What is the real reason behind high Tesla stock price

Amazon
Bce658

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Bce658
Nov 13, 2020 17 Comments

I don't understand at all how Tesla could be that high in terms of stock price.

Tesla is very high stock and its car price is high too.
As a consumer, I won't buy a Tesla just because its price is way higher than my expectation.

It looks to me that Tesla is like a fashion product that fans are willing to pay a premium price. Tesla consumers are not consumers but more like product managers or QAs who do not earn salary but pay the company to work there.

If other car companies dare to do similar things, I suspect that government will give them fines.

Also, only rich people or rich middle class can afford a Tesla. For me, I only want to have a car that is 1/10 price of a Tesla.

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TOP 17 Comments
  • Google
    paused.

    Go to company page Google

    paused.
    So having worked @ Tesla, and other automotive companies, I think I can provide some insight into this. I myself am a Tesla shorter so I might be biased and Have blind spots though.

    AFAIK, Tesla’s lineup of potential revenue generating products includes:
    - Tesla cars (can be a 1:1 comparison to other automotive industries); top market cap is 200bil by Toyota
    - Tesla energy and solar (PGE market cap ~25bil)
    - battery manufacturing (assuming 30-40bil market cap)
    - supercharging network (assuming equivalence to Oil and gas ~100bil market cap)
    - Tesla insurance (Allstate has 30bil market cap)
    - autopilot/rideshare (1trillion dollar industry but I’m shorting Tesla at 1bil for their tech as I believe it will never be L4 full autonomous with no driver)
    - Tesla merch and misc. (apparel, Tesla alcohol, etc). (0.5bil market cap)

    Adding up all the above, I can see how Tesla can have a perceived worth of ~400billion dollars not even considering rideshare/autopilot. But keep in mind that these assumptions are assuming that Tesla will be the top in all these different ventures (which is what those who are buying this stock believe, driving up the market cap).

    Now, how long Tesla takes to fully realize all of this is the question mark and is why people are buying this stock in hoards, especially since they’ve “proven profitability”, albeit in very shady ways. I also have a theory that majority of Tesla stock is backed by China and can thus control the market trends of Tesla .. Elon and China have a shady relationship. Right now as it stands though, 90-95% of Tesla revenue is from auto sales which is not saying much in terms of potential of other revenue streams.
    Nov 13, 2020 4
  • Microsoft / Product
    d38sd

    Go to company page Microsoft Product

    d38sd
    10% of a decent Model 3 is $5000. So you want a 10 year old Corolla.
    Nov 13, 2020 5
    • Microsoft / Product
      d38sd

      Go to company page Microsoft Product

      d38sd
      Nothing wrong with frugality. Everyone has their opinion on what they want to spend their money on.
      Nov 13, 2020
    • Amazon
      bzcv67

      Go to company page Amazon

      bzcv67
      Then I guess you’ll end up blaming all the cars for being expensive. Even i want cars to cost around 5k and a good house in Seattle to be around 100k but then I know that won’t happen.
      Nov 13, 2020
  • Netflix
    StarGazzer

    Go to company page Netflix

    StarGazzer
    Have you tried one? To me the performance of M3P is a steal. There’re other information you’re missing is that the tech in the car is fantastic compared to existing other options. Not saying it’s perfect by any means. If you’re not into cars sure don’t buy one. There’re other people buying. They’re still pretty much limited by production volume.
    Nov 13, 2020 0
  • Google
    rowcoo

    Go to company page Google

    rowcoo
    This is a weird post. I think there can be reasonable concern over whether Tesla is overvalued and possibly even wildly overvalued.

    However, the post takes a turn from there and goes into the car prices and suggesting that government should consider fining them for... high prices? Lolwut?

    Not sure what the analogy to employees who pay the company is about, either.

    Maybe you have a bad reaction to the company. That’s fair. But your post is all over the place
    Nov 13, 2020 0
  • HYFN / Product
    aspava

    HYFN Product

    aspava
    Robinhood and milleialls saving money under lockdown
    Nov 13, 2020 0