TSLA is down about 30% from 6 months ago, and down about 18% from 1 month ago.
But, it’s still MASSIVELY overvalued.
The typical, basic way to value a stock is with its P/E ratio. The price of the stock compared to its earnings per share. Even after this “bloodbath”, Tesla’s P/E ratio is approximately 175.
What’s a P/E ratio for a typical well run car company? Toyota’s P/E ratio is approximately 10. GM’s P/E ratio is about 35. Mercedes-Benz is at about 9.
Tesla just had a disastrous earnings report. The Cybertruck was the least successful automobile ever produced. The man most associated with the Tesla brand is toxic to the left, and the people who might want to buy a pricey EV are mostly lefties. To me, the highest Tesla’s P/E ratio should be at this point in time is maybe 10. To achieve that, its price would have to be approximately 1/20th of what it currently is. It would have to lose 95% of its current value. And, that would just be treating it as a reasonably well run car company that maybe had an off quarter.
Looking at it another way, Tesla sold approximately 1.5 million vehicles last year. Toyota sold about 10 million. If investors were sane, Toyota would be valued at approximately 7x Tesla’s value. Instead, Tesla is valued at $1.2 trillion, but Toyota is valued at only $200B.
Right now, 1000 shares in Tesla would cost you about $300,000 USD. If someone offered to sell me 1000 shares for only $3000 USD, on the condition that I couldn’t sell them for 10 years, I wouldn’t buy them, even at a 99% discount. I honestly don’t think Tesla is going to exist in 10 years.
Reports like this need to include a history graph, we have been through this before, and people got excited for very little reason while musk continued to swim in money
https://www.macrotrends.net/stocks/charts/TSLA/tesla/stock-price-history
Lol. Lmao even.
He should have just stuck with making cars. He should have kept it as “Tesla Motors” instead of changing it to “Tesla” and made a separate company for making robots or whatever. He should have had an option for cheaper cars without any self driving bullshit. He should have used lidar. He should have just stayed off social media entirely and enjoyed being the richest person who ever lived. He shouldn’t have been a nazi.
it’s a glaring example of how money cannot buy friends. any real friend of musk would have gotten him to open his eyes to the damage he caused at each turn - what a sad sack of shit
He’s probably the best example we have that we don’t live in a meritocracy
I think there are even better examples in the white house
🍿 That’s a shame.
the company’s gross profits dropped as operating expenses climbed far quicker than revenue, in large part thanks to AI-related capital expenses
Glorious. Just glorious.
Good. Deserved.
But, but, but, SpaceX stock!
That would explain the $2000 loss on my retirement account balance this month.
You shouldn’t invest in meme stocks.
Unfortunately, retirement accounts typically dont give you the choice.
In many cases you don’t have a choice. They weaseled their way into index funds and your employer gives you limited options.
I switched most of my 401k to international ETFs last year and have seen good growth there
The elephant in the room during this week’s call was the long-rumored possibility of Musk merging Tesla and SpaceX — a doubling down on his portfolio that could set up some of the most unbelievable financial drama in economic history.
Still way over what it’s realistically worth, I’m sure.
Ha ha ha lol.
WHEEEEEEEE!
nice
