Tesla has done well because its a meme stock like bitcoin etc.
2019: $60
2021: $1100
Printable View
not correct at all. Tesla has increased in value because it is growing Revenue and profits like crazy, and is achieving gross margins absolutely unheard of for a mass market manufacturer. Along side that every single stupid Bear argument has been either proven as totally false or failed to happen as predicted. Even the most conservative analysts admit they got Tesla completely wrong and now acknowledge it is a cashflow gusher.
The most reputable conservative analyst I know is Aswath Damodaran, the dean of valuation at NYU, who is widely known for his very dry discounted cashflow valuation of companies, and in his latest post he details exactly why he was so terribly terribly wrong on Tesla stock value. He now recognizes it definitely should be worth over half a trillion dollars today, rather than the low tens of billions worth he previously assigned.
Note that he is still being conservative with his projections, which is his right, but even with these conservative estimates of Tesla future profits, he still values the company as legitimately one of the largest in America with unparalleled financial performance for a manufactured goods company in terms of capital and operating efficiencies and margins.
He currently thinks the share price is above fair value, but he is not stupid enough to suggest its unworthy of a high above half trillion valuation or being just a “meme stock”.
Thank you - has been a wonderful ride so far :)
A couple of interesting factoids for Tesla disciples to eat their hearts out on...
Since its 2010 IPO it has declined:
- 10% 12 times
- 25% 8 times
- 30% 5 times
- 40% 2 times
- 50% 1 time
- 100% 0 times (not yet?)
TOTAL return since IPO: +29,035%.
mmm - methinks I will wait a few days to see which way the current sentiment pans out…
Stop loss took me out of Tesla on Friday but will definitely get back in.
Wondering why such a large staff number in a pretty automated environment…