Tesla stock suffers biggest-ever drop
- Thread starter wdn
- Start date
The stock price must be related to sales of the product. Yes, market share counts. Has nothing to do with how cool or innovative they are (opinion) or how many Tesla fans there are who are not owners (also opinion). It's like saying if Apple had less than 2% market penetration in mobile phones, laptops, pads and all there other stuff where would you expect their stock price be? If Apple dropped from its current market share to less than 2% in every product segment, would you expect it's stock price to be unchanged? Of course not.
Another thought on the carbon credits. They are hundreds of millions of dollars of pure profit for tesla each quarter. But they also dont really matter that much. Why? Tesla has already built so many factories, charging stations, ect. They wont need to invest as much going forward. They can operate like amazon for years at a loss and still draw investment easily. The profit is far less important than F or GM who have endless pensions to pay and dividend expectations to shareholders.
Why? If this were the only criteria, why would the big investors be putting so much money into Tesla?
The big boys (Institutional Holders) own and drive TSLA price.
Apparently expectations are high.
Schwab rates TSLA an F for Valuation, which seems to be in accord with your thoughts based on sales, net income, assets, etc.
It rates it a C for Quality, which is related to recent financial performance among other things.
But Schwab gives it an A for Sentiment, which is expectation for future growth, especially as investors learn more about the company.
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Stock market pays today for what it thinks it will be in the future. They clearly think a lot of Tesla. Tesla is only about 50% institutional ownership tho. Not that its good or bad. One of my larger REIT holdings, MAC, is usually over 90% insti owned and its still very undervalued.
Makes sense it would be called that on many levels.
I completely get the sales and ratio argument and I myself bought in at 50 and sold out at 250 sensing tremendous challenges to the company.
Who really are the fools though?
The guys that made nothing because this company didn't fit a prior given formula? Montana skeptics clients missed out on huge growth.
Or the guys that made millions or billions because they saw something the others didn't?
Where do I collect my millions or billions?
Thanks a million Dave!
Can't blame a poor boy for trying...
I'll give you a theory ( that's all this is)
They may smell quick money because of politics ( the green element) and/or belief that the govt will keep them afloat ( like they tried to do with solar panels)
Right now, they are somewhere between Crazy Eddie and Enron with pockets stuffed full of OPM- at some point that's going to change.
Then we will see
IMO, if you don't feel good about a company and its products, you shouldn't be invested in it.
I feel really good about Tesla based on history and its products.
And I got tired of chickening out and watching money fly by. So I bought 100 shares...
The first few years TSLA returned about 25% YOY. Not bad for a newly public company.
2013 returned more than 300% YOY. You know the rest.
And our Model 3 is a blast; I will buy another 1 day.
New factories being built (in record time) and products coming out including vehicles and energy.
Tesla is building a 50+ Super Charger station with restaurant between the Bay Area and LA.
WW Supercharger Network
Your results may vary...
I feel really good about Tesla based on history and its products.
And I got tired of chickening out and watching money fly by. So I bought 100 shares...
The first few years TSLA returned about 25% YOY. Not bad for a newly public company.
2013 returned more than 300% YOY. You know the rest.
And our Model 3 is a blast; I will buy another 1 day.
New factories being built (in record time) and products coming out including vehicles and energy.
Tesla is building a 50+ Super Charger station with restaurant between the Bay Area and LA.
WW Supercharger Network
Your results may vary...
$407 to $455 today... Almost $50 spread! Closed @ $449, up $7.
Battery Day tomorrow. Battery density? Plaid mode S? Sub $100 per kW-hour? Project Roadrunner?
What about the Tesla killers?
There's a rumor that Tesla is on the verge of yet another record quarter for deliveries. Germany is up almost 450% YOY.
Who the heck knows what's gonna happen? That Elon is whack!
The roller coaster ride continues...
Battery Day tomorrow. Battery density? Plaid mode S? Sub $100 per kW-hour? Project Roadrunner?
What about the Tesla killers?
There's a rumor that Tesla is on the verge of yet another record quarter for deliveries. Germany is up almost 450% YOY.
Who the heck knows what's gonna happen? That Elon is whack!
The roller coaster ride continues...
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I agree that we will continue to see a roller coaster on valuation but am willing to bet that as of December 31st it will still be up very substantially from January 2nd 2020. I read that the Shanghai factory cost $1.6 billion. It was just shy of a year from groundbreaking until the first cars rolled off the assembly line. They just raised $5 billion. Granted, it will cost more and take longer to build more Gigafactories except for the rumored one in India which will supply that entire region. But the next two years will go by quickly and TSLA has nowhere to go but up. If Tesla succeeds in their plan to have fleets of robotaxi/ride sharing vehicles in service, those vehicles will be gathering data at an astronomical rate that will be used to develop their autonomous driving system. Tesla will be generating an income stream from selling insurance to their owners and from their solar & power wall systems. And licensing software to other manufacturers and licensing battery technology or selling the batteries provided they can make them fast enough to other manufacturers.
There is a good chance that Tesla will have if not a record breaking 3rd quarter, at least a very good one and a profitable one. And I think they will be added to the S&P 500 by the end of Q1 2021, maybe sooner.
They are so far ahead of everyone else that the others are going to have a very difficult time competing. Do they have the capital to spend to catch up ? Not looking good for them. Look at what those dopes at GM did that made the decision to dump all that money into Nikola. If I were on the Board of Directors I'd be giving them their walking papers and without a golden parachute.
I think a valuation of $1500 per share by 2022 is not beyond the realm of possibility. I have established a sell point for about 20% of my shares and will hold the other 80% for the next few years to see what happens.
There is a good chance that Tesla will have if not a record breaking 3rd quarter, at least a very good one and a profitable one. And I think they will be added to the S&P 500 by the end of Q1 2021, maybe sooner.
They are so far ahead of everyone else that the others are going to have a very difficult time competing. Do they have the capital to spend to catch up ? Not looking good for them. Look at what those dopes at GM did that made the decision to dump all that money into Nikola. If I were on the Board of Directors I'd be giving them their walking papers and without a golden parachute.
I think a valuation of $1500 per share by 2022 is not beyond the realm of possibility. I have established a sell point for about 20% of my shares and will hold the other 80% for the next few years to see what happens.
