Tesla Market Capitalisation grows by $140bn in One Day

[MikeInWimbledon]

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Yes, Cathie Woods’ ARKK fund is at a new five year low, having lost 80% of its value this last year.

Cathie Wood's ARKK hits a new 5-year low | Seeking Alpha

On the other hand, Cathie believes that Bitcoin will reach a million dollars a pop by 2030

Honestly, she really does….

Bloomberg article here: Bloomberg - Are you a robot?

 

[Skd884]

Buy when there is blood on the streets.

 

[Bobby Dazzler]

The way that many of the very rich get richer is by buying towards the end of the period when everyone else is selling. For a long term strategy you don’t need to hit the top or bottom of the market, just close.

 

[MikeInWimbledon]

The way that many of the very rich get richer is by buying towards the end of the period when everyone else is selling. For a long term strategy you don’t need to hit the top or bottom of the market, just close.

Exactly.

Technicians will point out that there's barely any volume done at the top, or at the bottom. Think of it as big dipper, the volume is done in the middle of a move in either direction, not at the turn. So the time to be trading is at the shoulder, not at the peak or bottom.

The challenge with Tesla is in working out whether it's a cycle in the values, as happened with Microsoft , or whether it's the end of the hype, as happened with Pets.com, Boo.com and AOL.

 

[Bobby Dazzler]

I believe that Tesla will continue to be a strong player in the market, the share price is just normalising to it’s natural level.

 

[Skd884]

Forget tesla small/microcaps is where the big £ is made.

Avct bsfa tgr hmi shg - let's see as time passes

 

[MikeInWimbledon]

I believe that Tesla will continue to be a strong player in the market, the share price is just normalising to it’s natural level.

Two points: The Tesla share value is still a long way from "natural" or "normal."

With a market cap of $440 billion, it's still two and a quarter times the market cap of the world's biggest motor manufacturer, Toyota. A firm which sells ten times as many cars as Tesla (10 million rather than one million) and which is genuinely profitable, as motor manufacturer, over the long term, unlike Tesla.

No-one would suggest that Tesla will disappear, just that the share value look destined to drop back to more normal levels.

And are you sure that there couldn't be a significant "merger" with another motor manufacturer?

The Porsche "acquisition of Volkswagen" and then the subsequent vice versa comes to mind.

Volkswagen is more than capable of "integrating" Tesla into its product line along with Bentley, Lamborghini, Audi etc etc, at the right price. Or perhaps vice versa.

The long, winding road to Volkswagen's Porsche IPO

 

[st13phil]

...and which is genuinely profitable, as motor manufacturer, over the long term, unlike Tesla.

I would be fascinated to see the underlying profit (or more likely loss) per vehicle manufactured by Tesla once all the extraneous carbon credits income and other tax breaks are stripped out. That is what should define its ongoing value, as it has for mature automotive companies such as GM, Ford, VW, Toyota, Honda, etc. for decades.

 

[DrNick]

Buy when there is blood on the streets.

Sometimes when there is blood on the streets, the victim bleeds out....

 

[Bobby Dazzler]

Two points: The Tesla share value is still a long way from "natural" or "normal."

With a market cap of $440 billion, it's still two and a quarter times the market cap of the world's biggest motor manufacturer, Toyota. A firm which sells ten times as many cars as Tesla (10 million rather than one million) and which is genuinely profitable, as motor manufacturer, over the long term, unlike Tesla.

No-one would suggest that Tesla will disappear, just that the share value look destined to drop back to more normal levels.

And are you sure that there couldn't be a significant "merger" with another motor manufacturer?

The Porsche "acquisition of Volkswagen" and then the subsequent vice versa comes to mind.

Volkswagen is more than capable of "integrating" Tesla into its product line along with Bentley, Lamborghini, Audi etc etc, at the right price. Or perhaps vice versa.

The long, winding road to Volkswagen's Porsche IPO

I agree it’s not at it’s natural value yet, it’s in the process of normalising.

Both Toyota and Daimler held fairly significant stakes for a while, but divested some time ago. A merger may be possible but I suspect that it’s unlikely any time soon.

Whilst Tesla is over valued and likely to fall, then it’s unlikely that major shareholders of any major car manufacturer is likely to vote for a merger unless there’s a very compelling reason for both parties, eg they have an uncertain future due to underinvestment in EVs, and they have something Tesla really want. Perceived quality is their obvious “gap” but Tesla could have easily resolved that had they wanted to by acquiring people with experience (which they already do) rather than acquiring businesses.

 

[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.

12 months on, where are we after the announcement of 2022 Q$ product and delivery numbers ....

Oops ! Lost $1.3 trillion in market cap since then.

Hey ho, some you win, some you don't.

 

[Skd884]

 

[Bobby Dazzler]

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Is this something g to do with hitting 2022 average fleet emissions targets? That might sound irrelevant to a car company that doesn’t make ICE cars but if I remember right Tesla did deals with traditional car makers to pool their offset credits in exchange for cash. Maybe they registered a load of cars in September and now need to offload them.

 

[Dippo]

Tesla have reduced the price of the Model 3 by 16% in the UK. Apparently owners aren't happy!

Tesla price cuts crank-up used values pressure and trigger 'ill-feeling' among customers

Tesla has triggered "ill-feeling" among customers and cranked-up pressure on residual values with the decision to slash its elelctric vehicle (EV) prices across the US and Europe.

www.am-online.com

 

[st13phil]

Apparently owners aren't happy!

I was going to make the observation that it'll do wonders for residuals, but it looks like the media has beaten me to it.

 

[MikeInWimbledon]

A blow for the smugerati, but good news for anyone wanting to buy a used Tesla, Leaf, Mini, Hyundai.....

All driven by Tesla sitting with unsold stock at year end and a depressing order pipeline, thanks to that glorious competition from Asia.

The bad news: charging is expensive outside the home (more than fossil fuel).

The good news: charging is a bargain at home and essentially untaxed - for the moment.

(Oh, and your pension pot is probably doing quite nicely in 2023 after last year)

.

 

[st13phil]

All driven by Tesla sitting with unsold stock at year end and a depressing order pipeline, thanks to that glorious competition from Asia.

Yup, Elon's learning some hard lessons about automotive manufacturing.

 

[MikeInWimbledon]

Yup, Elon's learning some hard lessons about automotive manufacturing.

Yup, he's down to his last $150 billion.

But then he never really did say that he wanted to be worth $300 billion, it was "The Market" that was that daft.

.

 

[st13phil]

Yup, he's down to his last $150 billion.

Always reminds me of the old adage:

Q: How do you become a millionaire running an airline?

A: Start out as a multimillionaire.

 

[K80]

So a good time to buy Tesla shares?