Would love to hear opposing views.
Current opinion; the price is too saturated and what goes up must come down.
EDIT: Would also love to hear some opinions on NIO? Is it the “next” Tesla as some people are claiming it to be…?
I’m waiting until I see it hit $700. Then I’ll buy!
1 Like
If you will be happy with 100% in 5 years I’d say yes. I see chances of something like this happening to be fairly high. I wouldn’t be surprised to see 20-30% bump when they announce a 25k model this/next year.
1 Like
A question of risk vs reward. The ones that took the risk have been rewarded. With Tesla, the cat is out the bag. It’s not like Apple in 2004, when the majority were not aware of its potential for mass premium products. You had to own a MacBook AND be in music creation or graphic design to truly see how the industry was benefiting from the products. The fact a phone was then created was just a bonus.
I’d say everyone & their grandma has something in Tesla which historically, does not provide the best entry points.
People have had since 2010 onwards to see Tesla’s potential and buy in, but b/c they did not have a product that the majority could afford, the majority did not have insight into its potential. Now that the mass explosion has happened in the stock price, everyone & their grandma buys in. Causing highly risky entry points. The risk reward two years ago was excellent for anybody that had used a Tesla product.
Most have not used a Tesla product and are therefore basing their investment on what the internet is saying. You are buying 50% Tesla 50% Elon Musk.
If Tesla were to bring a bonus product that the majority could afford, I’d say today’s stock price is ‘cheap’.
8 Likes
I think they are massively overvalued. They are valued as if they have control of the whole car market. They actually have less than 20% of the global EV car market
They need massive growth in sales and profits to justify the current share price, any disappointing results could crash the share price
9 Likes
You can say that about the whole biotech industry.
3 Likes
I personally won’t add to my Tesla position but continue to buy funds where Tesla is a top holding. That extra diversification puts me at more ease in case of sharp drops in share price
@Freetrade_Team can this be merged with the TSLA share chat?
3 Likes
Richard (The Plain Bagel) actually deviated from his normal video style to make a video on this which might help:
I think the fact he had to pre-emptively address the anticipated backlash (@ 2:45) is quite telling.
Also this timestamp (13:10) from Ramin (PensionCraft) gives another snippet.
Ultimately all of these arguments were equally true at $500 and Tesla obviously grew massively since then. It could easily remain detached from fundamentals and grow massively further, who knows.
2 Likes
I thought Tesla was over valued at $200 before they split so I’m obviously not a good one to listen to… But overall the stock is not really linked to any fundamentals - check out the analysis in the FT recently regarding the fact that Tesla make money from selling carbon credits rather than making profit on their cars… It’s a bit of a finger in the air stock - could double in a year or could be down 30%.
4 Likes
The way I see it is the early adopters of Tesla stock have had some use of their products and have researched how the company plans to operate. Those two points are way more than what I’d imagine most of the other investors into Tesla have done.
The same way people have had early use of the FreeTrade platform, saw the gap in the market and invested a little. (Although it was very fortunate Robinhood pulled out of the UK).
I think that’s actually part of the problem, the products are so great and that’s immediately obvious after using them. Unfortunately great products alone don’t justify a valuation, you need a path to enough future earnings.
Spending time in friend’s model X / S makes me very keen to buy a Tesla, but that doesn’t make the stock fairly priced.
2 Likes
The important line being - “and have researched how the company plans to operate”.
I think that if you don’t currently have a position in Tesla, the risk outweighs the reward in terms of making an investment at the current price. I believe there are other investments out there which will enable a similar return with less potential downside once Tesla eventually reports some negative earnings.
Could Tesla still go up? Of course. However I think there are other investments out there, even in the EV space such as Nio, which offer ‘less risk’ at the moment. Nio has a lot of things going for it and investor awareness of the stock is an order of magnitude lower than that of Tesla.
4 Likes
Tesla is way overvalued and it’s caused a bubble in the EV market with NIO, Xpeng, Li Auto etc all promising to become the ‘Chinese Tesla’.
Ask yourself what has NIO done to justify being valued at $90B? How many cars did it sell in 2020 compared to VW? Is it an absolute guarantee that NIO will become a leader in the EV market?
I wouldn’t touch any of them personally, sure they may go up much further but I’d rather save my risky speculative plays for something like bitcoin 
If you’re on the fence about the risk of Tesla could just buy into Scottish Mortgage Trust as it is their top holding representing about 10% of their portfolio. Will give you good exposure with much less overall risk.
1 Like
Thank you for all the opinions! Decided against it and placed my eggs into a huge variety of green energy / hydrogen fuel stocks. (AFC, CLNE, NASDAQ: PLUG, PNPL, GEVO etc.)
1 Like
Imo its still undervalued. I say that as a non tesla ev owner. Evs are vastly better in most ways than an ice vehicle. The biggest downside is charging infrastructure for larger journeys which teslas supercharger network largely solves.
This is without factoring in a cheaper car for the masses with their newer and much cheaper battery tech, autonomous technology, grid storage solutions to resolve renewable fluctuations, and home energy. Teslas tech is the future right now (albeit at a premium price). Will buy more whilst it’s on sale. Will buy a couple of their vehicles within a couple of years. Solar and Storage later.
1 Like
Boy, am I glad I curved this one…
2 Likes