Tesla Market Capitalisation grows by $140bn in One Day

[Bobby Dazzler]

I'm not sure that's entirely the case.

ISTR Daimler invested significantly in Tesla (and have since divested themselves of that investment) and also acted as a "parts bin" supplier to them. That was no accident, IMO.

Absolutely not an accident. Just like Aston Martin.

 

[Bobby Dazzler]

I don’t think Musk wants to be in the car manufacturing business, he used the cars as a vehicle (see what I did there) to develop the technology for established manufacturers to buy, and get out whilst the potential exceeds the reality. All IMHO.

 

[clk320x]

I’m no expert but I think what Elon Musk has achieved is highly commendable, he took a gamble and has created a brand that shook up the car market. For me Tesla will be always be the original EV. The first that was practical to use daily with little ‘range anxiety’ due to the heavy investment in the charging infrastructure alongside the cars… which other EV manufacturer owns and operates thousands of chargers worldwide? Elon saw the issue with charging infrastructure and again went out to try to solve it.

I think most would agree if it weren’t for Tesla other brands wouldn’t be rushing to make EVs..

Anyway… the above is why I own a Tesla which I use daily for long & short journeys. I have no regrets, especially with current diesel prices..

 

[clk320x]

I don’t think Musk wants to be in the car manufacturing business, he used the cars as a vehicle (see what I did there) to develop the technology for established manufacturers to buy, and get out whilst the potential exceeds the reality. All IMHO.

Possibly they may be a supplier of battery tech & operate charging infrastructure..

The cars are pretty damn good though IMO.

I think Tesla is here to stay. Not to forget the Autopilot tech which is constantly improving and seems to be leagues ahead of the opposition. I actually use the autopilot in mine most journeys.

 

[Bobby Dazzler]

Possibly they may be a supplier of battery tech & operate charging infrastructure..

The cars are pretty damn good though IMO.

I think Tesla is here to stay. Not to forget the Autopilot tech which is constantly improving and seems to be leagues ahead of the opposition. I actually use the autopilot in mine most journeys.

I agree on all counts.

 

[MikeInWimbledon]

After announcing 2021 Q4 production and deliveries numbers, Tesla gained $140bn in market capitalisation in one day. To put that into perspective, that is more than the total $131.4bn market capitalisation of VW.

And Tesla share owners have lost $111 billion in two days since that peak, as the markets offloaded tech stocks after realising the Omicron crisis isn’t as bad as was hyped.

Tesla shares are still falling.

 

[Dickster]

I’m no expert but I think what Elon Musk has achieved is highly commendable, he took a gamble and has created a brand that shook up the car market. For me Tesla will be always be the original EV. The first that was practical to use daily with little ‘range anxiety’ due to the heavy investment in the charging infrastructure alongside the cars… which other EV manufacturer owns and operates thousands of chargers worldwide? Elon saw the issue with charging infrastructure and again went out to try to solve it.

I think most would agree if it weren’t for Tesla other brands wouldn’t be rushing to make EVs..

Anyway… the above is why I own a Tesla which I use daily for long & short journeys. I have no regrets, especially with current diesel prices..

I agree, what he has done is incredible.
However, without legislation Tesla would not be where there are today. Imho

 

[Skd884]

And Tesla share owners have lost $111 billion in two days since that peak, as the markets offloaded tech stocks after realising the Omicron crisis isn’t as bad as was hyped.

Tesla shares are still falling.



View attachment 122467

Folks love highlighting the decline of a equity, why not discuss the 28,236.46% all time gain and give credit where it is due?

 

[E55BOF]

I wish I'd bought Tesla shares in the early days, but I wouldn't say the same about their cars, either then or today...

 

[Dryce]

Folks love highlighting the decline of a equity, why not discuss the 28,236.46% all time gain and give credit where it is due?

Credit to whom?

What is the PE ratio on Tesla.

How many vehicles and what margins will it have to make in order to deliver a return based on operations and earnings to investors to match its valuation - as opposed to attracting sales of shares?

What is its underlying value (as opposed to any invented value in the market?)

 

[Bobby Dazzler]

I wish I'd bought Tesla shares in the early days, but I wouldn't say the same about their cars, either then or today...

Buying in Summer/Autumn 2019 would have been the sweet spot in terms of benefitting from the share price increase - it has shot up since then.

 

[Skd884]

Credit to whom?

What is the PE ratio on Tesla.

How many vehicles and what margins will it have to make in order to deliver a return based on operations and earnings to investors to match its valuation - as opposed to attracting sales of shares?

What is its underlying value (as opposed to any invented value in the market?)

To me if you like, i own a few shares.

Thank you

 

[PXW]

I did consider buying some Tesla stock when I bought my Tesla in autumn 2019, but thought I was sufficiently exposed to the company having put the money into the car itself. It’s on my growing list of “good investments I considered but didn’t make”. Allowing for the 5-1 stock split in 2020, the £10k I considered investing would have been worth not far short of £1m now.

Worth remembering that in the financial struggle to launch the Model 3, Musk offered the company to Apple for about $40bn. They didn’t even return his call.

 

[MikeInWimbledon]

Folks love highlighting the decline of a equity, why not discuss the 28,236.46% all time gain and give credit where it is due?


View attachment 122468

This thread is specifically about the $140 billion one day growth in a Tesla’s value: more than the entire valuation of VW. See the OP’s opening post.

I highlighted that the speculative growth had been reversed by three paragraphs in those Fed minutes from December which were published yesterday.

 

[MikeInWimbledon]

What is the PE ratio on Tesla.

Without getting too technical, the simple P/E is at the bottom of the chart I posted: a P/E of 353.

(It’s more complicated than that, as all ratios are adjusted by analysts to iron out accounting oddities, but it gives you the broad gist)

 

[E55BOF]

Can we assume that a P/E ratio of 353 is remarkable, but not in a good way, and indicative of a huge bubble?

 

[MikeInWimbledon]

Can we assume that a P/E ratio of 353 is remarkable, but not in a good way, and indicative of a huge bubble?

Broadly the global industry runs at a median Price / Earnings ratio of 10, so the Tesla share valuation is 35 times that of the industry as a whole.

The private share owners who have pushed the price up this high would argue that it's an option on the future performance of the company, which they believe can only improve its profitability as production volumes increase.

To state the obvious, the market price of a share is always the price that people will buy and sell at a point in time.

Except in a takeover it's not an indicator of what ALL the shares are worth. (Even in a takeover it's not usually cash for all the shares, more likely just a swop for shares in the new merged company)

If Teslas mainly private owners decide to crystallise their gains and turn their stock into cash, the price could "move" quite quickly.

 

[Deleted member 126251]

I wish I'd bought Tesla shares in the early days, but I wouldn't say the same about their cars, either then or today...

Hindsight is great. I wish I’d purchased the $100-00 of Bitcoin that I’d considered 10 ish years ago.......... My wife still berates me

everytime the word Bitcoin comes up........

 

[mioba]

Hats off to Musk IMHO, he faced huge challenges early on and kept to his plan and now look at him, he perservered with something totally off the cuff, a bit like Apple, almost dead but created a new frontier.

Regarding shares (and Apple), I worked with a Chinese student 20 years ago doing my phd, he spent more time glued to yahoo finance and on the phone to a stockbroker than doing any work, in his husky Chinese voice "You must buy shares in Apple, I tell you one day they will be huge", he would tell me this for the three years I knew him, I think about all the time Apple breaks another financial record, ahhhh well.

 

[Petrol Pete]

Like the bloke who (allegedly) paid a handfull of Bitcoin for a pizza all those years ago