Tesla Inc TSLA

Here’s My Take

[Experienced]

Before getting on with my post I think over the long run TSLA has the potential to be a dominant car manufacturer.

The problems as I see them is as follows:

1.....based on valuation compared to other car companies, TSLA has high valuation and so it is currently priced to perfection and so any bad news will have a big negative impact icon the SP

2....in terms of technology, the competition has caught up to TSLA and are selling their cars at a significant discount to the price of a TSLA.  The major hurdle for the competition is manufacturing capacity and so anyone wanting an EV in the near future has little choice but to buy a TSLA

3....the big technological advantage that TSLA has is FSD.  IMO in practical terms this is still a few years away but more importantly, even if TSLA fully solves this riddle quickly, Musk has upset the Dems/Biden with the TWTR data dumps that the US will slow walk any regulatory approval.  In fact the Biden DOJ has already signalled a lawsuit against TSLA regarding FSD claims by Musk/TSLA

Biottom Line?

TSLA is a great company but there are serious questions about how the company can maintain its current premium valuation and IMO, unless you are a very long term holder there is a serious question about holding the stock compared to putting your money elsewhere.

[greendaze]

Wow ! Have you got the wrong information about legacy auto . They are falling backwards by the minute . Tesla has no competition . FSD is here . The other EOMs are far behind . Some of them are even putting their shareholders money into H2 . They just can't give up on the Rube Goldberg machine . Like the dealership model . I bet many of the posters hear are EOM  ice car salespersons