Tesla shares buckle due to concerns over weakening demand for its cars

mylesillidge

mylesillidge

Journalist
Joined
Jul 29, 2021
Messages
1,008
Concerns over weakening Tesla demand in early 2023

Tesla Inc. shares kicked off the new year on an ominous note, buckling this week under renewed concerns about weakening demand for its electric cars, and sending its market value briefly below Facebook parent Meta Platforms Inc.’s for the first time in over a year.

The Elon Musk-led EV maker’s shares fell as much as 7.7% to $101.81 (R1,742) in early trading on Friday.
 
A

Arthur

Honorary Master
Joined
Aug 7, 2003
Messages
26,879
I posted this elsewhere, but it's more relevant here. Some ad rem comments in the latter half on Tesla's future and market valuation.

 
rvZA

rvZA

Honorary Master
Joined
Jan 3, 2021
Messages
16,572
These cars are not going to work anywhere in the world. They are too expensive. They are impractical. Elon saw a gap in the market. He took it. He made a crazy amount of money. He can now allow it to die.
 
Johand

Johand

Expert Member
Joined
Jan 21, 2005
Messages
2,179
“When you see a train wreck like this, it is better to stand back and observe, not jump in.”
Click to expand...

Wow. Maybe the share is overvalued but Tesla is far from a trainwreck.

Their profit margins are probably the best in the business. They are profitable ($3B in free cash-flow). They have a healthy amount of cash ($21B). They ramped up from tens-of-thousands of vehicles to millions of vehicles seemingly overnight. Unlike Toyota and VW they don't have a mountain of debt. And their sales are limited by how many cars they produce, not by the market.

Not the biggest fan of Elon, but the fundamentals of Tesla are insanely strong. Was it worth as much as it was valued -- maybe not. But is it a train wreck -- hell no.
 
S

sox63

Executive Member
Joined
Jan 23, 2007
Messages
8,708
Johand said:
Wow. Maybe the share is overvalued but Tesla is far from a trainwreck.

Their profit margins are probably the best in the business. They are profitable ($3B in free cash-flow). They have a healthy amount of cash ($21B). They ramped up from tens-of-thousands of vehicles to millions of vehicles seemingly overnight. Unlike Toyota and VW they don't have a mountain of debt. And their sales are limited by how many cars they produce, not by the market.

Not the biggest fan of Elon, but the fundamentals of Tesla are insanely strong. Was it worth as much as it was valued -- maybe not. But is it a train wreck -- hell no.
Click to expand...
The fundamentals you’re talking are great for a value stock, but Tesla has always been a growth stock, and when that growth shows signs of slowing, the price will correct itself, which is what we’re seeing I think.
 
Johand

Johand

Expert Member
Joined
Jan 21, 2005
Messages
2,179
sox63 said:
The fundamentals you’re talking are great for a value stock, but Tesla has always been a growth stock, and when that growth shows signs of slowing, the price will correct itself, which is what we’re seeing I think.
Click to expand...

Having the fundamentals of a value stock but massive potential to grow? Their biggest limitation is manufacturing enough cars. They haven't even launched world wide, nor have they launched in the pick-up segment in the US.

Look things my fall apart, but I will not bet against Tesla any time soon.
 
system32

system32

Executive Member
Joined
Dec 29, 2009
Messages
5,646
Arthur said:
I posted this elsewhere, but it's more relevant here. Some ad rem comments in the latter half on Tesla's future and market valuation.

Click to expand...

Here is a better video with more context on "carbon bombs"
 
You must log in or register to reply here.
Top