Tesla has $20 billion cash on hand

webby wrote:

Remember when Rojo and "Henry T Ford" were predicting doom for Tesla's stock before the most recent 1000% run-up, obsessing about how many (low-margin) vehicles GM and VW make, how much better the Bolt was than anything Tesla made, and predicting that the legacy automakers would soon send the upstart Tesla into bankruptcy with their superior manufacturing capabilities.

Well today Tesla took advantage of its soaring stock price to raise an additional $5B, for expansion, by diluting the stock less than 1% -- and they now have enough on cash on hand to buy Nissan outright if they wanted to -- which, of course, they don't.

Well, Tesla is still overvalued a LOT. There are building as many vehicles in a year than Toyota in a couple of days. This is just a huge gamble. Just make sure you don't have money you need in this scam.

Tesla is still trading at over 100x P/E.

As an investor u should know that what has happened in the past is in no way promised to again happen in the future.

Yes Tesla stock has done well, it is no way promised to do so in the future. Tesla still has a lot of work to do on making its batteries more efficient. As an investor u should also know you invest in a company and a business not a stock. You should only invest if the value of the company is below the price and I do not think anyone would tell you that Tesla’s value is below what it is trading at. Maybe it has huge upside but it’s overvalued right now

Tesla would have been bankrupt years ago if it wasn't for mass government subsidies. It's one of the largest recipients of corporate welfare in American history. It's only barely profitable today because of regulatory credits.

ur a yuppie wrote:

Tesla is still trading at over 100x P/E.

As an investor u should know that what has happened in the past is in no way promised to again happen in the future.

Yes Tesla stock has done well, it is no way promised to do so in the future. Tesla still has a lot of work to do on making its batteries more efficient. As an investor u should also know you invest in a company and a business not a stock. You should only invest if the value of the company is below the price and I do not think anyone would tell you that Tesla’s value is below what it is trading at. Maybe it has huge upside but it’s overvalued right now

It took Amazon 14 years to become profitable. This is the business model for true industry disruptors. Right now Tesla is still in it's "Amazon is just an online bookstore" phase.

Every time I think TSLA is overvalued, it runs up another 100-200 dollars per share.

Just wait until 12/18 when it's included in the S&P, all the index funds will be forced to sell funds to purchase Tesla. People are predicting $1,000/share and at this point it's hard not to believe.

Tesla needs to get their production capabilities on par with the big manufacturers and establish a franchised dealer network. The big manufacturers are starting to catch up on EVs. If they are able to catch up to Tesla (they are about 5-10 years behind currently) and Tesla is still doing direct sales without dealers, Tesla will go bankrupt. Vehicle buyers in the US are too used to the franchised dealer system. It is a big enough jump to go from internal combustion to electric. Doing that while also going through the weird direct manufacturer ordering is just two steps too far for consumers in the US. As much as people joke about car dealers, a lot of people develop relationships with their local dealer and are very brand loyal. Tesla will have to develop those same relationships to be able to compete with EVs from other manufacturers.

webby wrote:

Well today Tesla took advantage of its soaring stock price to raise an additional $5B, for expansion, by diluting the stock less than 1% -- and they now have enough on cash on hand to buy Nissan outright if they wanted to -- which, of course, they don't.

....sounds like a real innovative way of buying established companies. Raise money on hope and promise that doesn't make money, use that money to buy something completely different that makes money

Amazing what can happen when you're feeding off the public purse. If Tesla had to abide by the rules of the free market they would have been under around a decade ago. You can love Elon or hate him but you cannot deny he is great at getting the government money.

The federal government had given Tesla billions. Some of this was in loans. Others are in "green" credits and rebates. Without the loans which at the time the free market was not willing to make Tesla would not exist. Without the rebates, Tesla would not yet be profitable. A lot of businesses could have done well with so much government chedder.

Amazon made it to profitability by raising funding on the real market. It was able to convince investors it would be profitable and they paid up based on that belief. This is very common in many start-ups, many aren't profitable for a long period of time and to do multiple rounds of funding to support the growth to that point, although Amazon's was a long period.

Tesla raised money to get to this point through government handouts. No investors were willing to give Elon the money for this a decade ago. This was clearly a choice of Uncle Sam deciding who amongst its friends could be successful. Also, there have been several policies or rebate programs designed to keep Tesla going in more subtle ways. After the disasters in government-sponsored green techs like Fisker, Karma, and Solyndra the government could not afford its poster child Tesla to go under as well.

