Michael Burry of ‘The Big Short’ reveals a $530M bet against Tesla

Post by notJim » Mon, May 17, 2021, 7:57 PM UTC

clomond wrote: post #114

turbinerneiter wrote: post #15

Teslas price is just too high. I think they will be very successful and become a big, dominant car maker. But their price only makes sense if they end up being the only car maker left. That's not realistic. Building an electric car is not that hard, especially if Tesla already did all the hard lifting for you. For a while I was thinking that the battery play - becoming the number 1 battery supplier - will justify the…

While I won't dispute that Tesla's share price is high given where the company is at right now when valued as an auto business, there are a few things I think are worth mentioning and commenting on in your post. > Building an electric car is not that hard, especially if Tesla already did all the hard lifting for you. This couldn't be further from the truth. While making a prototype EV is relatively easy, yes. EV indu…

Post by hahaxdxd123 » Mon, May 17, 2021, 7:59 PM UTC

bryanlarsen wrote: post #118

turbinerneiter wrote: post #15

Teslas price is just too high. I think they will be very successful and become a big, dominant car maker. But their price only makes sense if they end up being the only car maker left. That's not realistic. Building an electric car is not that hard, especially if Tesla already did all the hard lifting for you. For a while I was thinking that the battery play - becoming the number 1 battery supplier - will justify the…

The statement "Tesla market value is the same as everybody else put together" means either Tesla is expensive or everybody else is cheap or the statement is inaccurate. It's a little bit of all three. All other car companies are primarily debt financed rather than equity financed. Ford's market cap is $45B, but because it has $120B in debt which means it is worth $120B to it's bondholders and $45B to stockholders for…

Post by sigstoat » Mon, May 17, 2021, 8:02 PM UTC

totalZero wrote: post #43

boringg wrote: post #28

Earlier quoted context omitted.

Actually, this will likely be unpopular here, short sellers do have an important role in the economy. In the case of GME and more recently short sellers have been making money on crushing viable businesses (which they should not be allowed) but historically they expose fraudulent companies. I don't like companies getting pushed out of business by big short sellers or making money but just publishing bad research unde…

I personally am against selling equity that you don't own. It creates so many failure modes for the equity markets (failure to deliver chief among them). And I wouldn't be surprised if the net impact of short selling were actually positive for spot price, because shorts tend to sell into strength but they often squeeze into weakness. We've gotten accustomed to short selling and buybacks, but the equity markets would…

Post by JustSomeNobody » Mon, May 17, 2021, 8:03 PM UTC

Freestyler_3 wrote: post #110

jrsj wrote: post #100

Earlier quoted context omitted.

F150 Lightning being unveiled in a couple days is a good example of this. The F150 is the most popular vehicle in America & this has a good chance at being a pretty big success.

What crypto can I use at checkout?

Post by Kranar » Mon, May 17, 2021, 8:11 PM UTC

hahaxdxd123 wrote: post #133

bryanlarsen wrote: post #118

Earlier quoted context omitted.

The statement "Tesla market value is the same as everybody else put together" means either Tesla is expensive or everybody else is cheap or the statement is inaccurate. It's a little bit of all three. All other car companies are primarily debt financed rather than equity financed. Ford's market cap is $45B, but because it has $120B in debt which means it is worth $120B to it's bondholders and $45B to stockholders for…

Debt is a good thing for Ford! The majority of their debt comes from financing the sales of their cars to fleets, dealers, or consumers. This earned them 1.7B last year. Tesla's real advantage imo comes down to not having dealers eat into their margins. [1] https://en.wikipedia.org/wiki/Ford_Motor_Credit_Company