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OK, that's it. I'm going to short TSLA

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OP does raise the point re what the true price should be. For a company that has made a small profit in one quarter and a has a fair bit of accumulated losses under their belt, Tesla is arguably over-valued already.

(Oh boy, I wonder what sort of response that musing is going to get me....)
 
OP does raise the point re what the true price should be. For a company that has made a small profit in one quarter and a has a fair bit of accumulated losses under their belt, Tesla is arguably over-valued already.

(Oh boy, I wonder what sort of response that musing is going to get me....)

Compare to Amazon or numerous other tech companies. TSLA is just starting to get into overvalued land and has a ways to go.

They are considered a tech and green company - both highly coveted assets right now.
 
Compare to Amazon or numerous other tech companies. TSLA is just starting to get into overvalued land and has a ways to go.

They are considered a tech and green company - both highly coveted assets right now.

But Tesla is NOT a tech company. Tech companies get valued so high because they have the potential to have massive profits, with very little capital expenditure. Building cars is WAY capital intensive. No other way about it.

Granted 'valuation' is based on what people 'think' a company is worth. Not its real value. I find market cap to be fairly useless number.
 
But Tesla is NOT a tech company. Tech companies get valued so high because they have the potential to have massive profits, with very little capital expenditure. Building cars is WAY capital intensive. No other way about it.

Granted 'valuation' is based on what people 'think' a company is worth. Not its real value. I find market cap to be fairly useless number.


Building EV's is very different from building ICE cars.

You're right, the capital expenditure is still more than a tech company. But TSLA is more than a car company. As the far and away leader in EV technology they will continue to reap profits from their patents and other licensing for their technology.

Creating a massive charging network becomes a bargain for other companies to pay a fee for each car they make to use it, for example.

TSLA is the leader in an old market that is changing quickly into a new market.
 
But Tesla is NOT a tech company. Tech companies get valued so high because they have the potential to have massive profits, with very little capital expenditure. Building cars is WAY capital intensive. No other way about it.

IC fabrication has significant capex. (see Intel) I don't see that capital intensive rules out being a tech company. Consider data centers for cloud companies.

Financial people like to pigeon companies into categories. But that could be a problem. Tesla is IMO a hybrid company. It's applying tech company mentality to an established field. That's what disruptive technologies do. Consider Apple vs the Music industry, or Amazon vs. Consumer Discretionary. The high valuation of tech companies like this is due to their potential to challenge and possibly dominate a whole established sector.
 
The high valuation of tech companies like this is due to their potential to challenge and possibly dominate a whole established sector.

Exactly. When the $35-40K Gen3 arrives, and the SuperCharger network is mostly built out, how will ANY other car manufacturer be able to compete? You'll have your daily, affordable driver, and if you want to take a road trip, go ahead, and oh, BTW, the fuel/cost to do so? that's free. Go ahead Japan/Detroit, answer that one. Game.Over
 
Apparently people listened to your advice, in part, today. A circuit breaker had to stop the shorting activity. Apparently there was a massive fund that shorted a bunch which created significant downward pressure causing others to short and even more to sell causing more pressure resulting in a falling knife today. Plenty of new longs took their money and ran either profiting or triggering stop losses. The stock recovered some but there had to have been a lot of shaken buyers who needed some time alone. Classic market manipulation.
 
Apparently people listened to your advice, in part, today. A circuit breaker had to stop the shorting activity...falling knife today...triggering stop losses..Classic market manipulation.
WHAT! You mean I'm going to get my very own personal interview with the SEC?!?!?!? ;)

Besides, my advice was to sell short ONLY ef'n it gapped up to $800 on da open..... :)
 
I'm buying more TSLA tomorrow for the long term. Tesla already had set the bar too high for other manufacturers to reach, and now they just offered AWD, almost 700HP, and INCREASED efficiency further!!! I'm actually starting to feel a little bad for other manufacturers. Similar capability will be seen on the Model X, making the Model X the fastest, and most efficient SUV/crossover ever made. The fact that the stock price went down just shows that most people still don't get it yet, which means more easy money for ME!!! LOL!!!