark Cuban concerning the distraction of a lawsuit convinced him otherwise. Oh, and this was immediately after the Thailand cave diver pedo fiasco, and immediately before the Joe Rogan marijuana controversy. Two years before this, in 2016, Tesla bought the unprofitable SolarCity at a price that's truly ridiculous considering Tesla's share price today. I hardly think they've made more than a token profit in the eight years since. The thing seemed like a spur-of-the-moment decision. I don't think we're seeing a difference of magnitude in Musk's impulsive big decisions. Pretty sure they're strongly correlated with the personality traits that's given us the successes of SpaceX and Tesla already. I think everyone should just lean back, relax and enjoy the drama if that's what they're into. Or read a good book otherwise, and check back on the progress of Musk's companies in five years. Also need to point out that the Twitter purchase hasn't closed yet. Musk pulling out of that at the last moment would not be very unexpected.
- pfraze 4y agoThe EV market is becoming extremely competitive. Not only are they not going to be the only game in town, they probably won’t have the best product. Tesla’s valuation has to come back from the moon at some point.
- NoGravitas 4y agoYeah. Tesla knows how to make motors and battery packs, but they don't really know how to make cars. Established automakers are liable to eat their lunch once they catch up technologically. In fact, they don't even have to catch up; just be good enough.
- formerkrogemp 4y agoTesla's valuation was over 100x earnings yesterday. They had a P/E ratio of over 200x not too long ago. They are making solid products mostly, but I doubt you couldn't lump them in with "meme stocks" considering their volatility and average shareholder.