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Tesla is now worth more than GM and Ford combined

Oct 26, 2017
11,188
Go Tesla! It's amazing how far Tesla has come and they didn't have the already established power backing of the other manufacturers. Shows just how limited their view distance is.
 
Oct 27, 2017
3,601
Florida
I'm excited that Elon stepped up and championed this when he could have easily sat home as a very rich man. It's progressing us forward and it's exciting even if it's not fully there yet. It will be soon.
 

KeRaSh

Member
Oct 26, 2017
1,801
The market cap. is not based on the number of cars sold. It's probably mostly based on the technology inside the cars and the future prospect of autonomous driving.
Despite the fact that people love to tell you that the other car manufacturers will catch up and surpass Tesla as soon as they get into the EV game, we're not seeing any of that happening just yet.
Just last week I saw a news segment on German TV where even a German automotive analyst said that Tesla is still years ahead of the German manufacturers when it comes to the technology in their cars. That's not just fanboy talk.
Just look at the efficiency ratings of the Porsche Taycan. They're the least efficient EV in the EPA database and nowhere near the ratings that Teslas get (68-69 vs 109-111 empg for the Model S and 116-141 empg for the Model 3).
Then you have a joint-venture Taxi company between Daimler and BMW that just ordered 60 Teslas to further electrify their EV fleet. Why aren't they using the Mercedes EQC?
Or look at VW's ID.3 where they're producing thousands of cars to stockpile them for the launch this summer while the final software isn't even finished yet.
That itself wouldn't be a problem but they can't push the final software OTA but instead have to manually update every single car.

Apparently it's not that easy to produce a good EV, otherwise the big players would be knocking it out of the park with their first flagship models.
Tesla doesn't get enough credit for what they've achieved with their cars. They're far from perfect but underestimating them would be a huge mistake.
 
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dhlt25

Member
Oct 27, 2017
396
tesla is ahead of other car maker on tech for sure but it's overpriced as hell. FSD is no where close to where Musk claimed and the insurance business has no value. They also have a huge debt load and no yearly FCF yet. Still I'm salty about the stock, had 20k worth of TSLA when it was $70 lol, sold at 130...
 

Ryno23

Member
Dec 13, 2017
718
Its also the most valuable auto company in US history topping Fords 1999 peak


As I said in the other thread, these comparisons are pretty silly because Tesla is as much of "just a car company" as Amazon was "just a bookstore"
 
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Kernel

Member
Oct 25, 2017
9,309
Tesla was supposed to go bankrupt before they could be overvalued.

"Once <insert Tesla killer> is out it's all over for them"

Reminds me of Wii threads back in the day.
 

ccbfan

Member
Oct 25, 2017
859
Tesla is not a car company its a energy/technology company that makes cars.

People are more bullish about the possible profits from their battery tech than from the actual cars. Hence their stock price. Had many discussions with people when I bought the stock a few years ago at less than half current value. They keep bringing up car companies as its ceiling.
 

Complicated

Member
Oct 29, 2017
2,854
So the moral of the story is that Tesla is hella overvalued, right?
It's been overvalued by huge margins for years. The market can remain irrational longer than you can remain solvent, so don't bet against market crowding even if you can make a strong case for why everyone else is wrong. They have a ton of completely unnecessary debt on the books which are the source of people talking about the company failing outright and suddenly. That risk has grown over the last year or two. They're taking advantage of the huge corporate debt bubble, and the stock is so driven by sentiment that it would probably take a shock to that overall bubble (which you can see they weren't doing so hot at the end of 2018 when the Fed started to raise interest rates before they got cold feet) to bring valuations back down to earth.

It's at $530 right now and fair value is probably less than half that.
 

Trickster

Member
Oct 25, 2017
6,375
Judging by this thread I guess this the point where people on era that used to say Tesla was going bankrupt within a year switch, from that argument to instead calling Tesla is overvalued for the next decade
 

Marshall

Member
Oct 27, 2017
844
But the experts on Era told me they were going bankrupt.
My brother, when chatting about Tesla over Thanksgiving thinks this. He's disgustingly right-wing, which plays into it a bit, in my opinion. He went on and on about how Tesla got tons of government tax breaks and subsidies which helped them get to where they were. And that once these breaks ran out, they'd start hemorrhaging money and go bankrupt. I just listened and chuckled. I should have asked if he was shorting their stock. If so, I would be trolling him daily via text with stock updates.
 

Octodad

Member
Oct 26, 2017
2,117
My brother, when chatting about Tesla over Thanksgiving thinks this. He's disgustingly right-wing, which plays into it a bit, in my opinion. He went on and on about how Tesla got tons of government tax breaks and subsidies which helped them get to where they were. And that once these breaks ran out, they'd start hemorrhaging money and go bankrupt. I just listened and chuckled. I should have asked if he was shorting their stock. If so, I would be trolling him daily via text with stock updates.
“Government subsidies” as if every auto giant and oil company has never had a government subsidy.

The EV credit applied to all vehicles, so Chevy got the same deal. LOL
 

Kernel

Member
Oct 25, 2017
9,309
“Government subsidies” as if every auto giant and oil company has never had a government subsidy.

The EV credit applied to all vehicles, so Chevy got the same deal. LOL
Yeah I hear similar talk from people who conveniently overlook fossil fuel subsidies.

Ford and GM can only dream at selling OTA upgrades that cost a few thousand
By this time next year, Elon will be selling fart noises as in-car purchases.
 

Razgriz417

Member
Oct 25, 2017
3,749
My brother, when chatting about Tesla over Thanksgiving thinks this. He's disgustingly right-wing, which plays into it a bit, in my opinion. He went on and on about how Tesla got tons of government tax breaks and subsidies which helped them get to where they were. And that once these breaks ran out, they'd start hemorrhaging money and go bankrupt. I just listened and chuckled. I should have asked if he was shorting their stock. If so, I would be trolling him daily via text with stock updates.
the amount of $ lost by those trying to short the stock is astounding