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Tesla Inc TSLA

Tesla, Inc. designs, develops, manufactures, sells and leases high-performance fully electric vehicles and energy generation and storage systems, and offers services related to its products. The Company's segments include automotive, and energy generation and storage. The automotive segment includes the design, development, manufacturing, sales and leasing of high-performance fully electric vehicles, and sales of automotive regulatory credits. It also includes sales of used vehicles, non-warranty after-sales vehicle services, body shop and parts, paid supercharging, vehicle insurance and retail merchandise. Its consumer vehicles include the Model 3, Y, S, X and Cybertruck. The energy generation and storage segment includes the design, manufacture, installation, sales and leasing of solar energy generation and energy storage products and related services and sales of solar energy systems incentives. Its lithium-ion battery energy storage products include Powerwall and Megapack.


NDAQ:TSLA - Post by User

Comment by Experiencedon Jan 31, 2023 11:13pm
232 Views
Post# 35258597

RE:Tesla is no longer

RE:Tesla is no longerThis is how I see it....

In 10-20 years from now The major car manufacturers will be TSLA, Hyundai and the two Chinese EV makers.  GM and Chrsyler and the Japanese car makers will not exist.  The big luxury makers like BMW etc will be fringe players.

While all that sounds great for TSLA, the problem for investors in the stock is that TSLA currently holds a very high premium valuation compared to any other auto maker in the world.  As an example, if it was valued the same as say Hyundai, the SP would be in the teens.  

Over time, this premium will fade.  This may not necessarily mean that the SP will drop significantly although the potential is certainly there particularly if there is any bad news over the next few years.  At best it will mean a slower to a non-existent increase in the SP until the valuation comes into line with the other surviving automakers.

From this perspective, the investment play in TSLA centres around playing the volatility as opposed to growth.  As a case in point in point, I posted a while back that if the SP held around a hundred, the SP would rally to around 150 or so which it is had done and actually went above my prediction.

Lots of people look at Cathi Wood.  While over the years I have had the deepest respect for her, I feel in this case she is drinking too much of her own koolaid in terms of her TSLA SP projections.  For her predictions to become a reality, the current valuation premium would have to increase not decline and this just isn't how things work in the investment world.  She knows better but she is stuck now and her statements are more like the old saying..."Thou protests too much".
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