Surreal - Tesla’s market cap is now bigger than Ford’s was at its peak

Specterx said:
I wouldn't be so dogmatic. TSLAs corp governance is terrible but claims of fraud have so far not been supported by any clear evidence (many have looked hard). The recent massive short squeeze was set off by the bear thesis of "structurally unprofitable, busted growth story" running into'' reasonably solid numbers ''. The company is clearly in a much stronger position today than it was a couple of years ago.
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AS IF $40 million SEC fine is no evidence?? Partly true; WSJ had a news article about all the terrible customer service, but having not bought one/none, not dogmatic on that,LOL-LOL
Good news for the SPY, UPRO,QQQ bulls= if they buy 191% debt TSLA trash, they may buy anything?? The car magazine that had drop dead TSLA trouble, that is simply part of a pattern , not a stock tip or prediction LOL..................................................................................IBD stock mention is not a buy recommend, but you have to read the barely readable fine print.
 
TSLA shorts are miserable these days, everyday TSLA just shot another 10-20 pts higher. There are still lots of shorts out there so the rally would keep running.
The profit margins from China operation would be much higher due to much lower labor cost, and everyone knows that. .
 
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This could be a short squeeze out. Bears will capitulate when the trend is their mortal enemy. The reality of the situation is Gen X and beyond will be adopting electric vehicles. Long TSLA...until the trending sentiment changes.
 
Specterx said:
Comparisons between TSLA and AMZN aren't very useful. AMZN's strong performance over the last few years isn't due to the e-commerce business, but rather almost entirely to AWS
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Exactly. Their original business, selling books online was never profitable. So if we want to make the analogy work, it is like Tesla losing money on cars, but being extremely profitable in electric paneled roofing. Well, that product still doesn't exist I think.

It is the good old fashion short squeeze that drives the price. Just remember what goes up, usually comes down. The latest example is Bitcoin, dropped I think 70% in 2 months after its ATH.

Or an older example, the day when VW conquered the world: (from 200 to 1000 and back)

https://ftalphaville.ft.com/2018/10/31/1540962002000/The-day-Volkswagen-briefly-conquered-the-world/

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Pekelo said:
Exactly. Their original business, selling books online was never profitable. So if we want to make the analogy work, it is like Tesla losing money on cars, but being extremely profitable in electric paneled roofing. Well, that product still doesn't exist I think.
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Batteries, it's all about the manufacturing cost curve for batteries. Like I said, Tesla is probably too much of a shitshow to pull it off operationally, but the concept of pulling down the battery cost curve with mass manufacturing for electric vehicles, along with the massive size of the battery market vice electric cars, is eminently reasonable from a strategy perspective.
 
Sig said:
Batteries, .... is eminently reasonable from a strategy perspective.
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The energy density is too low. Nobody in the Western world can produce EVs profitably. Maybe the Chinese can, but strictly speaking it is not just Tesla's fault the lack of profits. On top of that they are badly organized but eventually that can smoothen out. But as long as there is no breakthrough in the battery front, they won't be selling profitable cars without government subsidies to the masses.
 
Sig said:
Just remember if you're thinking of shorting that the the market can remain irrational far longer than most of us can remain solvent!
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100 percent, zero plans to short it. I only trade commodities. Just find it astonishing. Pure madness, the reverse will be as fascinating to watch as well.
 
"Our equity salesman friend, who had put on the trade for several of his hedge fund clients reminisced, “it remains the single biggest money losing situation I can remember for funds caught short — and a lot of them were”.

It also proved to be a historical moment in markets. At €999, Volkswagen briefly became the largest company by market capitalisation in the world, with a value of $420bn, eclipsing Exxon Mobil, Petro China and Microsoft.

It didn't last long.

On Wednesday 29, Porsche, perhaps realising their actions had caused some damage, generously provided an extra 5 per cent of the shares to the stricken shorts. By Friday, Volkswagen's ordinaries closed at €497, down 50 per cent from the Tuesday highs as the squeeze loosened."
 
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