?At least the guy does not seem to be a total leftist tool like the three richer guys, B. Gates, Mark Zuckerberg, and Jeff Bezos”.
Because Musk employs a great many people that work with their hands. Designing cars, setting up factories, designing rockets, and setting up those factories, etc...employing scientists, engineers, technicians, heavy equipment operators...gives one a totally different perspective.
That said, Tesla is one seriously overpriced stock. The market presence in the big picture of the auto industry does not justify that stock price. Not even close.
People who believe that electric cars are the future because of “climate change” are funneling their money at Tesla because every other investment in “alternative energy” has proved to be massive losers whenever government subsidies and mandates ate taken out of the equation. They are the only big game in town in that sector.
Gasoline prices minus massive taxation have been at historic lows while the price of electric rates have not and are not expected to go down. A Tesla minus government subsidies and the value of virtue signaling is not a smart use of funds at this time.
Yup.
Tesla stock is massively overpriced. As is Apple , Facebook and a whole lot of tech firms out there.
Renault, Toyota and Volkswagen all make over 10 million cars a year. Tesla is not even making a million cars yet. Is Tesla worth a massive $373 Billion? Heck no.
That all depends on how you look at Tesla. If you look at it as strictly a car company, then you can be shocked at the high valuation. They are a technology company, selling cars is a sideline for Musk. Indeed, he has stated wishes to not sell cars in the future, but to push his autonomous robotaxi venture. Where he will be making money is with his Semi truck sales to fleet buyers. Tesla is patenting a lot of technology that other car makers will be licensing from Tesla. They also are ahead in battery development, A.I. and robotics, worldwide satellite internet (StarLink which if spun off will make a splash with it's IPO). The stock is expected to soar anywhere from 6,000 to 16,000 dollars a share equivalent in the next 5 to 10 years (pre-split value, they're splitting 5 for 1 this week). They have over 3/4 million pre-orders just for their trucks, waiting for completion of the Austin Gigafactory to build the trucks. So they're not going bust anytime soon. They don't make a lot of vehicles now, but they're profitable and growing, unlike American carmakers which are shrinking in sales and losing money.
Correction: StarLink is developed by SpaceX, run by Musk. There is technology cooperation between SpaceX and Tesla.
“That said, Tesla is one seriously overpriced stock. The market presence in the big picture of the auto industry does not justify that stock price. Not even close.”
What’s incredible even now with the stock price at $2000 you can sell Jan 2022 puts with strike prices of $15,$50 and $100 for good money.
Hey, the PE is only 1000 or so. What could go wrong?