Tesla Now Worth More Than GM, Making It the Most Valuable US Automaker

Megalith

Megalith

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Following Ford’s defeat yesterday, Tesla has now leaped ahead of General Motors, which means the premium electric car and SUV company is now top dog in the car world. Part of this success is owed to the Model 3, which is generating a ton of hype and potential for Tesla. Assuming that manufacturing goals are met, it should be interesting to see how the stock prices look following that quarter.

Tesla is trading up again today, after a strong run yesterday that saw its total market cap value leapfrog Ford’s. It passed GM’s market cap on Tuesday, meaning it’s now the most valuable U.S. automaker as measured by the stock market’s standards. It looked quite likely that this was going to happen yesterday, and Tesla’s stock has been on a tear following its report that both car production and car deliveries were up during the first quarter of the year. The big established U.S. automakers, by contrast, had bad news to report for first quarter vehicle sales in the U.S., which makes Tesla look like a strong growth stock and competitors look like stable performers, at best.
 
Silly silly stupid millenials buying things based on hype and not on facts and statistics. Reality will step in at some point, when that will be I'm not sure.

OOOOOOO I love snapchat, I dunno how they will make money, but let's buy it! I LOVE
 
gamerk2 said:
Actually, if the model 3 manages to meet expectations, I could easily see the stock doubling.

You don't get it: Stock prices aren't based on how valuable a company actually is, it's based on how valuable its PERCEIVED to be.
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and Musk has way too many bad ideas to keep up that perception for too long.
 
Cyraxx said:
Silly silly stupid millenials buying things based on hype and not on facts and statistics. Reality will step in at some point, when that will be I'm not sure.

OOOOOOO I love snapchat, I dunno how they will make money, but let's buy it! I LOVE
Click to expand...

I just love totally reasonable and well thought out comments like this. Please tell us more about the good ole days before millenials
 
kledar586 said:
I just love totally reasonable and well thought out comments like this. Please tell us more about the good ole days before millenials
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I can't tell you since I am a millennial sadly ;)

I just know my generation is the literal definition of retarded. That or rather, we are redefining it because we're bringing to much lower levels.
 
rgMekanic said:
and Musk has way too many bad ideas to keep up that perception for too long.
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What that's the benfit, he gives off a feeling he'd be willing to ride that ship down so Tesla has a pretty good backer in case of troubles.
 
Cyraxx said:
I can't tell you since I am a millennial sadly ;)

I just know my generation is the literal definition of retarded. That or rather, we are redefining it because we're bringing to much lower levels.
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I bet you are a blast at parties...

Since you are a millennial you probably don't remember this silly upstart called Amazon that had crazy ideas and ran in the red for around 2 decades. Looks to be benefiting those who were speculating.
 
Maybe other car companies will start getting serious about their electric vehicles now.
 
rgMekanic said:
and Musk has way too many bad ideas to keep up that perception for too long.
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Really? Can you say the same about Bezos then with Amazon who came up with catastrophic ideas like Amazon Phone who is now the 2nd richest person in the world. Failed ideas happen all the time, the ones that fail are the ones who refuse to admit it failed to move on. You want the deifnition of failing from bad ideas/adjustments? Look at GoPro.

Musk, Tesla, SolarCity, Space-X will be just fine.
 
That_Sound_Guy said:
Really? Can you say the same about Bezos then with Amazon who came up with catastrophic ideas like Amazon Phone who is now the 2nd richest person in the world. Failed ideas happen all the time, the ones that fail are the ones who refuse to admit it failed to move on. You want the deifnition of failing from bad ideas/adjustments? Look at GoPro.

Musk, Tesla, SolarCity, Space-X will be just fine.
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I don't know of any successful person that hasn't failed. For successful people though the successes are greater than the failures.
 
"Real man" dislike electric cars because reasons. One guy drives at least 1000km each day. Another one has a family of 10. Etc., etc.
 
heatlesssun said:
I don't know of any successful person that hasn't failed. For successful people though the successes are greater than the failures.
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Failure and accountability are two traits of many of the most successful entrepreneurs living and dead.
 
