I would urge you sell your initial investment and keep just profit in. That way you will protect yourself to some degree.
Tesla maintains the highest gross margins in the electric vehicle industry, so they clearly donāt lose money making them. The mean estimate for 2021 earnings is $5.35, or around $5.3b $3.65 or around $3.6b on a GAAP basis (an immaterial amount of which will be bitcoin related). Credits amounted to less than $1b in revenue in the last twelve months.
Thanks for the update
Ha no worries. I will heed your advice on profit taking however!
The ālosing money on selling carsā trope was dubious back in 2018. In 2021 when they are generating huge amounts of free cash flow, have industry leading gross margins and almost tech levels of return on invested capital it just sounds silly. Regardless, regulatory credits are part of the industry and here to stay unless governments decide climate change isnāt worth bothering about. Q3 results will be out soon enough and I expect they will put that debate to an end. I think there are plenty of things you can critique the company on and question their valuation but their ability to make money is not one of them.
Debt is also a non starter for me. It is coming down steadily and $11 billion, mostly long term debt is tiny when measured against their market cap and the rate they are generating cash now. I agree there will be plenty of consumers who donāt want a Tesla but there are more than enough who do. I agree the competition is improving which is a risk and something you can validly question the valuation over but there is no convincing evidence I have seen that new EVs are having any impact on Teslaās demand. In the most mature markets (i.e. Norway and China) they are selling better than ever.
Sounds good then. Will be interesting to see how it all pans out.
This seems to be only an issue when you donāt like the company. Ā£CINE have $8bn looks bad compared to Teslas $11bn ⦠or compared to almost anything!
Got to admit I found that funny I remember reading āDebt is only a problem if you canāt service it. Interest rates are low.ā only a couple hours ago.
Fair cop
But thatās also in the context that Tesla is stupidly over valued.
Itās not that I donāt like the company. Itās more to do with concern over small investors having too much faith in it and potentially losing a lot of money.
Which is exactly my point about £CINE.
The same separation exist between Tesla and EVās as exists between the experience of cinema and Cineworld.
Tesla announces Q3 2021 numbers.
It is so bonkers to me that Tesla could soon start outselling GM (granted US only) if their chip niggles carry on. Just imagine telling someone that a decade ago.
Numbers out for Q3, smashed the markets expectations. 241,300 delivered this quarter! 73% year on year growth.
Where next for Tesla?
Predicted by a YouTuber I watched Tesla officially moved their HQ to Texas. Makes sense to have Space X and Tesla close together ⦠also tax.
This is what you call a deep dive⦠Thanks for sharing!