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Disclaimer: I have no idea how a stock is prised. Is the stock prise directly related to the revenue/losses of the company? If this is true, couldn't the losse

by tsenkov 13y ago

Disclaimer: I have no idea how a stock is prised. Is the stock prise directly related to the revenue/losses of the company? If this is true, couldn't the losses be explained by this: >"Production in the quarter significantly exceeded deliveries in order to fill the pipeline of vehicles in transit to Europe and provide cars for service and marketing uses." Probably by a long shot (considering so many uncertainties in my logic), but it seems to me that they simply loss money, because they needed to fill the stores in unexplored markets, which resulted in stock prise decline and not that significant one (as already pointed, the stock went up 460% just this year). Edit: 38M is roughly equal to 470 Model S cars on average of $81k. If their production cost is 50%, this means about a 1000 cars could make up for the losses. And when you include the Supercharger network (do they make any money of that? and how much does it cost to build these stations?) and shipping of all extra production (without an order) to Europe it kind of seems reasonable.

rjtavares 13y ago
> Is the stock prise directly related to the revenue/losses of the company? Yes. However, expectations are more important than past behaviour, especially in new businesses. People buying Tesla stock are guessing their growth/earnings trajectory, and if reality deviates from that they'll sell (simplifying here, obviously).
podperson 13y ago
Stock is priced like anything else: what people are willing to pay. In theory a stock represents a share of a business, and so its price is a bet on the lifetime return of the stock at the time of purchase -- if you pay $100 for a stock today, you expect the "net present value" of that stock to pan out to at least the net present value of $100 invested in something really safe (e.g. in treasuries... oh wait, hmm... gold, er ah no... in C-notes under your bed).

by tsenkov 13y ago

rjtavares 13y ago

> Is the stock prise directly related to the revenue/losses of the company? Yes. However, expectations are more important than past behaviour, especially in new businesses. People buying Tesla stock are guessing their growth/earnings trajectory, and if reality deviates from that they'll sell (simplifying here, obviously).

podperson 13y ago

Stock is priced like anything else: what people are willing to pay. In theory a stock represents a share of a business, and so its price is a bet on the lifetime return of the stock at the time of purchase -- if you pay $100 for a stock today, you expect the "net present value" of that stock to pan out to at least the net present value of $100 invested in something really safe (e.g. in treasuries... oh wait, hmm... gold, er ah no... in C-notes under your bed).