What are everyone's thoughts on $TSLA's performance the past week or two? I haven't seen much anyone talking about it in the community here. Is there justification for the large increase in price or is it all just hype?
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Nathan Worden's avatar
I've never sold Tesla until two days ago when it hit $1,205. The parabolic run-up made me take some off the table. Sold about a quarter of my position. Looking to buy back in about 10% lower.
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Mark Flood's avatar
same. Had some covered calls get assigned lol
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Todd Campbell's avatar
EVs currently account for just 3% of total unit sales annually. It delivered 240k cars last quarter and it's long term target is 20mn units. Its op margins are 15%. Lots of room to continue growing financials. Also, we shouldn't forget that its also an energy company via solar/batteries, and potentially, a national 'gas station' company via chargers. The software-as-a-service potential for the co' is important, too, bc that's very disruptive to the legacy auto biz model. Clearly, I'm long (and could be wrong), but seems lots of shots on goal next decade. Obviously, stocks don't go up in a straight line, though, and this move is one for the books.
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Nathan Worden's avatar
Great perspective— thanks for sharing Todd @ebcapital
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Todd Campbell's avatar
My pleasure!
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Pete Nikolai's avatar
Short term $TSLA is always just hype but long term it makes complete sense. Similar to $AMZN over the years, the fundamentals make it seem overpriced but it will probably grow into those numbers so waiting just means the price will be higher (unless purchases are made during corrections or bear markets).
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Pendulum Investments's avatar
I do think there is some truth to this, but I am also suspicious that Tesla can reach the potential the market is pricing it for.


Is the automobile market as a whole big enough for Tesla to grow to match its large valuation? Alternatively, does Tesla have its fingers in other markets outside of the auto industry?
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Pat's avatar
@patwallenNovember 3
@pen_inv you’re missing a huge point… Tesla cannot sustain its valuation bc as other OEMs come into the market w comparable products- which is inevitable- the market cap will adjust downward to level set w those OEMs. People forget Tesla loses money.
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Mark Flood's avatar
Tesla loses money? Their gross margin is like 30% which is signficantly higher than any other legacy auto. Also..they have generated free cash flow in like 6 straight quarters.
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Pat's avatar
@patwallenNovember 3
@cashflo it has no marginal profit
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Mark Flood's avatar
Excuse me? On a $100,000 vehicle their margin is like $30,000.
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