Hey Jessielons
If there's one man that's keeping journalists in a job, it's Elon Musk; while he does give the media whores a fair bit to suckle on, they do try to jazz things up or milk every tweet into a fully fleshed out story so the can get a few clicks and sell a few ads served by Google. If you cannot understand how destructive this business model is to the product, then you won't understand that media isn't the product.
You might think you go to the website for the article, nope, that's just how they can serve you more ads; it just happens to be an article. If they could serve you pictures of Elon Musks booty hole and it keeps you on the page long enough, they'll do that too.
Now Elon is in the media a whole lot if running Tesla and Space X isn't enough, it's his less popular companies, or his trolling on Twitter, appearances on Joe Rogan, or what his farts must taste like, I don't know I don't really keep up with this stuff too much.
What is a meme stock?
A meme stock is a piece of hot garbage wrapped with a ticker, the company is either about to shit the bed or has shit the bed, but people think it would be funny to bid up the price of the stock and meme the markets.
Since markets are so manipulated today, retail has no found a new hobby in finding pockets where they can manipulate stocks with a little float or through derivatives markets forcing float off the market.
Meme stocks are basically stocks that are stupidly overvalued and lack fundamentals to back them up. Elon has been pretty vocal on meme stocks, using his powers of pump-ementals to moon $GME and a few other stonks.
I find this ironic because I think Tesla is the biggest meme stonk of all.
Enter Tesla
Telsa is the darling of the S&P 500, tiktokkers and anyone with no financial experience is buying this thing based on the fact that it's run by Elon. Those in the know are buying it because, well, they can take money from dumb retail and then some buy it. After all, it's their mandate to own something in the $&P 500.
Then there are people like Ark, who are Perma bulls, and if Tesla puts cup holders in their car, it's a bullish sign it's going to take over the market.
Anyway, let's say many people are riding hard on Tesla but can never afford to drive a Tesla. Tesla currently has a market cap of $577,38B and a PE ratio of 600. To put this into context, a fair value company normally trades at around 13 to 15 times earnings.
Not a car company its a tech company
Telsa is by no means a basic ass car company; it's banking on a lot of tech, such as its battery tech and its autopilot tech. It doesn't see itself as a car company but a tech company that will be the backbone of EV's and it just so happens they also sell cars.
I get the narrative, but I think a lot of what's priced into Tesla is a bit of a moon shot.
Tesla's goal is to have the best autonomous driving and best battery tech, so anyone who wants to do EVs or driverless cars will have to use their tech and servers. They can milk everyone to death in the process, having a monopoly on the service.
Now, if they get this right and all car manufactures are beholden to them, well, then I get the price action, but I don't get why their pricing further increases; there's only so many EV's the entire world can push out per year to use their service even if they are 100% the backbone.
Tesla is unprofitable
A lot of reasonable people have said this and get the whole well amazon was unprofitable for years example. Tesla also relies heavily on the government and the carbon credits system to stay in business and is far off having enough cars in production or software licencing to increase their earnings to match their valuation.
As much as Elon meme's other tokens and stocks, I think he also used his status to meme his own companies into a whole new set of investors who are price insensitive.
There are plenty of smart people working at Tesla, there's plenty of cash to keep Tesla going, there's indeed a chance Tesla can succeed, but to me, Tesla looks like a meme stock.
We've long passed any financial reality, so it can keep going for years, and I can sound like a scrooge McDuck while others make out like bandits buying Tesla stock.
I'll probably miss out on all those gains due to my conservative nature of investing, but that's okay with me. I can only invest in things I understand and make sense to me, naturally, that means I am often late to the party but hey you can't win them all.
Have your say
What do you good people of HIVE think?
So have at it my Jessies! If you don't have something to comment, "I am a Jessie."
Let's connect
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So I understand there are a bunch of cult like members and its also the reason why I don't specifically believe the buy to the moon nonsense. While I believe the premise, I don't agree with everything and I wouldn't really consider it just a meme stock.
Is Tesla completely profitable without the subsidies? Currently no because they sink too much into development. It is something common in most companies when they are growing. Tesla is definitely ahead of the rest of the when it comes to the EV space and autonomous driving. Not everything he promote is the best and all I believe is that it is an edge. So if they were to stop focusing on development, then they would definitely be profitable.
So long story short. Would I buy tesla at current prices? No I would not and even the technical chart doesn't make me interested. However I don't believe using P/E ratios would make you more or less similar to those mainstream economist.
Do I think Tesla has a higher chance in 5 years? Yes I think it would if things play out according to their edge. However I just don't think the risk is worth the reward for a core position. If its just a trade, then yes I don't mind entering.
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Definately agree with you there! Not my cup of tea either I am happy to be proven wrong lol I didn’t die because I missed out on Apple google or Amazon either, you can’t pick every winner
There had been too many promises that Tesla failed to realized. Meanwhile as you said, the profit reports are terrible and this company is heavily funded by the state to survive. Sadly this is not capitalism anymore. In capitalism mistakes and bad management is not paid by the taxpayers. This is some kind of corporate socialism. Favor the businessmen do whatever they like as long as there is production running.
