Maybe TSLA will rewrite the conventional ways of valuing a company the same way they they have disrupted conventional thinking in so many other ways. Several of their non-recurring expenses that made the Q1 numbers look not-so-great will disappear in the next couple of quarters. If TSLA continues to set new records each quarter for deliveries and profits, I'm still confident that their share value will increase. Probably not at the rate is did throughout 2020, but at a respectable rate anyway.
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Sounds like a bubble to me, not something Warren Buffet would invest in. Then again, he's not a tech guy and only bought Apple late. Look into the dot com bust, lots of similarities out there.
https://finance.yahoo.com/news/heres-warren-buffett-thinks-tesla-195520766.html
It's clear it can go on for a while though, bitcoin is probably in that same boat. Probably one of those things where it can go on until you get some type of collapse like the 2000 dot com bust or the 2008 recession. Then value goes back into vogue.
I don't think TSLA is making money on selling cars. IIRC, their profit for the last quarter was less than the income from selling mileage credits to other automakers.
From CNBC, "Net profit reached a quarterly record of $438 million on a GAAP basis, and the company recorded $518 million in revenue from sales of regulatory credits during the period. It also recorded a $101 million positive impact from sales of bitcoin during the quarter."
So TSLA is not making money building and selling cars. If you take out the speculation on bitcoin as well as the sales of regulatory credits and TSLA is $181 million in the red.
So while they clever, they are not really making their money on the sales of cars. Their money is made on trading.
Not saying that's bad, just suggesting people understand where any profits are really coming from.
If other automakers have lesser need for such credits, what does that do to TSLA?
From CNBC, "Net profit reached a quarterly record of $438 million on a GAAP basis, and the company recorded $518 million in revenue from sales of regulatory credits during the period. It also recorded a $101 million positive impact from sales of bitcoin during the quarter."
So TSLA is not making money building and selling cars. If you take out the speculation on bitcoin as well as the sales of regulatory credits and TSLA is $181 million in the red.
So while they clever, they are not really making their money on the sales of cars. Their money is made on trading.
Not saying that's bad, just suggesting people understand where any profits are really coming from.
If other automakers have lesser need for such credits, what does that do to TSLA?
TSLA is down $40 over the past week. Good thing I am waaaaay over doubling my investment.
I know dogecoin is a crazy bet.
And should’ve dumped it when my $1500 turned into 11,000.
Riding it out.
And should’ve dumped it when my $1500 turned into 11,000.
Riding it out.
So far it's down 1.6% year to date and the S&P 500 is up 11.98% year to date. Of course all this can change completely around in a day.
You are free to hand out your own money to Tesla buyers and to build charging stations. But please, don't sign everyone else up to pay for what you want.
We've seen how this becomes an unsustainable boondoggle with prior attempts at social engineering through taxpayer funded efforts.
I'm all for individuals voluntarily putting their money where their values are. But please allow the rest of us the freedom to do likewise.
I believe the tax subsidies should only apply to cars under a specific price point to people earning under a specific income.
We need more public right to change legislation so people can hook into slow 110vac in more locations (without having to fight a legal battle with a hoa for a dollar of electricity)
If government wants people to own limited EVs they need to instead of subsidizing new cars
Stop taxing the living $$$$ out of used BEVs for registration .
Making EV registration and insurance lower would get John Q to consider owning the things, right now a $2000 BEV makes zero sense because of the sky high taxes and insurance on a car that is only about as useful as a moped.
I would own a newer $2000 BEV as a second car but the fixed costs are astronomical making it impossible to own a second car.
Not that long ago a second car was $80 a year extra on my insurance, we need to go back to that considering liability on one person driving should be the same whether I have 1 car or a thousand too bad blanket liability is Illegal, I wouldn’t own car insurance if I could just put liability on myself.
I am not real big on subsidies, even though America is full of them.
But if you wanna, it should be any EV, not just Tesla...
For persons earning up to $70K (or whatever) and only made in America cars.
Zee09
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Flip it daily...investments stink except vacant land
Agreed. Picking point in time is meaningless in investing. I am a looooong term investor.
And very diversified...
Maybe when it hits $2000. When do you think that will happen? Certainly before 2030...Flip it daily...investments stink except vacant land
Zee09
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I heard the Amazon like stories
Tesla has been good to me flipping in the $40-$70 spread range earlier this year
I even heard $5K a share- me personally I think its going down. Hope I'm wrong but I think the party is over.
My buddy and I figure we owe Tesla a cyber truck purchase. I see a need for that too.
They did all the ground work but I fear they will become the new Sony Betamax
If I understand the regulatory credit profits correctly, they are paid for by other automakers and not by the US taxpayers. If the talked about $7500 tax credit for BEV's is signed into law, that will boost BEV sales considerably with Tesla being the prime beneficiary.
Considering that the current administration is the most fiscally irresponsible in history, what's a few billion more dollars when you have already committed several trillion in pork projects and virtue signalling giveaways ?
That could happen any day. I expect that will also have a positive impact upon the TSLA stock value.I also expect favorable Q2, Q2 and Q4 delivery numbers and financial reports. That's why I think a value above $1000 early in 2022 is very possible.
I won't say what my average cost basis per share is on TSLA but being down 1.6% for the year at this point means nothing to me.
If I were one of those traders who bought in at $600 a share hoping for a quick rise and fast profit taking I may be a little more concerned.
Considering that the current administration is the most fiscally irresponsible in history, what's a few billion more dollars when you have already committed several trillion in pork projects and virtue signalling giveaways ?
That could happen any day. I expect that will also have a positive impact upon the TSLA stock value.I also expect favorable Q2, Q2 and Q4 delivery numbers and financial reports. That's why I think a value above $1000 early in 2022 is very possible.
I won't say what my average cost basis per share is on TSLA but being down 1.6% for the year at this point means nothing to me.
If I were one of those traders who bought in at $600 a share hoping for a quick rise and fast profit taking I may be a little more concerned.
Tesla's TAM, especially with the $20K car, is forecasted to be 20M cars before 2030.I heard the Amazon like stories
Tesla has been good to me flipping in the $40-$70 spread range earlier this year
I even heard $5K a share- me personally I think its going down. Hope I'm wrong but I think the party is over.
My buddy and I figure we owe Tesla a cyber truck purchase. I see a need for that too.
They did all the ground work but I fear they will become the new Sony Betamax
Why Tesla? Because they are in the forefront of the EV boom we are entering.
No one is even close, from a technology standpoint.
The only thing stopping them is losing Elon.
The naysayers have been wrong every step of the way.
Zee09
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I hope so but I don't feel positive these days.
Everybody is the new genius you know- meaning Tesla sets the ground work and the rest take the credit.
Like out with the old and in with the new. Posers will always be posers.
Stock goes to $900 and one uninformed idiot writes a hit piece and it plummets- sad but the true reality of it all.
Elon is pretty unique in this regard.
Every investor house (in my case Schwab) says Tesla's SPOF is Musk.
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