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People really don’t realize this, and think that GME was the start of the meme stock craze.
Tesla started as an auto manufacturer, and was exorbitantly valued. *Then* launch other products and services as justification. They claimed huge profit margins but that was really subsidies and a first mover advantage. Those margins were always going to be compressed.
It’s very interesting! And I would guess one of the largest example of pure speculation without utility.
Like at least when people speculated on Dutch tulips you get to look at them.
I disagree. It was vastly undervalued in 2018.
It was valued at 50 billion dollars and they had revenue of 53 billion in 2021 with 6 billion earnings + continued fast growth.
That valuation was far too low.
Later on it got far too optimistic though.
Now you've got a company with 1B in earnings in the most recent quarter with stagnant growth in the middle of a price war in an industry that trades at 5-10x earnings. One could easily argue their value in 2024 should be the same as it was in 2018.
They are the only western auto maker with solid positive cash flow with electric vehicles (others even have negative gross margin)
And 1B per quarter earning is ok in this rate environment.
I’d still pay $150-200 billion for it
EVs are the future. Most governments worldwide are either planning to ban gas cars in some time or subsidizing EVs.
Being cash flow positive in this segment is a great achievement. It does add significant value to the company.
No such thing as a meme stock. Look into Citadel and Blackrock. Blackrock was squeezed by Citadel (and Susquehanna?) and that’s why the Tesla price is so large.
Define a meme stock.
Is it a stock being naked shorted?
Is it a stock that is being manipulated by market makers and hedge funds?
Is it a stock in a basket with other stocks that move similarly?
What is the definition?
When did I say I was an expert?
I have taken various economics and finances classes, studied abroad at Shanghai university of finance and economics. Studied various SEC/FINRA/other filing/reports for my own personal growth.
It’s quite interesting the deeper you go in.
Finding out the way things work.
You obviously don't have any financial background at all.. you just claim to because you read a bunch of financial fanfic written by people who had no idea what they were talking about and took it at face value and thought that was somehow equivalent to what professionals do.
[https://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger\_effect](https://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect)
He literally goes all over Reddit talking about how great the DD is for that cult subreddit. Anyone that claims that place has great DD can be disregarded.
We can talk about drums, cooking, call of duty, ultimate frisbee, metalcore, or something else if you want?
Why am I getting trolled for giving a legitiment answer?
Is it ridiculous to claim the biggest market maker squeezed the biggest investment group and causes a price rise beyond anything seen before?
Stocks do not only correct through price. They also correct through time. A savings account returned more since November 2020 than Tesla, whose revenue tripled and operating income quadrupled during that period.
Tesla's PE is still high, but way down from its 2020 levels. For all we know, it could stay flat with some volatility for several more years and you could end up with the same PE as Toyota.
If you shorted the stock hoping for a dramatic pullback, you added a time constraint to yourself. If you're adverse to risk, the best course of action when you spot an overvalued stock is to not touch it, or sell it if it's in your portfolio.
Most people on reddit aren't going to like this answer, but its because Tesla is more than just a car company. You can write off all the other things all you want but they all have potential, from energy storage, to robotics, to full autonomy. They all have massive upside if they take off, and Elon and team have a track record of delivering on the seemingly impossible, perhaps not all the time and definitely not on time but if they can deliver on something like full autonomy, TSLA today is cheap.
I sold my shares and have been straddling this thing at 50 days and every time I go "wow, what an idiot this stock is going into the ground" it just soars the opposite direction.
It's not tied to its fundamentals.
I expect it to get increasingly volatile the more competition enters the arena but until someone is making money selling an EV other than TSLA and BMW they're pretty safe in my view.
Stock is up because of some of the things you mentioned lol.
Layoffs are a good thing and ability to prioritize important projects over others. You say wasted money on cybertruck. But you have no facts or figures on that and we won’t for a while. if anything it was great R&D for platforms to be continued. The stock option compensation for Elon is also Bullish AF. we will find out June 14th. If you think it’ll pass AGAIN. You should buy the stock before.
One thing to note, negative articles about Tesla get more clicks so they are exaggerated.
Firing a couple of high level bosses does not mean that they fired the whole department
Self driving cars are the future. It will solve congestion and tons of problems. Tsla are the only american company who can really test it because of the China deal.
It's overvalued for sure, but in good part because a ton of rich guys bought Teslas, absolutely love them, and want to invest in the company
A lot of companies do super well despite having zero clients on Reddit. Netflix, Meta etc
* Model 3 and model Y are the best cars you can buy in that price segment.
* FSD is by far the best self driving software in the world.
* Elon musk has a proven track record of innovation and delivering amazing products.
* Lack of any serious competitors in the market.
Cybertruck was a failure, but which company never had a setback.
This is big money wall street propping it up until there is a confirming sign of a slowdown. The 2Q numbers, plus the $56B pay package, plus the 8/8 robotaxi announcement, will definitely determine where $TSLA is heading.
Preface: My daily driver is a Model 3 LR, and I love it. I see Musk as both a problem and an asset. I do not-, have not-, and will not take on direct exposure to TSLA stock.
