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I'd argue the "it's a tech stock" vs "It's a car stock" is more an investor sentiment thing, with no hard rules for Tesla. I also think aggregate investor sent
by Andaith 4y ago
I'd argue the "it's a tech stock" vs "It's a car stock" is more an investor sentiment thing, with no hard rules for Tesla.
I also think aggregate investor sentiment has treated TSLA as more of a tech company in the past.
Where TSLA sits on the Car/Tech spectrum seems to me to be changing as a result of a few things:
1. Failures of self driving.
2. More traditional car companies going electric.
3. EV no longer seems like such a disruptive technology.
It's an interesting change because investor expectations of the stock are going to change as well.
My gut feeling is that those changing expectations will hurt TSLA stock even more because comparing TSLA to other car companies on traditional metrics for car company success(Volume, defects per vehicle, etc) is going to be bad for TSLA.
- sidibe 4y agoI agree with your gut feeling, mainly because even after a 50% drop it is still worth way more than the next few car companies combined while there's a fraction of the sales. Until recently there's been a strong belief that Tesla is permanently only supply constrained and as they get more factories online they will always be able to sell everything they make at huge margins. I think the recent selloff is a result of people questioning that as Musk alienates future customers and other car companies embrace BEVs. There's still a very long way to go for Tesla to be priced like it's competitors, but I that will happen eventually.