Key answer is margin , their margin is high , traditional Automakers - low . With things like cyber truck , the gap is getting bigger.
Tesla races past $100B in market valuation
11–20 of 360 posts
Re: Tesla races past $100B in market valuation
#12I for the life of me cannot figure out what could possibly justify this valuation for Tesla. Sure, their cars are pretty great, they have a ravid fanbase, and they have a pretty entertaining CEO who excels at driving interest in the company. They would need to execute perfectly and deliver more cars to customers than Volkswagen in a few years to justify such a valuation right now, and I just don't see that happening…
Is their really any other CEO who is as entertaining as Elon Musk?
Tesla definitely has a monopoly on "entertaining CEO" and people don't really know how to value that.
Re: Tesla races past $100B in market valuation
#13I for the life of me cannot figure out what could possibly justify this valuation for Tesla. Sure, their cars are pretty great, they have a ravid fanbase, and they have a pretty entertaining CEO who excels at driving interest in the company. They would need to execute perfectly and deliver more cars to customers than Volkswagen in a few years to justify such a valuation right now, and I just don't see that happening…
It's also their ahead-of-market technology and long term visions for infrastructure and sustainable energy generation
Re: Tesla races past $100B in market valuation
#14I for the life of me cannot figure out what could possibly justify this valuation for Tesla. Sure, their cars are pretty great, they have a ravid fanbase, and they have a pretty entertaining CEO who excels at driving interest in the company. They would need to execute perfectly and deliver more cars to customers than Volkswagen in a few years to justify such a valuation right now, and I just don't see that happening…
[deleted]
Re: Tesla races past $100B in market valuation
#15All the people who had the balls to sell TSLA short have already gotten hurt in the come-up, and although everyone thinks this market as a whole is going to correct soon, nobody wants to take the risk of calling a top. So yeah, expect the name with 14%+ short interest to keep rallying in this market, for the near term. One thing I do wonder about is how the roll-off of tax credits will affect their US sales.
Generally the starting price for their lineup has gone down faster than the tax credits. That will only continue (Model Y and Cybertruck are even more price competitive in their segments than S, X, and 3)
And there’s not much credit left, so I doubt it matters much.
Re: Tesla races past $100B in market valuation
#16Re: Tesla races past $100B in market valuation
#17I for the life of me cannot figure out what could possibly justify this valuation for Tesla. Sure, their cars are pretty great, they have a ravid fanbase, and they have a pretty entertaining CEO who excels at driving interest in the company. They would need to execute perfectly and deliver more cars to customers than Volkswagen in a few years to justify such a valuation right now, and I just don't see that happening…
With each car they get a lifetime of service revenue, mostly without competition. They expand their network effect, their supercharger footprint, and their technology lead as they maintain momentum. Cybertruck is poised to be a giant success, reaching into new markets outside of traditional EV buyers and into rural and suburban light trucks, the highest margin section of auto sales. Finally, its prominence attracts unsophisticated, long position investors. Perhaps it’s still overvalued beyond all of those factors. If you feel strongly about that, why not take out a short position?
Re: Tesla races past $100B in market valuation
#18Key answer is margin , their margin is high , traditional Automakers - low . With things like cyber truck , the gap is getting bigger.
My speculation (and this is all speculation at the end of the day to some degree) is I also think the success of other companies impact each other, such as the recent successful SpaceX abort test. For homework one night I will run an analysis showing the rise and fall of Tesla and SpaceX stock over each other mapped to positive news. I am hypothesizing there is a correlation.
Re: Tesla races past $100B in market valuation
#19Re: Tesla races past $100B in market valuation
#20I for the life of me cannot figure out what could possibly justify this valuation for Tesla. Sure, their cars are pretty great, they have a ravid fanbase, and they have a pretty entertaining CEO who excels at driving interest in the company. They would need to execute perfectly and deliver more cars to customers than Volkswagen in a few years to justify such a valuation right now, and I just don't see that happening…
Is their really any other CEO who is as entertaining as Elon Musk? Tesla definitely has a monopoly on "entertaining CEO" and people don't really know how to value that.
Warren Buffett's a pretty fun guy if you're into making money. Views differ.