Tesla set a company record for vehicles delivered last quarter. Ford does 9 times that number on an average month. Tesla sold 40,700 cards last year, Ford sells that many F300s in an average 3 weeks.

I understand this valuation is based on percieved value, I can't help but anticipate that Tesla will start running into real quality control issues and lifespan questions as they continue to ramp up volume. That is if they are even able to contiune to ramp up production to keep up with demand.

We tend to take these things for granted with Ford/GM/Toyota/Whoever, but the base expectation level is sky high and its near impossible for an upstart to maintain the level of excellence necessary to compete at scale. When will the cracks show? May find out when a few hundred thousand 3-series hit the road.
 
This makes no logical sense. Tesla has never made a penny. They lose huge sums of money every quarter. Their valuation should be in the toilet.
 
bildad said:
This makes no logical sense. Tesla has never made a penny. They lose huge sums of money every quarter. Their valuation should be in the toilet.
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This has never been a problem for Amazon for the longest time, don't see why it would be an issue for Tesla
 
rgMekanic said:
http://www.cnbc.com/2016/10/13/tesla-needs-12-billion-through-2018-key-analyst-says.html

http://www.tilsonfunds.com/TSLA-Spiegel-RH16.pdf

And thats provided SpaceX doesn't cause bankruptcy, Solar City isn't a complete failure, and the Hyperloop doesn't implode and kill a shitload of people.
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SpaceX is profitable already, and with the successful re-launch of Falcon, that will only get better. Should it be necessary, I'm sure SpaceX would be able to come to Tesla's rescue. https://www.bloomberg.com/news/arti...e-as-musk-pulls-in-nasa-contracts-google-cash

Solar City is a huge deal, and contributes toward's Tesla's valuation. Comparing Tesla to Ford and GM et al is completely missing the point. 7 years ago Tesla was an auto company. That's not the case, not any more than saying Amazon is a bookstore. Tesla is a tech company specializing in solar and battery technologies, and automobiles are a part of that vision but just a piece of the picture. IMHO Tesla's biggest asset is the Gigafactory, which surprisingly hasn't gotten a lot of news recently. A couple years back Musk announced that he was opening up Tesla's patents for other manufacturers to use royalty free. His bid is to be a supplier of cars, but also to supply the batteries that *everyone* uses, the solar tech that *everyone* uses to charge those batteries, and to supply power smoothing technology for all of the various renewable options out there, be they solar, wind, or even demand backup for traditional fossil fueled power plants. If this comes together the way Musk is betting on, Tesla is going to be well positioned to being responsible for a large portion of the world's power needs in the future, and Telsa is going to be a very very wealthy company.

And that's why Telsa is way undervalued at $300.00
 
bildad said:
This makes no logical sense. Tesla has never made a penny. They lose huge sums of money every quarter. Their valuation should be in the toilet.
Click to expand...

Investors know it's the future and Telsa is the first to make electric vehicles viable long term.
They still have a ways to go, making a fleet of affordable cars, a half ton truck, better QC and materials.

They are a market disruptor, and they are being rewarded for it.
 
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Cyraxx said:
Silly silly stupid millenials buying things based on hype and not on facts and statistics. Reality will step in at some point, when that will be I'm not sure.

OOOOOOO I love snapchat, I dunno how they will make money, but let's buy it! I LOVE
Click to expand...

Weird, I mostly see millenials being accused of being unemployed losers with liberal arts degrees living in their parents basement, but they're also apparently the primary motive force behind the stock market.
 
