Tl,Dr Tesla is ridiculously overvalued. Obvious statements are obvious.
It's more than that though. It has nothing to do with your post either (re: are they quality cars or not). It's just an interesting article about the fundamental headwinds Tesla is facing. I figured I'd share.
I read it and agree. I actually like Teslas, but there is a lot of truth in the summary paragraph.
Tesla stock is a social movement that Musk works hard to cultivate with his reality distortion field. As he has cycled through disruption stories, the reality distortion has worked well — at least for those who’ve drunk the Kool-Aid. But in the end, Musk has chosen a space with incumbents with strong capabilities, who, far from ignoring technological challenges, are racing to meet them. He cannot disrupt competitive reality.
Just wait until Toyota, Honda, BMW, Mercedes, Porsche, Ford, GM, Chrysler, ...... get their zone reads down. Bottom line is that when/if the space Tesla is currently occupying becomes economically attractive on a mass scale, the collective capabilities and economies of scale that it's potential competitors possess will most likely be too much for it to bear. Without massive government subsidies, Tesla would already be dead. Anyway, IMO, if the big boys decide to play in that space for realz, Tesla will likely have to hang it's hat on either being an offeror of a boutique item, or being absorbed.
HRYK.
Tesla stock is a way for Musk himself to rake cash. The Big auto makers will put him out of business, zone reads blah blah blah.
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Tesla stock is a way for Musk himself to rake cash. The Big auto makers will put him out of business, zone reads blah blah blah.