Surreal - Tesla’s market cap is now bigger than Ford’s was at its peak

Discussion in 'Wall St. News' started by RedDuke, Jan 7, 2020.

  1. %%
    AS IF $40 million SEC fine is no evidence?? Partly true; WSJ had a news article about all the terrible customer service, but having not bought one/none, not dogmatic on that,LOL-LOL
    Good news for the SPY, UPRO,QQQ bulls= if they buy 191% debt TSLA trash, they may buy anything?? The car magazine that had drop dead TSLA trouble, that is simply part of a pattern , not a stock tip or prediction LOL..................................................................................IBD stock mention is not a buy recommend, but you have to read the barely readable fine print.
     
    #21     Jan 8, 2020
  2. jl1575

    jl1575

    TSLA shorts are miserable these days, everyday TSLA just shot another 10-20 pts higher. There are still lots of shorts out there so the rally would keep running.
    The profit margins from China operation would be much higher due to much lower labor cost, and everyone knows that. .
     
    Last edited: Jan 8, 2020
    #22     Jan 8, 2020
  3. This could be a short squeeze out. Bears will capitulate when the trend is their mortal enemy. The reality of the situation is Gen X and beyond will be adopting electric vehicles. Long TSLA...until the trending sentiment changes.
     
    #23     Jan 8, 2020
  4. RedDuke

    RedDuke

    #24     Jan 22, 2020
  5. Sig

    Sig

    #25     Jan 22, 2020
  6. Pekelo

    Pekelo

    Exactly. Their original business, selling books online was never profitable. So if we want to make the analogy work, it is like Tesla losing money on cars, but being extremely profitable in electric paneled roofing. Well, that product still doesn't exist I think.

    It is the good old fashion short squeeze that drives the price. Just remember what goes up, usually comes down. The latest example is Bitcoin, dropped I think 70% in 2 months after its ATH.

    Or an older example, the day when VW conquered the world: (from 200 to 1000 and back)

    https://ftalphaville.ft.com/2018/10/31/1540962002000/The-day-Volkswagen-briefly-conquered-the-world/

    [​IMG]
     
    Last edited: Jan 22, 2020
    #26     Jan 22, 2020
  7. Sig

    Sig

    Batteries, it's all about the manufacturing cost curve for batteries. Like I said, Tesla is probably too much of a shitshow to pull it off operationally, but the concept of pulling down the battery cost curve with mass manufacturing for electric vehicles, along with the massive size of the battery market vice electric cars, is eminently reasonable from a strategy perspective.
     
    #27     Jan 22, 2020
  8. Pekelo

    Pekelo

    The energy density is too low. Nobody in the Western world can produce EVs profitably. Maybe the Chinese can, but strictly speaking it is not just Tesla's fault the lack of profits. On top of that they are badly organized but eventually that can smoothen out. But as long as there is no breakthrough in the battery front, they won't be selling profitable cars without government subsidies to the masses.
     
    #28     Jan 22, 2020
  9. RedDuke

    RedDuke

    100 percent, zero plans to short it. I only trade commodities. Just find it astonishing. Pure madness, the reverse will be as fascinating to watch as well.
     
    #29     Jan 22, 2020
  10. Pekelo

    Pekelo

    "Our equity salesman friend, who had put on the trade for several of his hedge fund clients reminisced, “it remains the single biggest money losing situation I can remember for funds caught short — and a lot of them were”.

    It also proved to be a historical moment in markets. At €999, Volkswagen briefly became the largest company by market capitalisation in the world, with a value of $420bn, eclipsing Exxon Mobil, Petro China and Microsoft.

    It didn't last long.

    On Wednesday 29, Porsche, perhaps realising their actions had caused some damage, generously provided an extra 5 per cent of the shares to the stricken shorts. By Friday, Volkswagen's ordinaries closed at €497, down 50 per cent from the Tuesday highs as the squeeze loosened."
     
    #30     Jan 22, 2020