Welcome to the Hardcore Husky Forums. Folks who are well-known in Cyberland and not that dumb.
Up 40% in August
Up 160% Since May 1st
Up 390% Since start of year
Market cap of 360B is almost that of every car Manufacturer in the World.
Love to hear thesis on buying stock w/ belief it can grow into valuation. They would have to literally sell every car made in the next 5-10 years.
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Equity investing is also shifting to a more individual paradigm thanks to yolo apps like robinhood and webull. More individuals are investing in "hot" names they know like Tesla, Apple, Rocket, etc., which just sends prices even higher. Add a split where people get absurd fomo and prices moon...next week should be no different barring some massive institutional sell offs.
Their battery tech has tangible, enduring value, but their AI product is probably 4th best right now, and IMO once Waymo or Uber wins the self driving car race, the auto OEMs lose most of their their power.
If you buy Tesla, I believe you're buying, at its core, a top notch battery company with some nice automotive patents and a quaint little manufacturing business (compared to the other OEMs at least).
If it was public, I would personally be loading up on Waymo, which at its last valuation was at 1/12th Tesla's market cap.
I like the different opinions though, so if someone is bullish on Tesla, I'd love to hear your rationale.
I've been convinced for some time that self-driving cars is the next massive paradigm shift that will change our society. Instead of owning high-cost, low-utilized assets (cars), we'll just summon one to our houses. You'll subscribe to a car rather than buy it. No need for the volume of parking. No need to pay for insurance anymore. Speed limits can go higher, safely. Commuting an hour in a self driving vehicle is way more appealing than taking on gridlock, so it will further change the composition of cities. Hell, half of us will be telecommuting anyway. There's a ton of knock on effects that will take decades to play out, but whoever wins the race is going to be minting money.
NIO is an absolute shit company, but it has the backing/funding of the Chinese govt and China will never let a non-Chinese company (Tesla) be the lead company in the EV market internally. Add to that the govt is mandating the transition of cars there to EV so its a guaranteed market. I hate owning it but I do...
Their vision of being way more than they are assumed to be plus an ability to connect to consumers with a brand message that develops a cultish core, plus an egomaniacal leader puts their potential in the stratosphere.
They are treated as a high growth company without the actual growth, and I don’t see how that doesn’t eventually catch up with them.