TrailRunner said:
SpaceX is profitable already, and with the successful re-launch of Falcon, that will only get better. Should it be necessary, I'm sure SpaceX would be able to come to Tesla's rescue. https://www.bloomberg.com/news/arti...e-as-musk-pulls-in-nasa-contracts-google-cash

Solar City is a huge deal, and contributes toward's Tesla's valuation. Comparing Tesla to Ford and GM et al is completely missing the point. 7 years ago Tesla was an auto company. That's not the case, not any more than saying Amazon is a bookstore. Tesla is a tech company specializing in solar and battery technologies, and automobiles are a part of that vision but just a piece of the picture. IMHO Tesla's biggest asset is the Gigafactory, which surprisingly hasn't gotten a lot of news recently. A couple years back Musk announced that he was opening up Tesla's patents for other manufacturers to use royalty free. His bid is to be a supplier of cars, but also to supply the batteries that *everyone* uses, the solar tech that *everyone* uses to charge those batteries, and to supply power smoothing technology for all of the various renewable options out there, be they solar, wind, or even demand backup for traditional fossil fueled power plants. If this comes together the way Musk is betting on, Tesla is going to be well positioned to being responsible for a large portion of the world's power needs in the future, and Telsa is going to be a very very wealthy company.

And that's why Telsa is way undervalued at $300.00
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Thank you for the great summary.

I recently got solar panels. Curious to see if i should have waited for the shingles ;)
 
Lizard Testes said:
Weird, I mostly see millenials being accused of being unemployed losers with liberal arts degrees living in their parents basement, but they're also apparently the primary motive force behind the stock market.
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It's like Schrodinger's Immigrant. Simultaneously stealing your job while living off the gov't doing nothing.
 
Snowdog said:
Then you should have no trouble borrowing a pile of money to short the stock and get rich?
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Yup, if they're so sure of their valuations they should do just this. Lots of people agree, Tesla is one of the most shorted stocks. Yet, no one who has a current shorted position in TSLA is in the money right now because TSLA hit another all-time high today. If they're so sure, that makes this the perfect time to short it. Go ahead people, make that money riding TSLA from 304 down to what... 280? 260? There's a great chance that will happen. But IMO there's nigh-zero chance TSLA is going to 0 or even double digits ever again.

Truth is, the "critics" in this thread so far don't actually know how to evaluate Tesla, they're just spouting stuff they heard someone else say once. The current value of the stock is the perceived future (not current) value tempered by the perceived future risk. Far more people (institutions, really) believe in Tesla than disbelieve, or else the stock price would be lower. And because Tesla is meeting production goals and the Model 3 is still on track, TSLA is doing great. For all the people who claim Tesla can't do something, them actually being on pace to do it has to shut the critics up. And if these critics are short TSLA, the critics stand to lose a lot of money right now.

And yeah, I currently hold long TSLA stock.
 
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bildad said:
This makes no logical sense. Tesla has never made a penny. They lose huge sums of money every quarter. Their valuation should be in the toilet.
Click to expand...

Welcome to the current generation of speculation investing. No one reads the financials anymore. Current investment strategies are basically put money down on 5, 7, 11, 19, 29, double down on red and let it ride.
 
The current price spike is likely mostly due to short squeeze - basically people who bet the price would tank finding out the hard way it didn't, causing it to go even higher. I expect in the future it will be worth way more than $300, but also I would not be surprised to see it under $200 in the next year or two at some point - TSLA is extremely volatile and the price has little to do with their actual value, even considering the potential of the energy division & etc. I think the real value in the future will be well north of $300, due to things like energy storage and so on, but I would never tell anyone to invest in TSLA based on that unless they're in it for the long haul. Short term, it's risky due to volatility. You might be able to ride the waves and buy low sell high, but you can't be sure of how fast or slow the cycles will be.
 
gamerk2 said:
Actually, if the model 3 manages to meet expectations, I could easily see the stock doubling.

You don't get it: Stock prices aren't based on how valuable a company actually is, it's based on how valuable its PERCEIVED to be.
Click to expand...

No.

Your statement is only true in a 9 year bull market.
 
rgMekanic said:
Man that stock is gonna tank haha. Hope people who were holding it get out while it's so inflated.
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doubt it, they just had a massive 1.8 billion invesment by a chinese company, they can ride a few stumbles until they get it right
 
kledar586 said:
I just love totally reasonable and well thought out comments like this. Please tell us more about the good ole days before millenials
Click to expand...

