Slashdot Mirror
Tesla Tops GM by Market Value as Investors See Musk as Future (bloomberg.com)
Tesla became the largest U.S. auto maker by market value on Monday, overtaking General Motors -- a feat that would have seemed highly improbable 13 years ago when the electric-car maker first began tinkering with the idea of making a sports car. From a report: Tesla climbed as much as 3.4 percent in early Monday trading, boosting its market capitalization to about $51 billion. The company was valued at about $1.7 billion more than GM as of 9:35 a.m. in New York. The turnabout shows the extent to which investors have bought into Musk's vision that electric vehicles will eventually rule the road. While GM has beat Tesla to market with a plug-in Chevrolet Bolt with a price and range similar to what Musk has promised for his Model 3 sedan coming later this year, the more than century-old company has failed to match the enthusiasm drummed up by its much smaller and rarely profitable U.S. peer. No matter, say investors who like the stock. Tesla is a technology player with the ability to dominate a market for electric cars and energy storage. To those same investors, GM and Ford are headed for a slowdown in car sales that will erode profits. "Is it fair? No, it isn't fair," Maryann Keller, an auto-industry consultant in Stamford, Connecticut, said of GM ceding the market-cap crown. "Even if Tesla turns a profit, they will eventually have to make enough to justify this valuation."
If you made money on it, good for you. The company is grossly overvalued. Get out while you can.
Nissan are in danger of missing the boat too. The Leaf is a great car and they have done a lot to get people driving EVs, especially in Europe. The problem is that circumstances have kind of screwed them - Tesla's Model 3 is looking unbeatable right now, so far ahead of anything anyone else can offer it's stunning. That big screen, full self driving if not from day one fairly early in its life, and best of all software updates in an age when most manufacturers can't keep the sat nav up to date.
On top of that they build the Leaf in the UK, and the UK plant's future is uncertain due to Brexit. It seems like they held back with the new model because of these things, hoping to release it with their ProPilot tech which isn't even as good as Telsa's auto-pilot was at release (doesn't work at low/high speeds, can't even change lanes by itself etc.)
Really sad because they could be a big player. They just need to get the next Leaf right but don't appear to have the tech to keep up with Tesla, and when the Model 3 comes along the ~40kWh car with old tech is not going to cut it at the 30k price point.
const int one = 65536; (Silvermoon, Texture.cs)
SJW, n: "Someone I don't like, and by the way I'm a fuckwit" - AC
Tesla has cars on the road, it's not vaporware company. His other companies are also progressing with their goals too.
If you want to talk about something that took a lot of people's life savings and that was completely legal, let's talk about the fucking banks. Not only did they ruin people's lives but they also got more money for bailouts. Banks, the very place that's supposed to be about managing money, fucked everyone and got more money on top of that. I wonder why the people at the top didn't get the firing squad.
#DeleteFacebook
>I wonder why the people at the top didn't get the firing squad.
because they are in control of the single american party.
Different people have different reasons for hating on Electric Vehicles. The Petrocar dealerships are threatened because a large part of their revenue stream is based on post-sales service. And the electric car is a hellava lot less prone to the little issues that hit petrocars.
Many Politicians hate Electric Vehicles because tax revenue from petro sales goes down, and those taxes are easier to hide while railing against other taxes. A lot of people have severe inertia issues. "If leaded gas was good enough for Grandpa, it's good enough for me." Anything new is anathema.
And some people are just plain nuts. How are we gonna go "coal rolling in an EV? https://en.wikipedia.org/wiki/... Where these insane idiots like to do this when they see an Electric vehicle or hybrid.
It is just going to take time for the normal people, and the actuarial tables for the lunatic fringe to die off - probably via black lung or COPD for the coal rollers - and EVs will take over just like Petrovehicles took over from the horse and buggy.
The shepherds did so well protecting the flock that the sheep no longer believed that wolves existed.
The Model 3 will have to be judged when it releases. Whether Tesla can really fare better than the traditional automakers when faced with having to support sales of 3 million or cars or more annually is *very* far away. It's much easier to do a lot of these things when you sell on the order of 50k vehicles a year compared to 3 million a year that the likes of GM and Nissan have to deal with.
XML is like violence. If it doesn't solve the problem, use more.
Tesla "worth" $51 billion? Pfft. Back in the dot bomb bubble days AOL was "worth" $224 billion, now it's under $5 billion. We'll see how Tesla holds up.
I'm trying to find the current backlog for Tesla cars and it seems to be somewhere north of 400k vehicles with close to a billion in deposits for the orders. Nobody else has that kind of traction (if you'll excuse the pun) for current, announced or planned vehicles - in comparison, in 2016 Mercedes sold 374k vehicles in the US.
Yes, the investors are taking a risk on Tesla, but isn't that part of the job description?
Along with this, there seems to be a significant demand for electric vehicles. I don't expect them to overtake fossil fueled vehicles any time soon, but at least 10% of buyers are seriously interested in EVs and Tesla is the number one name there with generally great reviews for products compared to the competition (ie the Leaf makes you feel like you're settling for less and the Volt/Bolt just don't have the cachet), the company is serious about renewables/reducing customers' carbon footprint and a rock star CEO.
You can say it's a fad stock, but there are some solid fundamentals there in terms of backlog and customer demand which justify a high stock price.
Maybe if the Model 3 turns out to be a lemon, things will change with regards to the stock, but as I said, part of the job description for an investor is to take risks and people seem to think that there will be a reward at the end of the day.
Mimetics Inc. Twitter
The valuation on Tesla is insane, just like all the 'unicorn' ones, investors obsessed with new and novel behaving irrationally.
Exactly.
Tesla's P/E ratio is... non-existent.
GM's P/E ratio is 5.7 and their dividend yield is 4.46%. GM's If investors had *any* sense, GM's P/E ratio would be 16, which would make it's market cap $141.6B, and Tesla's market cap would be around $10B.
Honestly, obsessing about market cap is *stupid*.
"I don't know, therefore Aliens" Wafflebox1
Musk has sold investors on a vision. He now has to deliver profits. That's the problem for Tesla.
Yet Nissan sells more electric cars than Tesla and has been doing so for a while.
No they don't. They sell more cars with an electric drive train somewhere in the chassis. The Leaf which is Nissans only all electric car with any kind of sales figures is the best selling EV in the world behind the Tesla Model S.
Which is saying something given the insane price and performance differences.