Tesla stock is high right now, it's market cap is $20 billion. To obtain a P/E ratio of 20, they will have to earn $1 billion. It ain't going to happen anytime soon. Their revenue is only about $1 billion. I would look for short opportunity. It happened to Apple and it will happen to Tesla.
Short them at your own risk. Some people had been saying the same thing ever since the stock was around 30. Tesla is selling some ZEV California credits to other automakers. They have been making some money off these credits and have guidance stating they expect no money from these credits in the fourth quarter. The stock is behaving more like a technology company than an auto company. Some feel this is appropriate, some don't. Frankly, I would not bet against the man who is launching cargo to the ISS, making a positive margin on EVs, building up his own supercharger infrastructure because the government is doing so, etc etc. But if you want to be on the wrong side of the next short squeeze, by all means
Timely discussion of Tesla on Yahoo!Finance Tesla Is the New Apple: Najarian | Breakout - Yahoo! Finance My take- It seems Plug_Ins have been reasonably successful here since 2012, selling 30,000 vehicles. But keep in mind conditions have been ideal: high gaso prices, low electric prices, extraodinary Federal incentives that are partially matched in some states (CA, CO, WA, NJ, a few others), and falling Plug_in car prices in part possibly due to weaker demand than expected. It's anybody's guess how long this honeymoon period lasts, but if repubs win next presidential election...that would be one warning sign.
prius_in_pa = Dan Cathy = jnet = Bean Counter, Welcome back, again. That didn’t take very long. You blew your cover even earlier this time.
California is implementing CO2 Cap and Trade (AB32) program. Eventually $12 billion a year will be added to energy costs. How will that translate to an EV owners costs? Will gas rise as much as electricity?
Good question! While no one can predict the future, lets see if we can make a good guess. CO2 cap and trade would add costs to electricity generation from fossil fuels, correct? If so, California residents would not be terribly impacted by the added costs. Most of the additional costs would likely affect peak production in the late afternoon. So for EV owners that charge during off peak, negligible affect, possibly zero. When is the 12 Billion in effect, you said "eventually". Once that happens, that works out to about $300/year per resident. Of course, much of this may be paid for by manufacturers, industry, even oil refineries. But for now, lets look at just splitting it up among residents. So that is $25/month. For drivers that drive 1000 miles a month, they need about 20 gallons of gas (if everyone drives a Prius, about 40 gallons if they drive a vehicle with the average efficiency). If gas prices went up $1.25 by the time this 12 Billion cost comes into full effect EV owners would break even, even if they did have to pay an even share of the additional costs.
Actually I forgot about the EPA closing coal plants. That has got to boost electricity prices relative to gasoline. Making EVs less economical could inadvertently kill the industry.
EVs are fundamentally more "economical" than ICE vehicles if you factor in the externqtilties of your energy choices. Even including the battery building and recycling they beat conentional vehicles hands down simply because an electric motor is so very much more efficient than an ICE! Factor in regen capability , the ability to use (and store) peak solar and wind, and understnd that even grid generated electricity is very much more efficient than smaller thermal sources. (in othe words a large multiple GW generating facilty and grid infrastructure is way more efficient than a bunch of back yard ICE gennies producing the same power. Factor in the carbon cost of ICE transport and EV transport, even from crappy coal fired sources and EVs still usually win. Icarus
I am optimistic about both Tesla, the company, and the stock, TSLA. The stock has always been extremely volatile, and will likely continue to be. I own some TSLA, but I don't regard it as an "investment." I own it because I love my car and I like the idea of owning a bit of the company. But EVs are an emerging technology, and in any emerging technology there will be a lot of companies in the market at first, and fewer and fewer as the technology and the market mature. There's no knowing which companies will survive, and Tesla could fail. However, Elon Musk is one very sharp cookie, and betting against him is likely to be a very bad idea. With any very volatile stock, there are opportunities to make a lot of money by day-trading on the ups and downs, but that also brings equal risk of losing a lot of money. In the long run, I expect the company to be successful and the stock to rise. But no smart investor would put money they cannot afford to lose into a volatile start-up company. One big difference between shorting a stock, and selling shares you own, is that in the later case you get cash for your shares and you are out of it; whereas in the former case you are obligating yourself to buy shares to cover your shorts, regardless of the price. When you sell shares you own, you risk losing out on potential profit, but when you short a stock, you incur the risk of potentially unlimited loss. Shorting is not for the neophyte.
Watching tsla, a 6$ bump between 9:30 and 10:am...shorts loading up Every uptick somebody's buying 6,500 shares
it's happening every week across the whole market. they buy until it reaches a certain point, then the money changers agree to sell off and make a profit off of the backs of the small investor.
TSLA is currently down 12.23% or $26.86 to $192.75 after hours after they announced Tesla offers $2.8 billion for SolarCity in 'no brainer' deal for Musk - Yahoo Finance. Hmmm...
Well....only down to 200 now...for some reason mergers can do that As they say, if you can't handle the volatility, don't own stocks. Pretty much, I cannot handle it. They call me Bond, James Bond...I like bonds
