Posted on 01/16/2020 1:51:17 AM PST by Cronos
Today in regular trading, shares of American electric car manufacturer Tesla surged past the $500 mark.
Tesla, perhaps the most famous electric vehicle company in the world, has had a tumultuous last 12 months on the public markets. The company’s shares have traded as low as $176.99 in the past 52 weeks, and, as has high as $507.50 today.
The company is worth $507.28 per share at the moment, valuing Tesla at $91.38 billion according to Google Finance. As is often pointed out, Tesla is worth more than Ford and General Motors combined. In a slightly more exotic formulation, Tesla is worth just under 64 times as much as Aston Martin.
...the new target from Oppenheimer is over $600 per share.
..Tesla said Friday that it delivered 367,500 electric vehicles in 2019 — 50% more than the previous year — a record-breaking figure largely supported by sales of the cheaper Model 3. More than one-third of those deliveries — about 112,000 vehicles — occurred in the fourth quarter. The electric automaker reported production also grew 10% from the previous quarter, to 105,000 vehicles.
(Excerpt) Read more at techcrunch.com ...
The rest are merging to catch-up Fiat-Chrysler is merging with PSA-Citroen. We can expect perhaps Renault to join them.
The problem the incumbents face is: 1. Do they continue with their profitable models until change crashes them like Nokia OR 2. Do they cannibalize their profitable models and survive?
Figures an EU fan would like TSLA as well.
Bad judgement runs across the board !
WVAudi “invested” (if that is the word) 80 billion euros in their EV platform. That is approx TSLA’s entire market cap, and is by a company that actually knows how to design and manufacture cars.
All the experts agree and “everyone knows” that EV and autonomous is the future. I haven’t heard people so certain since the early 1980s when “everyone knew” and all the experts agreed that oil prices were going to skyrocket.
(By 1986, oil prices were under $8 per barrel.)
I think global warming is a crock and both TSLA and VWAudi are going to zero. TSLA because they don’t know how to engineer and manufacture cars to industry standards to compete with VW. VW because they have too much debt with an EV white elephant.
Someone must be expecting explosive growth at Tesla because their forward P/E ratio is about 100.
I would guess industry average is about 16.
Don’t know enough about the company. Sales would have to be red hot to justify those numbers.
They make high quality cars. That’s why Tesla is worth so much. People said they couldn’t do it and they smashed all expectations.
Cronos, why do people BUY these cars? They have limited range and astronomical repair costs - are people buying these things because they have piss-away money? I don’t understand the appeal of a Tesla but I see several on the roads … the owners of the building I work in installed a charging station in the parking lot for electric cars - a choice parking spot, now reserved only for “EV” …. unbelievable!
They have battery improvements coming down the pipeline. Electric cars will only get better, safer and more fun to drive.
Tesla must be doing something right.
No and he wouldn’t want to:
1. Brexit is happening on 31. Jan.
2. Musk has money, however it’s not enough to curtail the costs of Brexit
3. Ultimately for a business point of view, he will just wait for the dust to settle
I see Brexit and have seen it for the past 1.5 years as a massive business opportunity - as jobs, capital and factories have moved off the island. It is really good business.
Musk is worlds better than me and he’s probably seeing it the same way - let the dust settle and make business
Hell it could go to 1,000..just like the ridiculous P/Es of amazon and other companies WAY back in the 2000s before they crashed and took years to recover.
Or who knows? Maybe they’ll earn 20 a share in 2 years and go even higher.
I’m good with my Dodge Challenger and plan to have it a long time :)
Build it and they will come. Enough that established carmakers are no longer scoffing at Tesla’s success.
The electric car is now mainstream.
VW have invested and they may do well
The car industry works differently than Tesla I agree.
VW don’t make batteries themselves, they sit down with specialty battery companies and make contracts, very detailed ones. And within 4 years, they will have all the batteries they need.
So this makes it on the one hand more flexible, yet on the other hand less flexible.
EV, hybrids, even hydrogen cars are the future. That doesn’t mean the IC engine is out - no, that has its purposes. But it’s not going to be the only game in town.
At one point I thought diesel might be a viable choice as well, but I was wrong.
The fact is that ICE’s are getting more efficient and linking them to hybrids just increases the efficiency.
You going “Tesla will fail” is as silly as the envirowackos going “ICEs will fail” — there’s room for both.
Similarly - in the cities you’ll go for a smaller, maybe electric car, but in the countryside you’ll go for a big truck. Doesn’t make either BAD or good - just depending on the purpose
As more and more mainline companies offer EVs, Tesla will become just one of the crowd. Where is that explosive growth supposed to come from?
There is no dividend on Tesla stock, so that can't be figured into the inflated stock price.
The taxpayer-funded subsidies for buyers are now gone, the cars are fugly, and the Tesla pickup looks like a homebrew backyard special. Waiting times for parts can be months, not days. Don't figure on your favorite independent mechanic being able to/or be allowed to work on your Tesla. Collision repair costs are astronomical.
If you feel that saving the planet is really that important, go ahead and buy your Tesla, but be sure to unload it before the warranty runs out.
They are evaluated like IT services companies. The parallel is more with Amazon.
And if you consider they had 50% growth in number of vehicles in one year, well...
But the ones I know who bought it are car nuts who tell me the cost over a year is far lower than the cost of their ICE cars. And maintenance costs are low.
Finally - the range of a tesla model 3 is 250 miles (baseline) and the camry is 420 miles -- sounds like a big deal, but the owners I know who've had it for 1 year and have had other cars before and they say they never have range anxiety --> NOTE: this isn't going to be true for EVERYONE
What I don’t get is both the “EVs are the only choice for the future” and the reaction “we hate anything EV”
Both sides are nonsensical. EVs have their place in the wider scheme of things
That is plausible that more and more mainline companies offer EVs.
Tesla’s share will go down.
But then the same thing was said about Amazon.
besides, I ain’t an “EU fan” - as I’ve said before, I see it as a flawed, severely flawed institution yet no one else gives another alternative for the tiny countries in europe to band together.
The EFTA collapsed when the UK left it to explicitly join the EC.
Having to restrict freedom of choice in lightbulbs and thermostat settings to feed the EV car push is nonsensical.
Build more power plants or let the market decide what people do in their homes. Obama was terrible for personal liberty.
Ford and GM make trash.
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