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TSLA Crashes to $5 per Share
- Thread starter Rams Fan
- Start date
Other car companies do this?
https://electrek.co/2022/12/15/tesla-electric-launch-electricity-retailer/
It makes cars. And you point is ??? Valuation is insane, even today.
My point is, as long as you limit Tesla to a car company you will puzzle over its valuation. Once you recognize that Tesla is an energy company that also makes cars (with margin unheard of in the car industry), you may start to appreciate its value.
A few points:
The total energy revenue for Tesla in 2021 was $2.78 billion. However, the cost of the energy revenue for the year was $2.91 billion, leading to a $129 million loss in this sector. In 2022 that revenue so far has not grown substantially and accounts for less than 5% of total revenue...Bottom line... the margins are marginal in this space in contrast to profits generated from car sales.
S&P Global Mobility reports Tesla’s market share of new registered electric vehicles in the U.S. stood at 65% through the third quarter, down from 71% last year.
The firm forecasts Tesla’s market share will decline to less than 20% by 2025.
Might want to read this:
Tesla Records $21.5 Billion in Revenue and 2.1 GWh Energy Storage Deployments in Q3 2022 | Mercom India
Tesla energy is profitable in 2022. No point comparing it to auto which is extremely profitable but energy is growing YoY, mostly constrained by battery production limitation. Expectation is major growth in 2023 and beyond.
Tesla's market share of ev in the US is 68%. Of course it is going to lose market share as competition ramps up, but market is expanding so Tesla auto is still growing significantly YoY, with margins of 20 to 30%, something no other auto maker can achieve.
20% in 2025... Wanna bet?
In a true Capitalist Market where would TSLA or SpaceX be without all those juicy Socialism tax credits since it’s beginning? I was taught in high school economics that high margins attract new participants and old ones to retool.
Elon has lost something after screwing up by wasting $30B on Twitter. If he’s so stable how come MS can’t find debt buyers for Twitter? I respect your faith, if my memory is right you held ENPH or SEDG through some big drops 2020-21(?) until it went back up.
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Most stocks are still way overvalued. Not really surprised that buyers are coming in to scoop shares. The only ones saying to buy stock are those hacks on CNBC who probably, want you to pay higher prices for stocks they are trying to get out of. It defies common sense and logic when a lot of stocks are trending down, not up. We have not had recession in Europe and US which is coming in about 3 months time. The price manipulation in the oil market is about to end as the US strategic oil reserves get bled out by Joe Biden. I am just waiting till there is not a single drop left.
Tesla is "an energy company" only to the extent that it bought Musk's floundering Solar City in order to bail it out.
As far as solar companies go, Tesla doesn't even crack the top 10. At least, I Haven't found any source that credits Tesla as having more than about a 6% share in the US.
Someone might say to you that "as long as you credit Tesla as being anything more than a car company you will puzzle at its overvaluation."
At the moment, the market action in Tesla shares indicates that that part of the market that is necessary to support higher prices in Tesla shares is not only not participating (save for Cathy Wood who propped Tesla up yesterday with an $11MM buy) but that part of the market is actively liquidating its positions.
Even if Tesla is marginally profitable in the energy storage/solar space. This refutes your premise about justifying its valuation as an "energy company"