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Yeah, but there are actually autonomous cabs rolling out to my metro, and Tesla didn't build them... So it won't be a monopoly. Which means you're right back t
by horsawlarway 2y ago
Yeah, but there are actually autonomous cabs rolling out to my metro, and Tesla didn't build them...
So it won't be a monopoly. Which means you're right back to a cutthroat, low margin business.
Personally... I'm generally a "buy the whole market" kind of investor. But I'm actively looking to exclude Tesla. It's shaping up to be a complete and total bust.
- revm 2y agoHow would you exclude Tesla?
- jcranmer 2y agoThere are probably ETFs that are something like "all of S&P except for Tesla".
- ryandrake 2y agoBuy a broad-market ETF, and then short the exact amount of TSLA in that ETF's holdings?
- janalsncm 2y agoI looked into it, you need to do something called “direct indexing” if you want to specifically exclude a stock. Here is one example, Wealthfront can also do it. https://www.schwab.com/direct-indexing https://www.schwab.com/direct-indexing
- arrosenberg 2y agoCalls on SPY, puts on Tesla.
- JumpCrisscross 2y agoYou're exposing yourself to tracking error every time the index rebalances. If you want to show it to the man, just go to a protest while buying a cheap index fund.
- arrosenberg 2y agoI don't personally care enough, I made my point years ago when I bought my EV from a different manufacturer.
- JumpCrisscross 2y agoNot super relevant. The point is using puts to hedge out Tesla is a bad way to buy the market ex Tesla.
- arrosenberg 2y agoIf you want to buy the market and bet against Tesla, it's actually a great way. It may not be the most profitable, but that's never been the point doing something out of protest or spite.
- JumpCrisscross 2y ago> If you want to buy the market and bet against Tesla, it's actually a great way Nope. Certainly not in the long term. You’re better off direct indexing. If you don’t have enough money to direct index, you’re wasting money.
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- arrosenberg 2y agoI'm not wasting any money, because I don't personally care enough to follow this strategy. Thanks for the info though.
- delichon 2y ago> Yeah, but there are actually autonomous cabs rolling out to my metro The economic difference is that a level 2 cab requires much higher remote labor costs than a level 3 cab to achieve the same productivity, almost by definition of "level 3". As long as a cab company has that advantage they can undercut the competition by price and still make a profit. That advantage is definitely not yet a given. It could even be achieved by open source models and go global for everyone at once. In that scenario Tesla still starts with a large advantage in cost per cab over everyone but BYD.
- JumpCrisscross 2y ago> Tesla still starts with a large advantage in cost per cab over everyone but BYD Waymo is way ahead of Tesla.
- itsoktocry 2y ago>In that scenario Tesla still starts with a large advantage in cost per cab over everyone but BYD. They literally don't have a cab. Waymo is driving people around right now.