RE:Off topic but hopefully interestingObscure1 wrote: This post is not about Suncor, so please feel free to ignore it.
FORD made an innovative and interesting announcement today.
In response to production delays due to chip shortages, Ford announced today that they will begin delivering their Explorer with a chip missing. The chip controls the rear set heating and AC. Ford will install the chip when it becomes available at no cost.
I like Ford's thinking.
How many customers who are waiting on a vehicle order (no matter what make or model) will happily accept an expidited vehicle order with a minor and temporary defect? I would accept a 99.9% completed car now knowing a reputable company stands behind it rather than waiting who know how long and who knows at what price (see the rapid escalation of costs for all the EV's these days).
Tesla has kinda been doing the same thing for years. They have delivered cars with sub-par paint jobs etc. on the understanding that the customer will be able to take the car into the dealer for free post-delivery work.
Is FORD's strategy ideal? Of course not, but I like the fact that they are taking steps to get things moving. I hope more companies will start thinking outside-the-box instead of allowing themselves to be cornered by supply chain issues.
Speaking of Tesla, I have been loading up. I moved into 60% cash a few weeks ago with the intent of buying dips in "best of" companies that have strong growth potential. The analyst consensus is targeting $12 earnings this year based upon delivery of 1.4 million cars. That means the target doesn't include any production from the new Austin and Berlin plants built into the numbers. Both plants are up and operating now despite the fact that the official openings are pending. If the company gets the two plants up to 50% capacity this year (Tesla is famous for out performing expectations), it wouldn't surprise me if the company delivers closer to $16 per share of earnings. If Tesla generates $16 of earnings, the current P/E multiple is 48x. That may be too rich for many investors, but if is not too far away from the current 33.3x PE ration of the S&P 500. If Tesla grows at 50% again next year, its earnings should be $24 which puts its PE ratio at 32x Yes, things have to go as expected, but Tesla is a company that delivers and God knows their CEO will share his every thought along the way.
I ignored Tesla for years as an investment based upon my need to see companies actually perform and deliver earnings. My conservative nature means I missed the boat with Tesla. However, I think TESLA might be the best company in the world at this time, and I'm grateful for the opportunity to buy share at almost 40% off the recent high.
I don't intend to sell my Tesla position unless I see the company making mistakes, which is exactly how I feel about Suncor.
Sorry about the off topic post, but I learn a lot from the thoughts and ideas of others who share on this board.
JICYMI, most companies are selling the vehicles wo the chips and will install them later. Seems Ford is a little late to the party? Not sure when the announced the chip strategy.
Anyways, good luck with Tesla.