Tesla was overvalued when it hit 50$ pre stock split. Its continued rise over a period of years to one of the most valuable public companies is just mind boggling. But I think even now there is a lot of hesitance in shorting the stock as entire fortunes have been lost trying to predict a share price correction.
Tesla is nothing more than an elaborate stock pumping exercise built on a business of selling crappy cars to techbros. It’s valuation is propped up by lies, hype and virtual signaling. It also can’t survive without copious amounts of government subsidies and low interest loans, since the car business is so capital intensive. At some point, all of these problems will come to a head. It’s a matter of when, not if, that Tesla collapses in some form. Though it may be bought out before formally filing for bankruptcy.
The Model 3 and Model Y combined for more than 500,000 units sold last year in the US alone. Do you really think it’s only tech bros buying them?
GM delivered five times that amount and yet Tesla is valued higher. It's painfully obvious that Tesla's stock is overpriced.
The new camry is expected to sell 300 000 units in the US alone
I don't think bankruptcy is going to happen. Despite economists' theoretical ideals, stock price has nothing to do with a company.
Tesla is selling cars at a profit whether the stock is $20 a share or $200. Long term the stock price should go to $20.
Didn't used to be, though. But yeah. Elmo's shame.
Its* valuation is propped up
When considering shorting stocks it's important to remember one of Keynes' better quotes, "the market can remain irrational longer than you can remain solvent."
And also that shorts have defined gains, but infinite losses
Very good read, thanks.
which works better
That's debateable. The system Mercedes uses is extremely limited. It only works in certain cities during a certain time of the day on certain roads that are below certain speed limit. FSD work anywhere in the US even on roads that have not been mapped.
Drivers can activate Mercedes’s technology, called Drive Pilot, when certain conditions are met, including in heavy traffic jams, during the daytime, on spec ific California and Nevada freeways, and when the car is traveling less than 40 mph. Drivers can focus on other activities until the vehicle alerts them to resume control. The technology does not work on roads that haven’t been pre-approved by Mercedes, including on freeways in other states.
That article is weirdly worded. The Mercedes pilot is specifically meant only for traffic jams (so you can do something else while the lane crawls along). Hence all the limitations. It's not cruise control. They have different tech for that, and it's not level 3. The level 3 traffic jam pilot might eventually grow into level 3 cruise control but for now they're distinct and Mercedes has not tried to pass one as the other afaik.
Even after the price cut, theirs is still 3x the price of Mercedes' system which works better. I have a feeling Tesla's earnings report won't go well this afternoon. https://finance.yahoo.com/news/tesla-earnings-q1-175358835.html
Tesla was overvalued when it hit 50$ pre stock split. Its continued rise over a period of years to one of the most valuable public companies is just mind boggling. But I think even now there is a lot of hesitance in shorting the stock as entire fortunes have been lost trying to predict a share price correction.
But we're about to find out whether Tesla truly transcends auto companies: https://bradmunchen.substack.com/p/could-tesla-go-bankrupt-the-odds
Tesla is nothing more than an elaborate stock pumping exercise built on a business of selling crappy cars to techbros. It’s valuation is propped up by lies, hype and virtual signaling. It also can’t survive without copious amounts of government subsidies and low interest loans, since the car business is so capital intensive. At some point, all of these problems will come to a head. It’s a matter of when, not if, that Tesla collapses in some form. Though it may be bought out before formally filing for bankruptcy.
The Model 3 and Model Y combined for more than 500,000 units sold last year in the US alone. Do you really think it’s only tech bros buying them?
GM delivered five times that amount and yet Tesla is valued higher. It's painfully obvious that Tesla's stock is overpriced.
The new camry is expected to sell 300 000 units in the US alone
I don't think bankruptcy is going to happen. Despite economists' theoretical ideals, stock price has nothing to do with a company.
Tesla is selling cars at a profit whether the stock is $20 a share or $200. Long term the stock price should go to $20.
Didn't used to be, though. But yeah. Elmo's shame.
When considering shorting stocks it's important to remember one of Keynes' better quotes, "the market can remain irrational longer than you can remain solvent."
And also that shorts have defined gains, but infinite losses
Very good read, thanks.
That's debateable. The system Mercedes uses is extremely limited. It only works in certain cities during a certain time of the day on certain roads that are below certain speed limit. FSD work anywhere in the US even on roads that have not been mapped.
That article is weirdly worded. The Mercedes pilot is specifically meant only for traffic jams (so you can do something else while the lane crawls along). Hence all the limitations. It's not cruise control. They have different tech for that, and it's not level 3. The level 3 traffic jam pilot might eventually grow into level 3 cruise control but for now they're distinct and Mercedes has not tried to pass one as the other afaik.