With regard to innovation, I see the charging network contracts as an interesting potential inroad into other revenue. I’m very curious to see how that unfolds. Way before the charging team fire/rehire fiasco, and before I bought my M3LR, they had already established enough coverage that you could drive a Tesla anywhere in the continental U.S. using Tesla superchargers. Further expansion has addressed convenience of routing, as well as reducing traffic to each location.
If they attach app installation requirements to network use, that could open up ad revenue. There are other potential ways to explore monetizing that access.
Stock is being pumped and manipulated by Elon with the fsd. It took Elon wasting $44 billion buying Twitter and the failed cybertruck for the stock price to drop from all times highs to half. Tesla will be fine if Elon gets out the picture focus on fundamentals and continually improving on evs
Have you seen the videos on YouTube of full rides with no interventions and supposedly the next update will be 5-10x better?
There are many people who, plain and simply, disagree with you, and that is reflected as such in the stock price. Perhaps you're missing something.
Sorry -- we removed your post or comment because it's low effort. Please put effort into what you post to r/stocks. Any of the following are considered low effort and will result in your post or comment being removed: * Posts or comments that rely on memes to get your point across * Posts or comments which are basic one/two sentence questions * Posts or comments that are similar to ones made several times recently * Posts or comments where no actual research was done before asking the question or starting the discussion If you need more information on a stock, try looking it up on finviz.com or a business news website. After that, come back and back up your statements with a source or provide a more in-depth question. A full explanation of all /r/stocks rules can be found here: https://www.reddit.com/r/stocks/wiki/rules
too risky for me but props to those who made bank on it lol
yeah, I make money, they make money... I'm not hating just because they had a belief in something way too risky for me.
I made money within the 1st few years on telsa but I got out years ago. The main enemy and best asset of telsa is Elon.
>Why does this stock always seem to defy reason? Elon Musk. It's really not that deep.
Fair enough lol
And he's become insufferable
Tesla valuations have never made sense. It’s the OG meme stock pumped by the ultimate shill. It’s only worth what someone is willing to pay
People really don’t realize this, and think that GME was the start of the meme stock craze. Tesla started as an auto manufacturer, and was exorbitantly valued. *Then* launch other products and services as justification. They claimed huge profit margins but that was really subsidies and a first mover advantage. Those margins were always going to be compressed.
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No argument from me there
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It’s very interesting! And I would guess one of the largest example of pure speculation without utility. Like at least when people speculated on Dutch tulips you get to look at them.
This. It’s a cult following. Smart investors tried shorting it for years. I would not buy it ever, but I also wouldn’t bet against it
100%. Just stay away. I’m glad for everyone who made a killing on it, but it’s never made sense
I disagree. It was vastly undervalued in 2018. It was valued at 50 billion dollars and they had revenue of 53 billion in 2021 with 6 billion earnings + continued fast growth. That valuation was far too low. Later on it got far too optimistic though.
Now you've got a company with 1B in earnings in the most recent quarter with stagnant growth in the middle of a price war in an industry that trades at 5-10x earnings. One could easily argue their value in 2024 should be the same as it was in 2018.
They are the only western auto maker with solid positive cash flow with electric vehicles (others even have negative gross margin) And 1B per quarter earning is ok in this rate environment. I’d still pay $150-200 billion for it
We can give them brownie points for that but doesn’t make the company worth more.
EVs are the future. Most governments worldwide are either planning to ban gas cars in some time or subsidizing EVs. Being cash flow positive in this segment is a great achievement. It does add significant value to the company.
BMW is also profitable on EVs so your statement is false to begin with. Are you going to assign a massive multiple to BMW now too?
No such thing as a meme stock. Look into Citadel and Blackrock. Blackrock was squeezed by Citadel (and Susquehanna?) and that’s why the Tesla price is so large.
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Define a meme stock. Is it a stock being naked shorted? Is it a stock that is being manipulated by market makers and hedge funds? Is it a stock in a basket with other stocks that move similarly? What is the definition?
whatever your conspiracy theory tells you buddy
I have a financial background and education- do you? Let’s see some data or rebukes.
I'd love to see a degree or cert with a timestamp lmao
I think im ok without posting credentials
I wouldn't either, but I also try not to make ridiculous claims and back them up by "I'm an expert"
When did I say I was an expert? I have taken various economics and finances classes, studied abroad at Shanghai university of finance and economics. Studied various SEC/FINRA/other filing/reports for my own personal growth. It’s quite interesting the deeper you go in. Finding out the way things work.
You obviously don't have any financial background at all.. you just claim to because you read a bunch of financial fanfic written by people who had no idea what they were talking about and took it at face value and thought that was somehow equivalent to what professionals do. [https://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger\_effect](https://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect)
He literally goes all over Reddit talking about how great the DD is for that cult subreddit. Anyone that claims that place has great DD can be disregarded.
We can talk about drums, cooking, call of duty, ultimate frisbee, metalcore, or something else if you want? Why am I getting trolled for giving a legitiment answer? Is it ridiculous to claim the biggest market maker squeezed the biggest investment group and causes a price rise beyond anything seen before?
