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There was plenty of negativity before Cybertruck. It was the most shorted stock. People were betting on when it would go bankrupt. Etc etc.

taylodl 2y ago
You call it negativity I call it financial fundamentals. Tesla stock has been overvalued for quite some time and continues to be overvalued, even after the mass sell-off we've just witnessed. Obviously, we can quibble over what it means to be overvalued, but I'm a bit old-school and say a stock with a P/E ratio of 14 is at risk of being overvalued. Now, the thinking is if you're in a period of low interest rates or it's a high-growth stock then a P/E ratio above 14 may not be undesirable. But interest rates are increasing, and the sales figures clearly indicate Tesla is not a high-growth stock. I conclude their P/E is therefore too high and the stock is still overvalued. Is Tesla going to go bankrupt? No - not in any foreseeable future. Will Tesla take over Toyota or Volkswagen in sales volume? Not likely, but there are several automakers who are doing quite well without those sales volumes. Tesla is going to learn, if they want to continue to exist, to make products that people want. Steve Jobs could convince you that you needed something when it cost under $1,000. It's a lot more difficult to do the same when the price tag is $100,000.
- mgiannopoulos 2y ago
  Tesla sold 1.8 million cars last years, they do know how to make products that people like. And they don’t sell for 100K anymore but more like $40K
  - taylodl 2y ago
    > Tesla sold 1.8 million cars last years And yet that just barely puts them in the top 10 of automakers in terms of number of cars sold - yet their market capitalization was greater than all the automakers in the top 10 combined. Those are the financial fundamentals I'm talking about when I say Tesla's stock is overvalued. The "tech people" who wanted a Tesla have already bought a Tesla (or two). It remains to be seen as to whether Tesla will maintain their dominant lead over the other automakers in the EV segment as the market expands to mainstream buyers.
    - mgiannopoulos 2y ago
      Stock valuations are based on future growth. See valuations in the billions for AI startups.

taylodl 2y ago

You call it negativity I call it financial fundamentals. Tesla stock has been overvalued for quite some time and continues to be overvalued, even after the mass sell-off we've just witnessed. Obviously, we can quibble over what it means to be overvalued, but I'm a bit old-school and say a stock with a P/E ratio of 14 is at risk of being overvalued. Now, the thinking is if you're in a period of low interest rates or it's a high-growth stock then a P/E ratio above 14 may not be undesirable. But interest rates are increasing, and the sales figures clearly indicate Tesla is not a high-growth stock. I conclude their P/E is therefore too high and the stock is still overvalued. Is Tesla going to go bankrupt? No - not in any foreseeable future. Will Tesla take over Toyota or Volkswagen in sales volume? Not likely, but there are several automakers who are doing quite well without those sales volumes. Tesla is going to learn, if they want to continue to exist, to make products that people want. Steve Jobs could convince you that you needed something when it cost under $1,000. It's a lot more difficult to do the same when the price tag is $100,000.

mgiannopoulos 2y ago
Tesla sold 1.8 million cars last years, they do know how to make products that people like. And they don’t sell for 100K anymore but more like $40K
- taylodl 2y ago
  > Tesla sold 1.8 million cars last years And yet that just barely puts them in the top 10 of automakers in terms of number of cars sold - yet their market capitalization was greater than all the automakers in the top 10 combined. Those are the financial fundamentals I'm talking about when I say Tesla's stock is overvalued. The "tech people" who wanted a Tesla have already bought a Tesla (or two). It remains to be seen as to whether Tesla will maintain their dominant lead over the other automakers in the EV segment as the market expands to mainstream buyers.
  - mgiannopoulos 2y ago
    Stock valuations are based on future growth. See valuations in the billions for AI startups.