I feel it is still overpriced because of free money (like most US stocks) and has a lot further to fall, last time I checked the price was > 1000 years of earnings. Maybe revenue and profit simply don’t matter any more to most people, but I like to think they do.
It’s a solid company IMO and will deliver for customers and come to dominate the market in time, but if we enter a correction it could correct a lot farther. Last year around this time it was worth $100 a share, and not much has changed in their long term plans since then.
All that said I wouldn’t sell it at a loss at any price if you are in it for the long term, they have a bright future, it just might be a bit farther away than the current price implies.
I don’t think prices are going to go anywhere near $800 again for a long time. You may say Tesla have an advantage over other carmakers being first to the party etc, but as with other things, they’ll soon be caught up. Nothing justified their ridiculously high market value. It’s wishful thinking from the best of the best outcomes for Tesla.
Maybe they’ll have some incredible breakthrough in the battery department that would really set them apart, but it could just as easily be a company like Panasonic.
As for the cars, I don’t know many people who would prefer a Tesla, over a good German electric car. The build quality on a BMW/Mercedes/Audi seem better than what I’ve seen on Tesla.
You clearly know extremely little about Tesla. The amount of people still putting its Market cap up with car manufacturers…do any of these have the largest data set driven on Earth? (Multiple Billions of miles in data, closest company is Google at 6million). 20b of cash in the bank…All other manufactures are at severe debt levels.
No other auto man makes and supplies countries and individuals with energy storage…ergh the list goes on. Maybe in future years, you’ll realise you didn’t look into Tesla properly. Your money, your choices
I’d rather not use a worksheet made by someone who doesn’t know how to calculate enterprise values correctly. And not even adding Tier 1 suppliers whilst including charging providers with EVs? What exactly is this supposed to show? Didn’t know Ford had a fuel station arm. Judging by some of Alphaville’s cockiness you’d think wasteful productive bubbles have never happened before in the history of capitalism.
Whether it supports a particular investment thesis or not, the data is the data, and I can’t see any issue with more transparency, or why this is somehow of less value than a candle chart grabbed from Bloomberg, shared via tweet by some rando $TSLA BULL, sorry, self proclaimed investment analyst, for [insert Greco roman god name] Capital/Securities/Advisors* (delete as aplicable).
I actually think it’s very useful to have this comp set, and it throws into relief the dislocated valuations in the sector, which might be helpful to those just starting out on their investment journey, especially as they’re entering a market during a period of marked uncertainty and volatility. Those articles provide a balance to the hyperbole.
Not sure what your issue with the enterprise value? At a glance, look fine to me? But you could always ask the them to incorporate your suggested improvements, for the benefit of everyone? After all, they’re quite a receptive bunch despite perceptions that would suggest otherwise!
What worries me most in that chart is not all the red but the two figures for YOY return in green at the top, which indicate very frothy valuations; Tesla and Nio are still up ~ 300% and 800% on a year ago. Tesla isn’t going to go bankrupt, however Nio I am less confident about, and Nikola is going to zero IMO.
Have you seen the operating system in the new Volkswagen EVs. It’s pretty dire nowhere near Tesla even now. Have you seen the third party charging systems not great compared to supercharger network. Tesla are great at building efficient electric motors and software.
Legacy auto will struggle to catch up as software was never a strong point in fact it was always a weakness. Legacy auto use dealers aswell so profitability is not the same as Tesla per car sold. Tesla have so many advantages it’s scary. Maybe Rivian can give them a run for their money. Legacy auto no way.
Feel free for anyone to use it, I just don’t think it elaborates much about valuations that’s all. For example, is Tesla’s valuation reflective of cars right now, or autonomous driving? I think we all know which. 2022 revenues? Great, but what about after that?
First few EV EVs seem more or less correct but traditionals are way out. eg Toyota is given as $214b when its actually $350b. No idea why they’re including receivables in their calculation, other than to perhaps deliver their point of view better.
While old-school automakers with viable electric vehicles like Ford and General Motors were struggling to command a valuation at a single digit multiple of earnings.
Funny, I actually agree OEMs are underappreciated, but maybe the authors should stop to have a poke and ask: why?
And then they’ve never even mentioned to possible newbies that all risks assets sans energy, travel and financials have been “collapsing”…I’m too harsh, after all how can you concentrate with such high doses of smugness.