It’s balanced, the sector is maturing beneath them, but their lineup is still good with the Y coming out this year and the roadster due out in 2020. So I don’t buy that the lineup is stale. That said, the space is getting competitive and the days of easy large margins are gone. They showed they can be profitable in recent quarters, their autopilot is awesome and when you compare real stats, Tesla still has the best products in the space, but gigafactory Shanghai will eat cash for the near term (hence the raise). Having that kind of China and broad Asia exposure is a big positive, but again, I think the industry is becoming more of a competitive mid to low margin space and expectations are more realistic. I don’t feel there’s a strong case for large upside or downside from here at this point.
Model Y = Model 3 with lift kit. Roadster is not a mass market car.
They had a profitable quarter during the release of the car then it went to shit. Ohai makes a good point that there might not be as big recurring demand once the purchase is made. Personally I want a Tesla but nothing wrong with my Benz. Also I just don’t want to buy an electric car that might depreciate in value as most have a habit of doing so. I want to see how the used market performs. I want to see if their brand remains high. I just don’t like new things that are unproven!
That’s a silly oversimplification. The design and manufacturing are completely revamped and the performance improves, they’re constantly rolling out battery upgrades and better tech. Is it similar? Yes, but we already know EV’s have far less moving parts. If this is a stale lineup you can literally make that argument about every auto producer. 2020 Explorer just old explorer with more aluminum, vehicle XXX just YYY with ZZZ. I get that the market is reaching a near term plateau on saturation and I agree with broad parts of your view of the risk (why I’m not still super bullish) but I think it overstates the downside and completely ignores ongoing upside.
But the bolded section is exactly why there will be future sources of demand. Those drawbacks will all abate over time as holdouts get more comfortable. The structural move to EV’s is real, it has however, reached a near term plateau between the early adopters and the wait required for holdouts to start migrating. The other risk is that the industry is maturing and competition is stepping up. So I don’t see this stock going significantly down, they still have an industry position and product line that is the envy of their peers with real lasting tech advantages (moats) and more experience in the EV arena, but going forward they’re going to be increasingly competing on price which won’t be great.
BS just calling people silly again. That’s when he goes off the cliff and conversation is no longer productive. See you.
I actually called the oversimplification silly, which is hardly going off a cliff or unproductive. And people call me sensitive… yeesh.
For the record, if you don’t have a strong counterpoint you can just say so, no need to throw around a bunch of hyperbole, make a personal attack then pick up your ball and go home.
i agree that demand will be greater. but will comp intensify to the point that they wont make money since they have to constantly innovate. anyways hopefulyl they do well. im a big fan of tesla and musk from a consumer standpoint. the hope for the majority of these tech cos is to be like amazon! profitless at start. but a cash cow in the future!
if the Taycan does well (I think so), I think Porsche will be the one to watch. Very profitable automaker, with a very loyal following, some of the best R&D, who has successfully entered into new segments (suv cayenne and Macan, sedan, panamera).
I have no doubt Porsche and BMW will be early leaders, probably VW too. There’s also a slew of state backed Chinese brands with cars like the Nio ES6 waiting to take share. In 20 years, we’ll be recalling to the younger generation how Chinese cars used to be looked down on, the way our parents told us Japanese cars were originally not viewed well. China is very highly focused on this and building future world champions. In the near to mid term (next 3-5 years) Tesla has major quality, experience and self driving advantages that I think will ensure they have a leadership position in the west. That said, I agree with the margin concern, margins are going to get thinner and more auto like, so the path to any significant upside looks a little doubtful.
But the robotaxis!
that was the future until president trump came saw and conquered. anyways the pivot by tsla to automation is interesting. i really hate driving and the cost of owning a car. would love automated cars to be a reality.
It actually hit $420 yesterday… I’m impressed.
I have never put in any effort to understand Tesla. But the divergence in opinions is crazy to me. Guess I’m too used to banks where stuff is more tame.
stock price be lit
Musk’s state-backing ran out, so now he’s got to go to China to stay in business.
Why this stonk keep going up? Please advise, tanks.
Throwback to when this guy was too busy regurgitating hype headlines and calling TSLA going to zero to see the obvious.
Well, he got one thing right at least!
This company straight up murdering the shorts.