Why trim? This isn’t a bubble. Sure there will be volatility.
Thinking TSLA is a bubble just means one hasn’t done enough homework on their competitive advantages and moats going forward. Stock price should be an probablistic estimate of future cash flows, not past history.
Price to Sales ratio is still way lower than in 2013.
Battery Investment Day, eventually some progress on FSD could solidy growth optimism this year.
When will TSLA crash? I need to buy 1000 shares at reasonable price. TSLA is beginning to feel like AAPL after iPhone was launched. 2013 is like after iPod was launched.
I’d love to hear why a company with average auto industry margins justifies a valuation that’s multiple times higher than its peers. All the stuff about technology, moat, etc isn’t translating to better margins.
The yr/yr revenue growth was tiny even with launching the factory in China. Tesla is getting a massive valuation premium without having better margins or strong revenue growth.
I have long concluded I don’t understand Tesla, and likely will never do. Kudos to people who understand it and have the conviction to put their money on the line.
When a trader buys a call, the dealer who sells it will typically buy a certain amount of stock in the underlying to offset their exposure. If the shares continue to rise, dynamically managing that hedge can entail increasing purchases.
@pandeyathotmail Something for you. You may want to search the web to get more details how the market maker hedges their position when somebody trade an option. It has impact on share price. This option thingy is a complex mechanism and full of info, you may need to go to school to learn, ToS offers courses on option free for account holders. If you are good at maths and derivatives, it plays with those If you understand it well, can make huge fortune with a small initial capital. I use to know a blogger who make $30-$50M with only few thousand dollars trading AAPL calls during the heyday of AAPL (from iPod launch till around 2013, after that he quitted to do other stuffs, didn’t hear from him again). Is not a BS, he showed me his trading records. Btw, I knew more people went broke trading options though.
Long call = Long underlying + Short put is the most important formula
The problem with you, you think like an academic. You should behave like a cultist. Just believe in Elon Musk! Elon is a genius. Nobody is as godly and well liked as him after SJ is not around.
That is a good point. In other words, spreading the fixed costs over larger number of units sold till there is a capacity. Can other manufacturers not replicate the TESLA magic? The main thing that I like about the electric cars is the starting torque that they provide. Starting torque is characteristic of electric motor, not the car. They provide very good acceleration. With all electric or hybrid cars, even with prius when on the electric drive, the quick acceleration can be felt. Electric motors have better driving characteristics than gas or diesel engine. That is why all diesel locomotives are actually electric locomotive but with their own power house.
So, the question is , does TESLA have a moat around it? The battery will be the differentiating factor. The moment someone is able to come up with 400 miles battery, I can see electric cars going main stream. More manufactures will jump in. And unit costs will drop rapidly.
Will TESLA be banking on snob appeal and novelty factor, and for how long?
This determined the sustainable volume. Is it like Mac (low volume) or iPhone(high volume)?
I hardly drive. Would battery die quicker for infrequent driving?
Other than SFBA, I hardly see any public charging stations, so EVs need a round trip in other part of the world. 400 miles becomes 200 miles round trip. Do your reasoning still hold?
What is the magic? Sporty? Wheelbase seems pretty wide, can we park two Teslas in a two-car garage?
That’s what I heard. It will be a slap on Elon’s face. Only a component supplier?
That’ll help if it grows slower than revenue. It’ll expand operating margin. I don’t see how they expand gross margin above the low 20’s which will always limit profitability compared to tech hardware companies with 40%+ gross margin.
The non-auto stuff is trivial right now with worse margins than automotive.
I think their best play would be to become the EV battery supplier to the whole auto industry. That could be a big business with high margins given the manufacturing technology.