Musk loves to blow up government money.

Literally.

https://www.nytimes.com/2020/12/09/science/spacex-starship-crash.html?action=click&module=News&pgtype=Homepage

[quote]ur a yuppie wrote:

Yes Tesla stock has done well,

Understatement of the year.

Trading at nearly ten times what it was one year ago.

if it was up 10% or 15% I would say it has done well

Great. Other people are giving Tesla money. I'm happy for Tesla.

webby wrote:

Remember when Rojo and "Henry T Ford" were predicting doom for Tesla's stock before the most recent 1000% run-up, obsessing about how many (low-margin) vehicles GM and VW make, how much better the Bolt was than anything Tesla made, and predicting that the legacy automakers would soon send the upstart Tesla into bankruptcy with their superior manufacturing capabilities.

Well today Tesla took advantage of its soaring stock price to raise an additional $5B, for expansion, by diluting the stock less than 1% -- and they now have enough on cash on hand to buy Nissan outright if they wanted to -- which, of course, they don't.

I didn't really predict doom. I just thought it was amazing how it was valued for so much and now it's gone up 10x from that level and said it's why I hate the stock market.

Elon has been smart to raise money with that high stock price. But check this article out.

Here is the thread you are talking about:

mentos wrote:

Every time I think TSLA is overvalued, it runs up another 100-200 dollars per share.

Just wait until 12/18 when it's included in the S&P, all the index funds will be forced to sell funds to purchase Tesla. People are predicting $1,000/share and at this point it's hard not to believe.

The stock basically runs off of hype and expectations from Elon. They do have some nice potential tech in terms of self-driving cars and batteries that could allow them to expand in other areas, but right now they are a car company priced outrageously high. They’re going to start seeing some more competition in the EV space in the next decade, although I think they’re well ahead of everyone at this point. The stock has gone on a crazy run, but I think it has to correct at some point to bring it more in line with its fundamentals. Anyone’s guess when that will happen though.

Sorry, Rojo. I shouldn't have grouped you with the doomsayers.

I'll admit that the price of the stock is mind-blowing now. Funny that some firms like Goldman, however, are only now recognizing the extent to which Tesla is likely to dominate the EV market, which in turn is likely to dominate the transportation sector.

https://fortune.com/2020/12/06/tesla-stock-tsla-sp-500-outlook-golman-sachs-780-stock-market-spx/

BLM!! wrote:

hey do have some nice potential tech in terms of self-driving cars

Hi. Can you point me in the direction of a self-driving Tesla?

I paid for the fully autonomous mode on my Model S 8.5 years ago and then again when I had to buy new batteries so I sold it for a Model 3. I still haven't seen a self-driving Tesla. What gives?

I bought Tesla in 2016 at around $270/share (around 46B valuation, can't really remember).

And sold in 2017 at around $380/share.

At the time I thought Tesla could in 10 years be worth around 1T. Unfortunately life circumstances made that I had to sell the shares to get cash.

I regret it a lot, I just put around $9000 at the time. Would have been worth >$100,000 today.

I regret it especially because, in my mind, it wasn't a "bet" investment. I really believed in it, I wouldn't have sold it if it wasn't for this life urgency.

So depressed !

Mercedes is working on the autonomous car for decades and others as well.

But Mercedes would never sell it as a self driving car because they know all the complex issues.

Of course Elon Musk doesn't care, he just sells self driving cars to people and watches what happens next.

https://www.politico.eu/article/delf-driving-car-born-1986-ernst-dickmanns-mercedes/

https://www.vox.com/recode/2020/2/26/21154502/tesla-autopilot-fatal-crashes

webby wrote:

Sorry, Rojo. I shouldn't have grouped you with the doomsayers.

I'll admit that the price of the stock is mind-blowing now. Funny that some firms like Goldman, however, are only now recognizing the extent to which Tesla is likely to dominate the EV market, which in turn is likely to dominate the transportation sector.

https://fortune.com/2020/12/06/tesla-stock-tsla-sp-500-outlook-golman-sachs-780-stock-market-spx/

Pulling numbers out of you know where