How do we know that? Is it even legal to switch it on in this country?
Hi @joe sod I'm reconciled to having to hold out, possibly for another 12 months, before closing my position. I could end up losing heavily, but Tesla's execution has to be almost ************************* to justify anything close to the current market valuation. As @Sunny noted yesterday, car makers have not been kind to investors. Lots can go wrong: design flaws, product recalls, assembly line hiccups, etc. With its low investment in R&D, Tesla is more prone to banana skins than most.
For a company not spending as much as some on R&D they continue to leave the auto industry in the dust with pipe line and innovation.
The market has turned on Tesla many times, even since I started following it in 2018. I opened my first short position in January 2018 at $362 a share and closed it later that year at an average $307 a share. I opened my second short position at $310 a share and closed it at $281 a share. I also made profits on my third and fourth short positions. As everyone knows, things haven't gone so well recently (what an understatement!), but the race isn't over. You can rest assured that the market will turn on Tesla many times in future.1. 12 months of waiting for the market to turn on Tesla when it hasn't in 10 years.
What has Tesla been doing? It took $18 billion from shareholders and another $13 billion from bondholders, it's losing money hand over fist, yet shareholders think it will pay them back over five times what they paid in. My money is on the boy who said the emperor had no clothes.2. If Tesla keep doing what they are doing you will loose heavily.
S**t has already happened - many times. Last year for instance, it took a charge of more than $120 million for buy-back guarantees on some of its cars. Last year too, Walmart sued it for solar panels that allegedly caused fires at seven of its stores. It accused Tesla of “years of gross negligence and failure to live up to industry standards”. The case was settled in November. I don't know how much it cost Tesla. We'll probably know tomorrow night.3. S*it happens to auto makers and you hope it happens to Tesla as well.
They don't. You saw what happened with the Cybertruck 'launch'. I quoted earlier from the Q2 report in relation to FSD (full self-drive), that Tesla said it was 'making progress with stopping at stop signs and traffic lights.' Not exactly awe-inspiring. Waymo (the Google subsidiary) leads the field in FSD by miles (actually thousands of miles). Tesla is nowhere.4. For a company not spending as much as some on R&D they continue to leave the auto industry in the dust with pipe line and innovation.
Volkswagen sells 10 million cars a year, Tesla less than 400,000, yet its market value is greater than Volkswagen's. That's anticipating a hell of a lot of growth.5. What banana skins? Look at the graph of Tesla growth and compare to the "most" in the auto industry. I think Tesla are growing sale at over 60% compounded.
……..it's losing money hand over fist
This is simply not true.
Do you realise the scale of the challenge Tesla has to overcome to justify its current market value? The market assumes that it will turn the corner very soon - it probably has to be this year- and that profits will grow quickly from there. In an earlier post, I reckoned that it will need to be generating profits for shareholders of $5 billion a year (and increasing consistently) five years from now to justify the current valuation. The true figure is probably higher, as I've implicitly assumed that they won't go back to shareholders for more funds (more piggies at the trough) nor that seepage in the form of share awards to Musk and his buddies won't be excessive. I haven't gone into the details of his package, but I suspect that, if the company is making that much money in five years' time, Elon Musk will grab a significant slice, leaving less for ordinary shareholders.The full-year 2020 is very probably going to be profitable also.
So I would say "It has been losing money hand over fist" rather than "It is losing money hand over fist".
Do you realise the scale of the challenge Tesla has to overcome to justify its current market value?
This is simply not true.
The least two quarters (yes - confirmed here first!!)……...have been profitable. The full-year 2020 is very probably going to be profitable also.
Tesla may very well be over-priced but let's stick with the facts please.
The market has turned on Tesla many times, even since I started following it in 2018. I opened my first short position in January 2018 at $362 a share and closed it later that year at an average $307 a share. I opened my second short position at $310 a share and closed it at $281 a share. I also made profits on my third and fourth short positions. As everyone knows, things haven't gone so well recently (what an understatement!), but the race isn't over. You can rest assured that the market will turn on Tesla many times in future.
What has Tesla been doing? It took $18 billion from shareholders and another $13 billion from bondholders, it's losing money hand over fist, yet shareholders think it will pay them back over five times what they paid in. My money is on the boy who said the emperor had no clothes.
S**t has already happened - many times
They don't. You saw what happened with the Cybertruck 'launch'
Tesla is nowhere.
As regards whether Tesla will make a profit in 2020, I simply don't know.
Colm,
You're a gas man.
Earlier - Tesla is making "losses hand over fist". With a little probing this has now become....
If you don't know something, why make it up??!! Seriously.
Anyway, I made my point - I'll leave it at that - don't have Fella's patience of saying the same thing 19 times!
My beautiful door colour analogy really isn't that hard too follow!
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