What is the real reason behind high Tesla stock price
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.
comments
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.
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