HAHAHA... millennials ... you have to google the shit i lived through...hahahahah. :ROFLMAO:
 
This is such an unsustainable model and will crash down to Earth with a giant thud.
1. Massive reliance on rare earth metals that are sourced from China that will eventually put the hurt on Tesla when they really start to try and scale.
2. The power grid isn't designed for the load of charging millions of cars. The UK has already noticed this and is considering legislation related.


However their solar roof company looks like it would work but also relies on having battery powerblocks using rare earth metals again which isn't sustainable at scale.

Hydrogen Fuel Cell is the way to go with automotive powerplants but require a source of energy to create the Hydrogen. This unsustainable high weight battery idea gets off the ground quickly but can not scale properly over time.

Something has to give. I am not anti-new technology but this just isn't a long-term viable solution. Thus overpricing this company will just lead to millions of tears when it comes crashing down.
 
EODetroit said:
Yup, if they're so sure of their valuations they should do just this. Lots of people agree, Tesla is one of the most shorted stocks. Yet, no one who has a current shorted position in TSLA is in the money right now because TSLA hit another all-time high today. If they're so sure, that makes this the perfect time to short it. Go ahead people, make that money riding TSLA from 304 down to what... 280? 260? There's a great chance that will happen. But IMO there's nigh-zero chance TSLA is going to 0 or even double digits ever again.

Truth is, the "critics" in this thread so far don't actually know how to evaluate Tesla, they're just spouting stuff they heard someone else say once. The current value of the stock is the perceived future (not current) value tempered by the perceived future risk. Far more people (institutions, really) believe in Tesla than disbelieve, or else the stock price would be lower. And because Tesla is meeting production goals and the Model 3 is still on track, TSLA is doing great. For all the people who claim Tesla can't do something, them actually being on pace to do it has to shut the critics up. And if these critics are short TSLA, the critics stand to lose a lot of money right now.

And yeah, I currently hold long TSLA stock.
Click to expand...
The shorts are and will continue get crushed until they capitulate at much higher levels.
 
Vader1975 said:
This is such an unsustainable model and will crash down to Earth with a giant thud.
1. Massive reliance on rare earth metals that are sourced from China that will eventually put the hurt on Tesla when they really start to try and scale.
2. The power grid isn't designed for the load of charging millions of cars. The UK has already noticed this and is considering legislation related.


However their solar roof company looks like it would work but also relies on having battery powerblocks using rare earth metals again which isn't sustainable at scale.

Hydrogen Fuel Cell is the way to go with automotive powerplants but require a source of energy to create the Hydrogen. This unsustainable high weight battery idea gets off the ground quickly but can not scale properly over time.

Something has to give. I am not anti-new technology but this just isn't a long-term viable solution. Thus overpricing this company will just lead to millions of tears when it comes crashing down.
Click to expand...

Logic and facts are useless in anything related to Tesla.
 
gamerk2 said:
Actually, if the model 3 manages to meet expectations, I could easily see the stock doubling.

You don't get it: Stock prices aren't based on how valuable a company actually is, it's based on how valuable its PERCEIVED to be.
Click to expand...

It is not even based on that. It's based on how much they think it will attract money. Desirable is probably a better description than valuable for it. Will the glut of dollars in the market flock towards it? That's it. The ultimate price it reaches is irrelevant.

In this case, there is the perception that they will be first to market with an autonomous car, they will dominate the electric vehicle space, and that the electric vehicle space will grow wildly, mainly by capturing market share from other brands.

So they will get into it and start talking up tesla as valuable and leave someone else holding the bag. Because tesla demonstrably does not know how to make money selling a car. They also have a particularly cavalier attitude regarding product liability that the likes of ford and GM have had real world lessons regarding.
 
Vader1975 said:
2. The power grid isn't designed for the load of charging millions of cars. The UK has already noticed this and is considering legislation related.
Click to expand...

If humans weren't dumbasses, Tesla could use nuclear power that doesn't need a charge for a million miles.
 
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