Time to buy TESLA?
- Thread starter Javacup11
- Start date
The "it is a tech company" has been the PR line for a while.
Kind of hard to justify, though.
PE is high because it's a growth company. Their EPS is expected to grow 40% a year unlike other car companies. The stock is massively undervalued if it actually grows at that rate. But the market thinks it can't, thus, the free fall in stock price. It has nothing to do with Twitter. Rivian and other EV companies also took a hit.
just buy more , keep dollar cost averaging into it even if it feels like catching it's a falling knife.
personally what I would do , esp if I bought in at a high price
Who's going to buy a $60000 car in a recession with high interest payments? (On top of higher mortgage payment).
Up next. Apple crashing. Time to short Apple
Up next. Apple crashing. Time to short Apple
It’s a niche car company and it’s valued like a tech juggernaut even with the recent drops.
They need profitable tech like FSD to justify valuation.
FSD has been promised “next year” since 2014. I doubt it happens.
There are cases where it isn’t feasible.
Like pulling over for emergency vehicles or police.
It tends to fail in conditions where the road is “gone” visually like snow or excessive sunlight. It fails if a police officer or construction worker is using hand signals to direct traffic. It fails in roads with potholes that are warned about through signage. It fails with cyclist hand signals.
It’s only worth money if it saves you time like a personal Uber. Otherwise it is a novelty that will cost more to maintain and create than it’s sales justify.
Plus, there’s potential class action because they were dumb enough to call it full self driving when it doesn’t do that and may never.
If it did happen the costs of lobbying, legal and liability haven’t entered into the picture and those costs could be more than development. Getting proper legal guard rails in place so your can be drunk and have you Tesla self drive could be decades with the slowness of legal, insurance and politics.
Plus, by developing for one brand only they limit how many units of the software they can sell.
Though really I suspect full autonomy is this generations flying car which was supposed to be ready 20 years ago. We get a prototype that’s almost there but isn’t practical.
Here’s Elon promising this “next year” since 2014.
Also, buying an EV is a thing you do for moral reasons. If you’re embarrassed to support Elon it cancels out and demand could soften. They are ramping up to produce a ton and might not be able to sell them all.
They need profitable tech like FSD to justify valuation.
FSD has been promised “next year” since 2014. I doubt it happens.
There are cases where it isn’t feasible.
Like pulling over for emergency vehicles or police.
It tends to fail in conditions where the road is “gone” visually like snow or excessive sunlight. It fails if a police officer or construction worker is using hand signals to direct traffic. It fails in roads with potholes that are warned about through signage. It fails with cyclist hand signals.
It’s only worth money if it saves you time like a personal Uber. Otherwise it is a novelty that will cost more to maintain and create than it’s sales justify.
Plus, there’s potential class action because they were dumb enough to call it full self driving when it doesn’t do that and may never.
If it did happen the costs of lobbying, legal and liability haven’t entered into the picture and those costs could be more than development. Getting proper legal guard rails in place so your can be drunk and have you Tesla self drive could be decades with the slowness of legal, insurance and politics.
Plus, by developing for one brand only they limit how many units of the software they can sell.
Though really I suspect full autonomy is this generations flying car which was supposed to be ready 20 years ago. We get a prototype that’s almost there but isn’t practical.
Here’s Elon promising this “next year” since 2014.
Also, buying an EV is a thing you do for moral reasons. If you’re embarrassed to support Elon it cancels out and demand could soften. They are ramping up to produce a ton and might not be able to sell them all.
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Tesla's best days are behind it. Too many entrenched competitors with far greater market share selling cheaper EVs.
My opinion is that stock is undervalued at 100. I'm investing with the understanding that this is a technology + energy company, not a "car" company. They have 0 competition in the world of FSD, and it's only a matter of time before it matures. Compared to all the other large caps in tech, it still has the highest y/y growth. Tesla is still a very young company compared to other large cap tech or other "car" companies.
Honda was the first to achieve level 3 autonomy in 2021, Telsa currently is only level 2, level 5 is considered FSD. This is despite Tesla having a first-mover advantage and a company valuation greater than all other car manufacturers combined.
Tesla is worse than a car company, they should be making e-bikes and electric scooters. Now they are using the same AI tech that did not work for FSD to make cringe robots.
Tesla is worse than a car company, they should be making e-bikes and electric scooters. Now they are using the same AI tech that did not work for FSD to make cringe robots.
It's a Musk lie to make people gobble that Tesla is not a 'car company' but a tech one. They have big production plant which are not doing good.
Bill Gates took a 500 million short on Tesla. Which infuriate Elon a lot before himself saying stocks were over valued.
I would be very careful with that stock.
This.
FSD is a full sham, and Musk knows it. Cars won't be fully autnomous for so many reasons. There are just a million scenarios that only a human can understand, because computers don't understand enough about the world to make the correct decision 100% of the time. Even if they are taught everything about the world, they may make 99.9% of correct decisions, but that 0.1% over billions of miles will result in thousands of deaths.
FSD is the empty promise used to justify Tesla as a tech company and its high valuation. Be very careful.
They still have trouble with left hand turns. Also, they cannot handle situations such as blown up Santas hitting them.
