Tesla Market Capitalisation grows by $140bn in One Day

[Fununcle]

I meant stuck in traffic in freezing or baking hot weather you would need to run the heaters, climate control.

Do an ice cars heater or Airton work without using fuel?

 

[Dryce]

Do an ice cars heater or Airton work without using fuel?

When the stop/start kicks in when stationary on a cold day then the fan is still required to circulate heat - but the heat is ususally residual.

On a warm day my car still circulates cold air when the engine stops at a junction - but again that's likely to be residual - the engine will be started while stationary fairly quickly.

My take is that ICE vehicles probably have the advantage on that cold day because of the waste residual heat from the engine that will last several minutes. And for aircon it depends on implementation and how long you are stationary - there may be an advantage for a short duration if the EV keeps its aircon active (simply because it can) whereas the ICE cops out initially by using residual 'coolth' simply because it can't run the aircon without the engine on.

 

[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.
Fun fact: That gain values each Tesla car delivered at more than one million dollars.
Utter lunacy.

Just thought I'd revive this thread, six months on, to see how things have gone.

The thread is called "Tesla market cap grows $140 billion in one day."

Lets rename it, using round figures: "Tesla market cap loses $600 billion in six months."

A billion here, a billion there. Pretty soon you're talking big money.

 

[MikeInWimbledon]

 

[MikeInWimbledon]

With all due respect to Tesla, they are just a part of the tech losses this Summer.

It's just that Tesla seemed more visibly leveraged than the rest.

(That market cap of $1.2 trillion suggested a valuation of $600,000 for each of the 2,000,000 cars that they had delivered over their entire existence, or $1.2 million for each car their salespeople sold in 2021 )

 

[Harrythedog]

Tesla is a rather odd outfit.
The more cars they sell the less valuable the company gets

 

[st13phil]

Tesla is a rather odd outfit.

Tesla is a bit of a cult. Once the reality of trying to make money out of manufacturing cars in volume kicks in, the gloss will disappear.

 

[Skd884]

The whole stock market is in a downtrend, perfectly normal and was due.

 

[BigJase88]

I find Tesla's very boring.

Like somebody sketched a blob and went yeah that'll do

 

[Jobsworth]

Tesla is a bit of a cult. Once the reality of trying to make money out of thin air kicks in, the gloss will disappear.

Efa

 

[st13phil]

Once the reality of trying to make money out of thin air kicks in

Actually, they’ve been making good money out of thin air, or “projections” as they’re called. Making money from manufacturing is much more challenging.

 

[MikeInWimbledon]

Part of the Tesla success story was that the USA, EU and China created a “carbon credit” system which forced the big car companies to make EV’s and reduce the carbon emissions of new cars sold.

Which is fine, but this gave Tesla credits which they could then sell to their competitors so that they could avoid these environmental penalties.

It’s an unbelievable story, but the profits are outlined here:

What 'regulatory credits' are — and why they're so important to Tesla

 

[MikeInWimbledon]

To be fair to Tesla, it’s not just them who have had a kicking this summer. Microsoft and Amazon have taken a tumble.

And then there’s the “gig economy” delivery and transport services which have lost three quarters or half of their value.

 

[MikeInWimbledon]

And the falling knife (you don’t try to catch) that is cryptocurrency such as Bitcoin. - which has also halved

 

[st13phil]

It’s an unbelievable story, but the profits are outlined here

Tesla's past is littered with money effectively being gifted to it through subsidies, tax allowances and carbon offset schemes.

All credit to Musk for taking advantage of legislation that has given him the opportunity to do it, and undoubtedly the more savvy and institutional investors are well aware of the "quality" issues that therefore surround Tesla's profits, but I'm not sure the substantial number of more naïve "retail" small investors do understand the significance and therefore risk that it has allowed to be stored up.

 

[MikeInWimbledon]

“Gigantic money furnaces burning billions of dollars” is how Elon Musk has described his new factories in Texas and Germany at a recent Tesla Owners meeting.

Wow, who knew that setting up car factories in a hurry could be complex, and full of battery manufacturing and environmental control issues, or that German Unions could be problematic and slow to adopt new and amended practices ?

Musk laments costs of Berlin, Texas Tesla factories

“Schadenfreude?” Not really. Just surprised to hear a CEO talking down his business so firmly.

 

[Harrythedog]

“Gigantic money furnaces burning billions of dollars” is how Elon Musk has described his new factories in Texas and Germany at a recent Tesla Owners meeting.

Wow, who knew that setting up car factories in a hurry could be complex, and full of battery manufacturing and environmental control issues, or that German Unions could be problematic and slow to adopt new and amended practices ?

Musk laments costs of Berlin, Texas Tesla factories

“Schadenfreude?” Not really. Just surprised to hear a CEO talking down his business so firmly.

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Another Gerald Ratner moment perhaps ?

 

[MikeInWimbledon]

Like Pets.com, Enron, CMGI, Hewlett Packard, AIG, RBS / ABN Avro, LTCM, MicroStrategy, Nokia and AOL,

it's impossible to see how Tesla could possibly fail.

A fantastic performing company that owes its amazing performance to one man,

and some very dubious accounting, audit, regulatory and tax techniques,

that all can see.

Well it’s been a fun year.

Two thirds wiped off Tesla’s share value, with more to go when Musk cashes in some more of his enormous personal holding.

 

[Skd884]

Long term holders are laughing +10,000%

 

[MikeInWimbledon]

Long term holders are laughing +10,000%

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Yes, that tiny group of long term, 10 year, holders, have seen 20 fold growth, but anyone who has bought since the pandemic has taken a Bath.

As this thread has discussed, at length, will Tesla’s silent IPad golf carts be as popular once the traditional car manufacturers copy its tech, and as governments weaken their tax incentives to buy its EVs ?