Always treat others with respect and kindness, even if you disagree with them. Avoid making personal attacks or insulting others, and try to maintain a civil and constructive tone in your discussions.
- Manlobbi
Stocks A to Z / Stocks T / Tesla (TSLA)
No. of Recommendations: 3
am not a paying burry subscriber, but it seems he is not aware that meme sentiment has to break in general to affect tsla.
"...'Tesla’s market capitalization is ridiculously overvalued today and has been for a good long time,' Burry, who rose to fame for his call on a housing market bubble in the 2000s, wrote to subscribers of his new paid Substack.
Burry pointed out that Tesla dilutes shareholders at a rate of 3.6% each year and doesn’t offer buybacks..."
in other breaking news, trump is the first convicted criminal potus, with a strong connection to pedophilia.
No. of Recommendations: 0
I am not a paying burry subscriber, but it seems he is not aware that meme sentiment has to break in general to affect tsla.
"...'Tesla’s market capitalization is ridiculously overvalued today and has been for a good long time,' Burry, who rose to fame for his call on a housing market bubble in the 2000s, wrote to subscribers of his new paid Substack.
I don't think Burry would disagree that Tesla is a meme stock. He is not saying it will drop right away, he is just saying that it is overvalued. It could get more overvalued if Tesla fans (I am one) drive the price up despite the fundamentals, which would not contradict what Burry is saying.
I think the point he misses is that Tesla is a bet on the future, not on current sales and profits. Of course it is hugely overpriced based on the cars it sells right now or the number of cars it can reasonably sell in the next 2-3 years. The question is, is Tesla at the edge of a transformation to affordable self-driving cars, or not? In other words, will they take over not just a slice of the EV market but also huge chunks of the much bigger markets for taxi service, parcel delivery, public transit, etc.? And what about personal robots? And what about robotics in general, and battery storage, and making their own chips and perhaps selling them to others? Some of these are farther away than others, but betting on Tesla now is a venture capital bet on future products, not a bet on the company's existing products.
Burry pointed out that Tesla dilutes shareholders at a rate of 3.6% each year and doesn’t offer buybacks..."
I like the unintentional irony here: the company is way overpriced, and they don't even offer buybacks!
dtb
No. of Recommendations: 0
just curious, been unable to get answers from other sites w/Tesla fans.
question is partially based on some tech traders, partially based on 'fundamental' benchmarks.
what is the shareprice drop where you would sell?
what is the max loss you would tolerate?
is any of it determined by a dated kpi , and\or prior realized gains?
No. of Recommendations: 0
what is the shareprice drop where you would sell?
what is the max loss you would tolerate?
is any of it determined by a dated kpi , and\or prior realized gains?
I don’t follow the logic of selling because the share price has dropped. All other things being equal, i.e. on no new information, I would probably sell half if the price rose to $600-700, and double my position (currently 2% of my investments) if the share price fell back to $300. The key performance indicator is progress in AI driving or personal robots. I would ignore distractions like monthly or quarterly car sales.
No. of Recommendations: 0
interesting, that is not the behavior some shorts have theorized.
their expectation is that a drop to a certain level , where retail realization of recovery is shattered, would be a sentiment inflection selling point.
(and guesses about that level include baseline intrinsic value as a car mfg)
i doubt whether anyone knows if\when that scenario presents, be it tesla or bitcoin.
No. of Recommendations: 0
that is not the behavior some shorts have theorized.
their expectation is that a drop to a certain level , where retail realization of recovery is shattered, would be a sentiment inflection selling point.
(and guesses about that level include baseline intrinsic value as a car mfg)
You may well be right, that may be how many investors would react, even if it’s not how I think.
I don’t doubt that there is a lot of enthusiasm fueling the share price rise, and part of that is enthusiasm with the share price rise itself, which might mean a drop could be steep. I just feel that a lot of that enthusiasm is justified.
If (admittedly a big if) self-driving is on the verge of working, they have a very big addressable market, with major cost advantages over the competition which is relying on radar/lidar.
DTB
