Why Tesla stock is vastly overpriced
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Why Tesla stock is vastly overpriced
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Re: Why Tesla stock is vastly overpriced
#2Why only Yahoo? Why not compare with more additions to the index and give a better picture ?
Re: Why Tesla stock is vastly overpriced
#3TSLA is more like Google+Amazon early on than Yahoo. Also, comparing TSLA to Toyota’s 6% margin when TSLA already has a 20% profit margin excluding ZEV credit sales? Pure FUD!
Re: Why Tesla stock is vastly overpriced
#4Why only Yahoo? Why not compare with more additions to the index and give a better picture ?
Google, Facebook and Amazon would be better comparisons, as Yahoo is a media company, not a fast growing tech company.
Re: Why Tesla stock is vastly overpriced
#5Short it big boy, short it.
Re: Why Tesla stock is vastly overpriced
#6Well that's a garbage take. This guy fundamentally doesn't seem to understand what an index is. The S&P 500 doesn't (well, shouldn't) make value judgments about the quality of the companies in it. It's just the 500 largest companies on US exchanges. That's what people who use it want.
Really, the big problem here was that it wasn't already included on the S&P 500 years ago, so that all of the gains leading up to this point could have been shared with passive investors. It's satisfied the market cap requirement for awhile, but not the profitability requirement, which clearly didn't work well in this case.
Re: Why Tesla stock is vastly overpriced
#7TSLA is more like Google+Amazon early on than Yahoo. Also, comparing TSLA to Toyota’s 6% margin when TSLA already has a 20% profit margin excluding ZEV credit sales? Pure FUD!
I’m not sure which profit margin you are talking about (gross? Operating?) But Toyota had a net profit margin of 6.95% in the last reported quarter, vs Tesla’s 3.77% net profit margin
Re: Why Tesla stock is vastly overpriced
#8Well that's a garbage take. This guy fundamentally doesn't seem to understand what an index is. The S&P 500 doesn't (well, shouldn't) make value judgments about the quality of the companies in it. It's just the 500 largest companies on US exchanges. That's what people who use it want. Really, the big problem here was that it wasn't already included on the S&P 500 years ago, so that all of the gains leading up to this…
Passive investors could have bought a broader market index than the S&P 500.
Re: Why Tesla stock is vastly overpriced
#9Here's a two-second method to determine whether TSLA is overpriced: currently, their market cap is $659B. The combined caps of Toyota, Volkswagen, Mercedes-Benz, Porsche, BMW, Honda, General Motors, Ford, and Nissan is only $629B. So unless Tesla is worth $30 billion more than all of those companies combined, either those companies are undervalued, or Tesla is massively overvalued.
Keep in mind, Tesla sold 367,500 cars in 2019, while those other companies sold over 34 million cars, or nearly 10,000% more. I realize that stock prices are based on future profits, and working capital is factored into it, but still, I just don't see the rationale in an ownership stake in Tesla being that much more valuable.
Re: Why Tesla stock is vastly overpriced
#10Here's a two-second method to determine whether TSLA is overpriced: currently, their market cap is $659B. The combined caps of Toyota, Volkswagen, Mercedes-Benz, Porsche, BMW, Honda, General Motors, Ford, and Nissan is only $629B. So unless Tesla is worth $30 billion more than all of those companies combined, either those companies are undervalued, or Tesla is massively overvalued. Keep in mind, Tesla sold 367,500 ca…
Tesla is the innovator in this space for 10+ years. Only a few of the companies are all in on electric- and 10 years from now there will be no new old school cars. Some of them have even giant liabilities because of the mess to the environment they have created, which also damaged their brand. Some of them probably wouldn't even exist anymore was it not for government backing/looking away and in some cases even intervention.
Many of the companies mentioned are quite far behind, and will face severe challenges in the coming years trying to adjust with little marging for error.
But most importantly Tesla is also a battery company! Who knows, most of the other players might even have to buy batteries from Tesla.
Gut feeling tells me that Tesla will still grow significantly, especially if they start selling batteries to other markets at scale, but also the car business itself will experience a tremendous growth.