Why The Fuck Is Tesla Worth A Trillion Dollars?

[Warren t claim]

https://edition.cnn.com/2021/10/25/inve ... index.html

[Warren t claim]

tsales1.PNG (13.22 KiB) Viewed 2074 times

Fucking hell! They only make half a million cars a year!

[Guest]

Don't forget a trillion is not as much as you think, Americans can't count.

[LynehamHerc]

In my opinion it isn't. There's no insurmountable barriers to entry to that market for a start.

It's getting like the DotCom boom in the late 90s/2000 when valuations went mental. People were reguarly boasting of ten baggers, that their shares had gone up tenfold. A lot of people got burnt when the market got back to reality. I've still got a couple of shareholdings from that time which are worth fuck all but keep them to remind me of my hubris, which to be fair was pretty moderate by the standards of the day.

[Warren t claim]

In my opinion it isn't. There's no insurmountable barriers to entry to that market for a start.

It's getting like the DotCom boom in the late 90s/2000 when valuations went mental. People were reguarly boasting of ten baggers, that their shares had gone up tenfold. A lot of people got burnt when the market got back to reality. I've still got a couple of shareholdings from that time which are worth fuck all but keep them to remind me of my hubris, which to be fair was pretty moderate by the standards of the day.

I'm no Apple fanboy, I checked out of buying their phones after the iPhone 4s, but I'm willing to admit that their products are high quality and well made. Tesla seem to exist to keep Jaguar Land Rover off the bottom of the reliability index.

[M'coli]

Ego.

[SiC]

Software is one of the world's most expensive things to create. Much more than mass produced hardware.

Tesla has the longest lasting Battery Management, most efficient motor controllers + motor and tightest integration into all the cars subsystems. All of which is incredibly important in producing a world class electric car platform. The major manufacturers have for years outsourced all this development and now realising where this has lost them the control. So many manufacturers have bought it back in house with varying degrees of disarray. The VW ID.3 has been a software shit show and caused them to be delayed in releasing that product. Even now it's regarded as very poor implementation. Despite all the traditional automotive strength, they have only just started making automotive products that can get close to Tesla. VAG have invested in Rimac heavily to try and leapfrog their technological shortcomings.

Add in the sprinkles that Tesla has done so well marketing it's product it's lead to a strong hyped up consumer base wanting their products. Ask any Gen Z and younger what car they aspire to, Tesla will be the predominant answer.

Tesla's quality is extremely variable and generally sucks, but that's not where the investors are worried about just yet. That all can be sorted with time. Their core technologies is where the real interest is.

I really dislike Tesla but I appreciate how successful they have been in such a short space of time.

[SiC]

I'm no Apple fanboy, I checked out of buying their phones after the iPhone 4s, but I'm willing to admit that their products are high quality and well made.

I can't agree with that. Hardware may be generally good to excellent but their software is getting progressively more dire and bug ridden. Quality control has been dipping since Jobs has died and it's showing. Just look at how bad Big Sur has been, especially from user experience POV.

[Scruffy Bodger]

The worlds awash with funny money, has been since 2008 at the latest when it should have gone pop. A dodgy company with a dodgy CEO selling a dream.

[LynehamHerc]

Precisely.

That's the short answer.
The long one is below.

The financial press are hyping it up as an investment as normal returns are shit due to all the cash floating around as Scruffy says, the Morrisons takeover is a recent example locally.

They're saying it's different this time, they always do and it never is. The investment world goes in cycles and, in my opinion, this is an indicator that the current cycle is getting close to the peak.

See also for a few examples:

The dot-com bubble, also known as the dot-com boom, the tech bubble, and the Internet bubble, was a stock market bubble caused by excessive speculation of Internet-related companies in the late 1990s, a period of massive growth in the use and adoption of the Internet.

Some of the firms that went bust were the Tesla's of their day. Leading edge technology didn't save them.

https://www.google.com/search?q=dotcom+ ... e&ie=UTF-8

Tulip mania (Dutch: tulpenmanie) was a period during the Dutch Golden Age when contract prices for some bulbs of the recently introduced and fashionable tulip reached extraordinarily high levels, and then dramatically collapsed in February 1637.
https://en.wikipedia.org/wiki/Tulip_mania

The Japanese asset price bubble (バブル景気, baburu keiki, "bubble economy") was an economic bubble in Japan from 1986 to 1991 in which real estate and stock market prices were greatly inflated.[1] In early 1992, this price bubble burst and Japan's economy stagnated. The land the Japanese palace in Tokyo was on was valued the same as the whole of Canada if I remember correctly.

https://en.wikipedia.org/wiki/Japanese_ ... ice_bubble