TSLA Plz Explain

1500+ P/E
I forget the EV/EBITDA but also absurd.
Stock almost at 900 and Musk is the richest man.
Will we see a damn end to this. I own some TSLA, but even I think this is ridiculous.
What’re your thoughts - a drop any time soon? What’s fueling this insane growth?

 

Might be some leftover funds still trying to pick up shares of TSLA. I'm long TSLA, and would expect either a correction soon (I don't think it will be 100+ points bad, but a correction for sure), or the possibility that it touches $1,000.

Could also be investors piling in prior to earnings on the positive news surrounding the 500K delivery goal, rumors of selling out inventory for (I think) the model Y in China, etc.

Not entirely sure, but just some thoughts.

 

No rational explanation for the explosive growth. Most recently the positive production numbers and yesterday's shift in ER coverage from RBC and EVR to a buy rating has continued the positive moment on their shares. As impressive as tesla is, I just don't see a real justification for their valuation and I'm fairly certain the stock will correct in the coming weeks or months. But hey maybe I'm wrong and it'll keep rising beyond our wildest imagination 

 

A lot of people are referring to Tesla as the future due to innovation within the automotive, tech and energy industries. Assuming this is true, and Tesla's value can't be captured by current models or extrapolated by the usual thought patterns, then should people keep spinning their wheels trying the same things over and over again, or should they admit that perhaps the current methods of evaluation are not suitable for Tesla?

 

That's a great way of looking at it and a good point. I think if they actually properly branch out of automotive and their solar roof tiles and are then able to continue their streak of executing on innovative ideas then their valuation could prove to be boundless. But there are just so many "ifs" which stand in the way of that at the moment. I am by no means rooting against them, in fact I love their cars, but trying to play devils advocate.

 

I have a $70k short position across multiple expirations/strike prices (latest expiration being March)... TSLAs price action this month will determine whether I lose the majority of my investment or potentially hit $1mm in gains... I plan on quitting if the later happens and pursue entrepreneurship. Will keep you guys posted... recent stress of work hours spurred this trade. I view this as my way out. If it fails, I will get through the next couple years of this shit gig.

 

Absolutely not... finance single handily brought my family and I out of middle class. It also has given me incredible insight into various industries and the tools/business experience to one day create my own company and succeed. However, if I came from a wealthier background, I may have studied computer science in school and pursue entrepreneurship immediately out of college.

 

I have a $70k short position across multiple expirations/strike prices (latest expiration being March)... TSLAs price action this month will determine whether I lose the majority of my investment or potentially hit $1mm in gains... I plan on quitting if the later happens and pursue entrepreneurship. Will keep you guys posted... recent stress of work hours spurred this trade. I view this as my way out. If it fails, I will get through the next couple years of this shit gig.

damn bro .... good luck

"If you always put limits on everything you do, physical or anything else, it will spread into your work and into your life. There are no limits. There are only plateaus, and you must not stay there, you must go beyond them." - Bruce Lee
 

I think there are a few aspects that play a role, Tesla is in a fairly unique position to offer a product that, in the medium to longer term, will be in demand. Their autonomous driving technology but also their supercharger network is more advanced than what any other OEM could offer. Apple is struggling with project Titan, and even if they push ahead full steam, it would take years of catching up.
The other OEMs could have pushed harder to make space for EVs in their portfolio, but traditional ICE powertrains are still viable and profitable in their book. These are traditional people in Detroit, Munich, Ingolstadt and Wolfsburg. Not leaders in AI and software development. Tesla develop their own body modules, others just source them. Tesla also collect a lot of data through their cars and can offer bespoke solutions.

I see Tesla as a unique leader in the automotive and transportation space and their dominance is only going to increase.

Once you have driven a Tesla you will understand the difference and how much better their car is (in most areas). Main competitors will be Waymo, GM Cruise and others.

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