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Agreed, it's banking on a story and there is little to no fundamentals to warrant the value of the company other than lobbying to get competitors to buy credits from them. As if they don't use carbon to create their cars, it's so non sensicale
If they could serve you pictures of Elon Musks booty hole and it keeps you on the page long enough, they'll do that too.
Oh I definetely don't want to visualize that lol. Elon is doing the best than he can in order to have the upper hand, it is just market play. The meme mania will cool off I guess, once people start to realize stuff. The " No fundamentals" can't last for long
Lol I’ve been waiting for this day when fundamentals happen to come back into the picture but I don’t know if it will be anytime soon! Too many people live their lives hopelessly tethered to fiat value numbers they so they’ll post rationalise anything
We still have many more years before faith in currency is lost!
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I don't follow the US stock market very closely so I can't really say but it's the second time I hear someone hinting this.
Personally, I believe they are building - or at least trying to build - some good foundations that will put them in a good position in a few years.
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Lol peoole also believed in nikola, we work, Enron, ubiome, the ranks, world com, pets.com the list is endless
People have such a recently bias do you know 90% of public companies only have a lifespan of 30 years? Tesla is by no means immune to that
I have always associated elon with social influence and not really value so to say. So I feel the price of Tesla is a product of his influence on social media.
This is the most important point in this post. If a lot of people know this, getting burnt will be minimal
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Pitty no one gives a shit they all just chasing numbers so the rules don’t matter! If you get enough people flowing in it changes the rules even if it’s complete madness
Tesla wouldn't get off the ground if it weren't for billions in Tax subsidies and government hand outs it gets on the politicly popular Green Initiatives disguised pork barrel.
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Lol as if Tesla is the greenest thing ever and all that money is not going to waste compared to if it wasn’t riped from others and handed to some
Sigh! But so many seem to be Elon Acolytes and he can do no wrong
The growth of Tesla’s share Is fascinating and worrying at the same time. You said it rightly, how many of the investors see Tesla as a technology company and how many of them see it as a car company. This is a big misconception about Tesla. And Him being in the need always helps the share price.
It’s crazy.
No ones investing in Tesla for the tech I have no doubt it's smart people working there but let's be honest peoole only invest in it for Elon and his so called track record, because it has government backing and because it's price keeps going up, there's very little else going on here
The narratives justifying why to invest in Tesla don't hold up for me
Hahaha Tesla is indeed a meme stock, like Doge. I have never invested in stocks and only came to finance through crypto in 2017, kind of backwards compared to most people. Not to worry about missing out on stocks - there is apparently a massive stock market crash coming with the global financial meltdown soon, so I would rather be in crypto or physical metals.
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I have a few local stocks, dividend yielding ones but I've had them for ages nothing special not going to make you rich lol other than that I am not really into stocks. I don't see the market crashing with QE around, it will just be repriced with more printing so sure your stock is X dollars, but those dollars don't buy you the same thing. The stock market has been crashing for years if you price it in something like gold or Bitcoin, its only going up when you price it in fiat
Aha good perspective there Che on stock prices.
And permanent QE will change the face of finance forever.
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Tesla is overrated in more ways than one. I see its biggest weakness as battery technology.
Like all devices which use batteries, it takes time to charge them. Who has the time to fully charge a Tesla? Best case scenario is 30 minutes for a "quick charge." Who has that kind of time? Add to that lines forming to use the charging units on the road, and it's not a pretty sight. Charging a Tesla is most inconvenient.
People can say what they want about the evils and ills of gasoline (or even diesel fuel), but everyone can say that filling up a tank takes just a few minutes. Some trips to the loo take longer!
In China, the manufacturer of the Nio electric car went with a different refueling paradigm: just swap out the battery or batteries used by the car. The batteries get charged fully away from the car, wait times drop closer to what fossil fuels offer, and the recharged batteries get redistributed.
Tesla can't do that?
Should Tesla switch to that refueling paradigm, then it becomes a world leader in electric and hybrid cars. That would make it a serious company with a serious stock to offer. Until that happens, we can treat Tesla like a meme.
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Yeah battery technology or rather the promice of it I feel is way overblown, even if someone were to develop superior battery tech I think those resources would be used more for things we use constantly and each day like computers and smartphones over that of a car
The batteries have so many physical limitations in its current format and people just assume anything can be improved exponentially technology is not information, its not tacking on a few extra servers, there's actually laws of physics that limit what a battery can do
On top of that, the batteries are made using toxic chemicals and/or metals which aren't easily recyclable.
Another problem is that electric cars are made to emulate certain kinds of vehicles which detract from their good qualities as electric cars:
Electric cars are best for short-range travel, and that means lighter batteries, which result in overall lighter weight for the vehicle. This makes the electric car a cost-effective option for people in cities and metro regions. It can even lead to electric cars being used like electric bicycles: use them as needed, swap them out when necessary.
The lighter-weight electric car would also be much cheaper than what is offered today in the West. For long-haul travel or cross-country road trips, hybrid cars would be better. If hybrid vehicles are anathema, compressed natural gas or liqified natural gas can be used as a cleaner fuel than gasoline or disel fuel.
As long as Tesla sticks with its unique selling proposition-- powerful and sexy electric cars-- it will be a meme stock company.
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Just my humble opinion ⬇️
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