Tesla - Buy or Sell?

I don't get all the hype. I've not really researched either though.

All I know is they turned a profit for the first time ever or something.

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Poodlebrain

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I see what you did there.

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The guy just has big plans, and knows how to get shite done and make money doing it.

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Having Toyota as an investor doesn't hurt.

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Short the living shite out of this.

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It's likely to double by this time next year.

Buffet says never invest in emerging technology.

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Buffet says never invest in emerging technology.

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?? Electric motors, batteries, and cars are all 100+ year old technologies. Tesla is making money where others don't or can't because it is managed very well, they squeeze every bit of potential out of technology, and their production methods are constantly optimized.

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Buffet says never invest in emerging technology.

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I think that technically he simply says that he doesn't because it's part of his larger philosophy of not investing in things that he doesn't understand.

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They are an auto manufacturer, not a technology company.

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I would argue that Tesla is a tech company that makes cars. They are rapidly advancing battery tech, and selling their batteries to such no-names as Toyota and Daimler. Their cars are computers on wheels. I'm not saying that they are doing anything extremely innovative... They are just doing every little thing exactly right as they merge technology and cars. And their cars happen to work really, really well.

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and others are making money where Tesla doesn't or can't, for example CARS

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But they are making money, and their gross margins are higher than any other car manufacturer, I believe.

But no sense arguing with you, you have your mind made up. Just bookmark this thread and mark your calendar to show me how wrong I am a year from now.

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I think what you are missing is that people are saying Tesla as a stock is terrible, not as a company. The expectations based on stock prices just are unrealistic unless they start having a dominate market share

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No no, I understand. These guys are evaluating Tesla as if it's an established auto maker already, rather than as the growth stock that it is. What companies can Tesla be compared to? How many 10 year old car companies are there? How many high volume electric car manufacturers are there? Tesla is probably better compared to Apple of 5 or 10 years ago, carving out a niche right now in preparation for being the dominant player in a huge market in the near future.

Unless you think gasoline will some day be cheap and plentiful, electric vehicles will steadily claim a larger and larger share of the market. And everything points to Tesla being the leader there. Being relatively small is an advantage right now, as Tesla has the luxury of being able to quickly iterate and refine their process, technologies and techniques. Their batteries are so good that Toyota buys them, and they are getting better all the time. They already have a small but expanding network of rapid charge stations. The next step is a network of quick change battery stations to make recharges faster than refuels. The fact that they are producing one of the highest rated vehicles of all time is almost an afterthought.

It's impossible to place a value on TSLA based on their current financials. It has to be evaluated based on future expectations.. you think they are unrealistic, I think they are conservative. Tesla is widening an already wide moat.

All that said, TSLA will probably lose about half of the recent gains and drop to $55 or so in the coming days or weeks before resuming the upward trajectory. I will stand by my projection of $150 by next May.