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Markets still seem to be pricing Tesla as a company that has large growth potential. Anyone have a reasonable case to make here for this being true?
by czhu12 2y ago
Markets still seem to be pricing Tesla as a company that has large growth potential. Anyone have a reasonable case to make here for this being true?
- nextworddev 2y agoHumanoid robots and self driving car deals. At least that’s why people are thinking
- deleted 2y ago[deleted]
- timeon 2y agoLot of stocks are not profit based at this point.
- bgnn 2y agoCEO controls the US government (corruption)
- gonzo41 2y agoFor retail players its sunk cost fallacy. For everyone else they are trying to manage their exit.
- legitster 2y agoAnyone who has tried taking a short position on Tesla in the past got squeezed terribly. So the number of short positions on the stock is inordinately small.
- jimnotgym 2y agoNo, and it is one of a number of high profile companies that could never sustain their growth. I think there are at least two reasons for the absurd valuation. 1) The growth in Western inequality has pushed more money into fewer hands. They are desperately short of assets to buy, so they crowd into certain assets, pushing the prices too high. 2) The Emperors new clothes effect. Nobody who has invested wants to pull out first
- nickthegreek 2y agoIt’s partially a meme stock propped up by true believers. Well true believers who have never had to be truly tested. The next 6 months of Tesla stock pricing will test their grit. Their stock rise hasn’t been tied to financial reality for a moment. Tbh though it has historically worked out for them but I don’t see the argument for continued investment today.
- JumpinJack_Cash 2y agoTesla can be seen as becoming the Saudi Aramco of the U.S. , an hybrid private-public company propped up by the largest military and economy in the world. Basically the argument for investing in ExxonMobil 1985-2015 but on steroids because of the access that the CEO has and the social media narrative building that wasn't there for Exxon to capitalize on back then
- bdangubic 2y agothe problem for Tesla is that if this is what they are they are not getting 30 years, 2026 is as far as that goes :)
- omnimus 2y agoLets hope you wont be surprised. Everybody thought that about Putin in begining too.
- Ekaros 2y agoStill don't explain the price. Aramco seems to have 10-20 P/E ratio (excluding 2020 demand drop in oil). Where as Tesla is at 80 now... I just don't think enough money can be pumped in Tesla to make current valuation sane. Without outright paying for those earnings by in essence gifting money.
- tim333 2y agoThey still make good cars and the AI seems quite close to working. The model Y is still the worlds best selling vehicle. They'd probably be doing well if their ceo hadn't gone off the rails a bit.
- omnimus 2y agoModel Y was best selling electric vehicle. Anyway Musk isnt interested in personal vehicle sales because that could never live up to the insane evaulation. He will have to push for some moonshot project that investors might believe could work. Its the robo taxis and likely government contracts for public transport, police and army.
- tim333 2y agoAs a potential investor I always saw the main value proposition as Tesla are the best at making modern cars so will take like 35% of the global market and be worth a lot. That's looking less plausible as Elon has moved to other things and BYD et al have stayed focused and are eating their lunch.