Shares of Palo Alto, Calif.-based Tesla rose as high as $312.75 during Monday morning trading, pushing the company's market capitalization to $51.01 billion. That eclipsed Detroit-based GM's $50.89 billion, based on its highest point in early trading. Ford Motor Co., meanwhile, was valued at $44.95 billion.
Tesla isn't just another company. More so than any stock we've covered, Tesla engenders optimism, freedom, defiance, and a host of other emotions that, in our view, other companies cannot replicate.
Seems waaay overvalued. Just think of how many cars GM, Ford and others sell compared to Tesla, even if you just look at their premium (high margin) lines.
That, and Tesla is totally at the mercy of government EV subsidies atm, which by the look of things might not stick around.
Quickly looking at yahoo finance they don't even make money yet and are trading at a -66 p/e ratio cause of it. They also only control less than 3% of the market share. I don't think they are going anywhere but I would be cautious. The title is very ambiguous too. They are largest by market cap only.
Please show us how many fully electric cars (with proper charging infrastructure, service centers, etc.) are being sold by GM, Ford and others.
I am not defending Tesla to absolute end, if their Model 3 does not come out on time, they are in for big trouble from investors.
But it does not make sense to compare Tesla to other car manufacturers solely on "they are car company, so they can be compared".
I'm trying to avoid the "buy high/sell low" strategy I embraced during the deflation of the Internet bubble.
I am totally supportive of TSLA (have a preorder in for their Model 3), but perfection for growth is completely priced into TSLA stock (not fundamentals, as Slomo4 stated). One minor misstep will be cause for wondering where the floor is on TSLA stock.
Way to go Elon, though - so glad we've got peeps like him leading the charge (and making bank!).
I'm trying to avoid the "buy high/sell low" strategy I embraced during the deflation of the Internet bubble.
I am totally supportive of TSLA (have a preorder in for their Model 3), but perfection for growth is completely priced into TSLA stock (not fundamentals, as Slomo4 stated). One minor misstep will be cause for wondering where the floor is on TSLA stock.
Way to go Elon, though - so glad we've got peeps like him leading the charge (and making bank!).
From experience, its not a very good idea to make purchases based on hype. If the feds decide to pull subsidies to Tesla, that stock is going to tank.
The current admin is cutting subsidies to a wide range of industries. Nothing is off the table (including Tesla), which is why I'd be rather hesitant buying too much Tesla stock.
Still not profitable.. that is like people saying amazon was a bad investment 2 years ago because it was still not profitable. In both cases the revenue and growth spending was the driver for not being profitable, it has/had nothing to do with lack of ability to create revenue.
Half bit investment heroes here just reading the stock market highlights aren't doing anyone any favors.
There's that, and the fact that Tesla can't pay off any outstanding loans without government subsidies. If those are ever cut, that's more than a tiny problem.
Please show us how many fully electric cars (with proper charging infrastructure, service centers, etc.) are being sold by GM, Ford and others.
I am not defending Tesla to absolute end, if their Model 3 does not come out on time, they are in for big trouble from investors.
But it does not make sense to compare Tesla to other car manufacturers solely on "they are car company, so they can be compared".
But that's exactly what the original article does. It's comparing the market cap of Tesla to the big US automakers, and that factors in everything, not just the electric car market.
There's that, and the fact that Tesla can't pay off any outstanding loans without government subsidies. If those are ever cut, that's more than a tiny problem.
So what? Every other manufacturer is free to make use of those exact same subsidies.. most are, and most are actually receiving larger benefits than Tesla.
There's that, and the fact that Tesla can't pay off any outstanding loans without government subsidies. If those are ever cut, that's more than a tiny problem.
I dont keep up much on politics, but didnt Trump appoint Elon Musk as a special advisor or something? I seriously doubt Musk will be getting his subsidy lost anytime soon.
I interpreted it as another comment about how modern cars are just computers on wheels (a sentiment that I share). If you're serious then I'm afraid I don't understand what you mean (I have trouble interpreting those two posts in a serious context), but to each his own. I dont know much about Tesla though, apart from how they're pushing semi-auonomous driving, which I see as a serious road hazard (you can't be just partially in control, that's a recipe for disaster), and that their cars are electric.
I interpreted it as another comment about how modern cars are just computers on wheels (a sentiment that I share). If you're serious then I'm afraid I don't understand what you mean (I have trouble interpreting those two posts in a serious context), but to each his own. I dont know much about Tesla though, apart from how they're pushing semi-auonomous driving, which I see as a serious road hazard (you can't be just partially in control, that's a recipe for disaster), and that their cars are electric.
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