Tesla races past $100B in market valuation

Post by blackearl » Wed, Jan 22, 2020, 4:48 PM UTC

jmeyer2k wrote: post #12

nerdkid93 wrote: post #2

I 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.

Post by donogh » Wed, Jan 22, 2020, 4:49 PM UTC

nerdkid93 wrote: post #2

I 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…

Post by daxorid » Wed, Jan 22, 2020, 4:49 PM UTC

nabla9 wrote: post #29

totalZero wrote: post #5

All 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.

Is there any hard data showing that someone significant amount of short selling is caused by speculation and it's not hedging? Short selling is used used as a hedge against downside risk of a long position. It's reasonable strategy for big investors who have huge stake on Tesla to short sell to manage the risk. >A "short sell against the box" is also known as "shorting against the box." Sellers use this technique whe…

Post by agumonkey » Wed, Jan 22, 2020, 4:49 PM UTC

reilly3000 wrote: post #17

nerdkid93 wrote: post #2

I 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 u…

Post by Quarrelsome » Wed, Jan 22, 2020, 4:50 PM UTC

himinlomax wrote: post #28

nerdkid93 wrote: post #2

I 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…

I can see one good reason: the rest of the auto industry is playing catch up with Tesla. Nobody else afaik is even able to do over the air updates (reliable updates, that is). They have a charging network, the competition basically doesn't and can't seem to get their act together, and that's not even really a technological issue.