Quote:
Originally Posted by Chick Webb
One does have to wonder. I mean, on what planet is TSLA the most valuable automaker? They made 1.4 Million cars last year, out of a global total of 75 M or so. Even if they could continue to grow at 50% per year their fraction of total sales wouldn't justify that valuation several years into the future. And with competition ramping up and the coming global recession there's a lot of well-placed skepticism about that ramp, along with the margin pressure that they'll face.
Margin pressure, apparently, is already here based on what I've been hearing about year-end price reductions. I suspect that we'll start hearing whispers of production cuts soon as inventories build; when you don't have dealers, guess who carries the cost of inventory? Is $100 the floor? Maybe not.
|
That’s real inside the box thinking, antzcrashing or maybe Cathie Wood will need to enlighten us. Those are the common sense questions any common sense investor should ask. Tesla’s market share erosion as a car manufacturer is inevitable, so hopefully Tesla as a “technology” company continues to evolve at an astronomical pace, because their vehicles sure haven’t. Hopefully the Cybertruck or their big rigs answer their prayers, because Tesla hasn’t made anything innovative in over 5 years. A Plaid? Wow a large battery to make the car go faster. How novel. The build quality sucks, the interior quality, sucks, the software, sucks. I bet 100% of Tesla consumers would take Apple CarPlay over a the sights and sounds of burning wood.
Will Tesla rebound? I’m sure it will. Will it ever justify a 50+PER, surely not.