I would like to get in on TSLA, I really do believe in them but they scare me. As a new investor I have a hard time understanding how TSLA can be worth 675$ a share with a P/E ration of 680+ but companies like GM, F, and Nissan trade between 10-60$ a share.... Can someone explain to a newbie like me how there is still growth potential in TSLA?
I can't show him where the value is at this price multiple. Why do you think I sold the company? lol! Tesla has some upside. I have no doubt, they will succeed. At this point, however, it has more downside. The current price has high volume and full self driving baked in. There is a bit of room for upward movement but not more than some other businesses. At this point, the wildcard is the rideshare network. Tesla rideshare and/or freightshare networks have potential to add $1T to the current valuation but I believe it is likely these units will be spun off early and not contribute significantly to the Tesla value proposition. So, I'm no help in recommending Tesla, despite continuing to be enamored with this company. By the way, Q2 production was 201K units. That's more than any prediction I read, including my own. This definitely indicates a second Model Y line is fully operational at Giga Shanghai.
The Tesla ride/freight share networks could be seen to be worth $1T one day. Tesla will have a hard time getting auto production value above 200B. Ever. There isn't much money in cars and it is wildly cash intensive. The Tesla supercharger network could easily grow into a $500B entity. Tesla energy storage could easil grow into a $400B entity, although it is currently worth less than two billion. So, it is possible Tesla could grow to twice the current valuation over the next 10 years. Stretch case will be $2T but I cite that only because Tasha Keeney has said this and I am in love with her. I don't see a $2T possibility but Tasha is far smarter than I am. So, the upside of owning Tesla is that you have better than even odds of doubling your money in the next decade. The downside of owning Tesla is the loss vectors are almost infinite and without bottom. To make matters worse, Tesla does not distribute money to the shareholders and won't for many years to come. I feel I have better value options so I got out of Tesla but I continue to love the company, love what they are doing, and believe in their ability to succeed.
Q2 deliveries are 8.17% above Q1 deliveries. Income growth will be a bit more than that. On the other hand, they are fitting out three major facilities with production equipment so I expect the quarter spend to outstrip the income gains. In other words, I speculate profit will be down from Q1. Production was up 12.61%, so this may be an opportunity for arbitrage. I expect Q3 numbers to start blowing people's hair back.
Thank you for your evaluation, it basically matched my own. I like TSLA as well but like you said, at this price point I feel the risk vs. reward is too great and that there are plenty of other companies that are still undervalued and present growth opportunity.
https://twitter.com/Quicktake/status/1412270838112473089 “Tesla in China seems to be having one problem after another.” The honeymoon Elon Musk once enjoyed in the world’s most populous nation is over. Can Tesla recover from all the bad press in China? @MattCampbell reports https://trib.al/3xxoWsU
I've been waiting for Tesla Energy Storage day. Alas, it does not seem to be on the horizon. I'm expecting them to announce a 48v DC dual UPS/transfer switch. They are going to need this for StarLink ground stations and it's hard to imagine Elon buying anything, from anyone. lol! I'm also expecting to see Tesla GridManager gain a higher profile, at some point. They have been working on it for years and it is turning into quite a product, as best I can tell.
A problem I see potentially with TSLA, and maybe someone can correct me, but if any one of these branches/ sectors of TSLA do take off and become large players wouldnt they be subject to Anti-Trust Laws and be broken up?
I highly doubt it, based on the Chinese government coming down on the last purveyors of anti-Tesla lies. It seems lore likely the work of far right alternate reality nut jobs.
By the way, we are seeing the same anti-Tesla smear campaign in Germany. They are even suing to block the permit process and delay production start. Tesla customers can see through lies and smears better than any other group of which I am aware. These jack wagons will eventually run out of energy and re-focus on climate change denial and right wing punditry.
When this was happening in the US, it was interesting how one or two people could present an opinion based on lies, smears, ignorance, etc. and a high ratio of financial news outlets would pick up these attacks, providing national amplification. This national echo chamber would invariably cause a stock price decline. The stock price went up, every quarterly earnings call, when Elon and JB would point out how vastly incorrect these comments are. This cycle happened at every EC for years. My two biggest Tesla buys immediately preceded an EC. At this time, my wife and I would like to express our gratitude to the lying jackwagons who have supplied these bold faced lies over the years. Thank you.
I own zero shares, however, Tesla is in my value charts and I will buy back in, when/if I see value. My first tranche of Tesla was acquired in 2006 when I picked up a lot of it at $36/share (price normalized to the split). I took the funds of a retirement buyout and put it all into Tesla. At the time, I was hanging out on another forum. I had been following Tesla since near the beginning and I posted about the purchase. I used to fill up their thread with blather, also. The response was somewhat not enthusiastic. In fact, I ended up receiving a threat of violence by private message, just for mentioning that I believe in Tesla and picked up a lot of shares. That's not specifically why I left that forum, but that mentality is. To be fair, there were and continue to be some very good people at that forum. In fact, there are a lot more people over there who think similar to how I do than there are here but I have enjoyed the change. Now that I think of it, I could share some good stories about things that have happened to me which have been distinctly advantageous.
@TomB16 good story, good change glad you are here w/ us really apreciate what you usually write and comment thank you
Technically it is nearing a death cross after getting rejected at $700. The LIT etf has been taking off without Tesla.