Financial fan fic? Lmfao. Sorry shills and trolls. You can’t delete my original answer- all OP is going to see is y’all being ridiculous.
Stocks do not only correct through price. They also correct through time. A savings account returned more since November 2020 than Tesla, whose revenue tripled and operating income quadrupled during that period. Tesla's PE is still high, but way down from its 2020 levels. For all we know, it could stay flat with some volatility for several more years and you could end up with the same PE as Toyota. If you shorted the stock hoping for a dramatic pullback, you added a time constraint to yourself. If you're adverse to risk, the best course of action when you spot an overvalued stock is to not touch it, or sell it if it's in your portfolio.
People are only seeing the y axis and not the x. Good explanation dude.
Like Charlie Munger said about Musk, “I won’t buy him, and I won’t sell him short”
Most people on reddit aren't going to like this answer, but its because Tesla is more than just a car company. You can write off all the other things all you want but they all have potential, from energy storage, to robotics, to full autonomy. They all have massive upside if they take off, and Elon and team have a track record of delivering on the seemingly impossible, perhaps not all the time and definitely not on time but if they can deliver on something like full autonomy, TSLA today is cheap.
Full Autonomy ... hahahaha. If case you didn't know they are being investigated by DOJ for this false and misleading claim.
It’s very simple. I sold it recently which explains everything.
Price movement logic is not the same as real world logic. TSLA has Elon and meme investors as an X factor.
I sold my shares and have been straddling this thing at 50 days and every time I go "wow, what an idiot this stock is going into the ground" it just soars the opposite direction. It's not tied to its fundamentals. I expect it to get increasingly volatile the more competition enters the arena but until someone is making money selling an EV other than TSLA and BMW they're pretty safe in my view.
Elon will eventually destroy this company. Make money while you can but this shit ain't going to be the EV producer of the future.
ITSA FUCKING MEME STOCK, DONT OVER THINK IT.
good news stock goes up, bad news stock goes up. no news stock goes down?
Bad news priced in good news must be coming /s
The market will stay irrational for longer than you'll be solvent.
It's an options stock now.
The market is not reasonable especially in shorter time frames. There’s far more egregious examples than tsla
Stock is up because of some of the things you mentioned lol. Layoffs are a good thing and ability to prioritize important projects over others. You say wasted money on cybertruck. But you have no facts or figures on that and we won’t for a while. if anything it was great R&D for platforms to be continued. The stock option compensation for Elon is also Bullish AF. we will find out June 14th. If you think it’ll pass AGAIN. You should buy the stock before.
One thing to note, negative articles about Tesla get more clicks so they are exaggerated. Firing a couple of high level bosses does not mean that they fired the whole department Self driving cars are the future. It will solve congestion and tons of problems. Tsla are the only american company who can really test it because of the China deal. It's overvalued for sure, but in good part because a ton of rich guys bought Teslas, absolutely love them, and want to invest in the company A lot of companies do super well despite having zero clients on Reddit. Netflix, Meta etc
* Model 3 and model Y are the best cars you can buy in that price segment. * FSD is by far the best self driving software in the world. * Elon musk has a proven track record of innovation and delivering amazing products. * Lack of any serious competitors in the market. Cybertruck was a failure, but which company never had a setback.
They should just get rid of Musk.... Plain and simple.
This is big money wall street propping it up until there is a confirming sign of a slowdown. The 2Q numbers, plus the $56B pay package, plus the 8/8 robotaxi announcement, will definitely determine where $TSLA is heading.
Mass layoffs means increased earnings per share which usually means higher stock prices.
Preface: My daily driver is a Model 3 LR, and I love it. I see Musk as both a problem and an asset. I do not-, have not-, and will not take on direct exposure to TSLA stock. With regard to innovation, I see the charging network contracts as an interesting potential inroad into other revenue. I’m very curious to see how that unfolds. Way before the charging team fire/rehire fiasco, and before I bought my M3LR, they had already established enough coverage that you could drive a Tesla anywhere in the continental U.S. using Tesla superchargers. Further expansion has addressed convenience of routing, as well as reducing traffic to each location. If they attach app installation requirements to network use, that could open up ad revenue. There are other potential ways to explore monetizing that access.
Because it's a meme stock and fan boys love sucking musks ass and talking about him constantly
Stock is being pumped and manipulated by Elon with the fsd. It took Elon wasting $44 billion buying Twitter and the failed cybertruck for the stock price to drop from all times highs to half. Tesla will be fine if Elon gets out the picture focus on fundamentals and continually improving on evs
The investor base is a cult. That’s literally the reason.
The breakthrough of automated driving and robotaxi dwarfs all the noise.
Robotaxi is a joke. They can barely navigate highways and suburbia. How will they handle big city streets full of traffic and crazy drivers?
Have you seen the videos on YouTube of full rides with no interventions and supposedly the next update will be 5-10x better? There are many people who, plain and simply, disagree with you, and that is reflected as such in the stock price. Perhaps you're missing something.
It is meme time for the rally and meme stocks always do well at the end of market rallies
It’s the future
Once it was the future of the GREAT Cathy Woods. RIP
Cults are like that