Ok boomer. WTF watches TV anymore? Online sources source faster and better. ET is truly boomer hell, WSB actually has much better info much faster. Bam 704 low. @athlonmank8 Your buying me Chick a fil. @Pekelo suck a dick gramps. You sat out today.
I read Wolf Street and his analysis is damn good. It simply doesn't make sense for TSLA to be this high unless you factor in magical future potential, but as a car company, no way. Granted, if they come out with their robo taxis and all those Model 3's come back to them and work as automated Uber's, then its highly possible for valuation to be much higher. But today, the stock should not be this price, unless fundamentals don't matter. I don't doubt that things can go to the moon based on exuberance, and I think this is what we are seeing here. In the past few days, nothing has materially changed for Tesla, so the $900 valuation just made no sense other than a short squeeze and pump from those earnings.
IMO, one of the biggest reasons for such a large spike is because the company said they have no need to do a capital raise now or possibly ever. There have been endless stories on Seeking Alpha about how TSLA needed to raise capital to pay for new production facilities. That "dilution" story was squashed.
That is a good point, and I do remember seeing that. But I'm not exactly sure if I believe it. Wolf outlined it pretty well where he said the luxury models, the S and X, were actually dropping in sales. Just looked it up from the article, and they dropped 29%. Then that whole China expansion was from a loan, and that looks like it injected cash into their books which was pretty substantial. But just based on car sales, they aren't making money, and loans will become due. So I think the only saving grace will be these robo taxis, if that ever gets off the ground. The story is similar with Uber. Burning cash like crazy, and the only thing to save them will be autonomous driving. So it all comes down to, can this dream be realized before they run out of money? If some major shock hits the system, and the FED can't or won't flood the world with liquidity, then its lights out for many of these companies. So on the one hand, I do believe that Tesla is doing something special, but I believe everything has to go right for them, but only one thing has to go wrong for everything to fall apart. I think they will run out of time.
I think the robo taxi idea may never pan out but I do believe the company can do quite well without it. They're slightly profitable now without taxis. They've got so much in the pipeline they won't need the S and X soon even though the profit margins are better there. Model Y coming soon (March) plus semi, cybertruck, etc... The China factory will be a huge boost IMO but the virus now may delay it some. They also have the solar and battery business. They also make money by selling Full-Self-Drive software and other software upgrades. With $5 billion of cash in the bank, the loans coming due aren't a problem. They're taking out new loans for any new factories. If they didn't think they'd be profitable, they wouldn't make a statement that they'd never need to have a capital raise. They think they'll have enough profits to cover the new loans.
how do I know someone is a wet behind the ears anos with legs ?? They use this boomer thing. Congrats on your tag
Aw muffin, was I so important that you had to respond to me? That's ok we all know you don't have anything else important in your life besides collecting food stamps. Times are tough for boomers!
I'm not talking to you directly, but The boomer thing is immature as fuck. I don't know who came up with that, but all I can think of is immature 16 year old girls throwing it around. Are you a immature 16 year old girl?