And of course Sorrento, the stock I divorced at $5 has since done the impossible and nearly TRIPLED to $14 on one vaccine "breakthrough" after another. Even Cramer is on board with a Strong Buy rating (even though he trashed it as a "long shot" recently at $8). It was a great investment for the faithful, but I just cant shake the feeling something shady is going on. Who knows, it may go to $20+ one day but I wont own it.
Tesla doesn't have to hit $3k for me to admit that long term you were correct that it was a better long term investment. You are already up 5x on your money while gold has only doubled. That is why the market usually attracts more money long term than metals.
Now its time to watch Tesla go back to $300.
Tesla is going back to $300!
...after a 5 for 1 stock split.
Tesla is going to $420 again. That's the only reason Elon split the stock. So he can relive the $420 moment. That's $2,100 presplit for the math challenged.Tesla is going back to $300!
...after a 5 for 1 stock split.
They needed to do it because too many retards only look at the stock price and not the market cap of a company. So now in their mind, Tesla will no longer be expensive since it's down to $300 instead of $1,500.Tesla just announced a 5 for 1 stock split. Nice!
They needed to do it because too many retards only look at the stock price and not the market cap of a company. So now in their mind, Tesla will no longer be expensive since it's down to $300 instead of $1,500.
But this will make TSLA stock and options far more accessible to regular retail investors. Not too many retail can buy options that cost like $30,000 for a single contract like TSLA.
Personally, I'm looking forward to TSLA hitting $420.69 again.
If you look at P/E for growth company like TSLA, you will never buy in and will miss out on the best years of stock price appreciation and growth. You know how many times I've heard the P/E of some growth company was too expensive? I've heard the same exact stupid arguments for Microsoft in the early 1990s, Starbucks in the late 1990s, Google in the early 2000s, Amazon in the 2010s., etc. All growth companies will have stupid P/E during their growth cycle. It's because these companies sacrifice profit for hyper growth. They rather grow faster than try to maximize short term profit and pay excess short term taxes. Elon has basically said they're not trying to make excess profit right now. His goal is to have as close to $0 profit as possible while putting all the resources into growing faster. Which is absolutely the correct move. That's far more important than profit at this point. You worry about P/E when Tesla is selling close to 20 million cars a year which they will around 2030. When Tesla is selling 20 million cars, they will make so much money that it will blow your mind. Then all the stupid idiots who were screaming about how Tesla has absurd P/E now will buy TSLA stock because it will then have normal 20 P/E while TSLA stock after the split is worth like $1,200 or $1 trillion market cap. They will have missed all the big stock price appreciation and growth.Well... the stock valuation will still look completely crack smoking insane from a P/E ratio either way. Not that I'm really worried about that anymore... I brought in around $355 during the dip and sold half of my stake around $900. Owning TSLA stock might still be a gamble, but I'm totally playing with house money at this point.
That said, Tesla still has a solid 5 year lead over the other automakers when it comes to electric vehicles.
In other news, Chase has the lowest APR for 30 years mortgage vs. other big names . I just check and it is 2.837% if you have good credit score (upper 700), 20% down, and the home is $400K or less. Damn temptation to pull the trigger for a house, then a wife (have to be in that order from what I heard).
Your point is valid, but it is missing one vital piece of information. The cost to sell a unit of an item for Microsoft, Starbucks, and Google is nearly $0. The costs for those companies are all front-loaded. For example, the cost to sell an additional coffee is almost nothing, maybe a couple pennies. But the cost to build the Starbucks store, develop demand, train employees, etc is massive. Some goes with Microsoft, the cost to sell another copy of Windows is almost nothing. Or Google, the cost to sell another ad is nothing compared to the costs to build up the infrastructure to sell the ad to the proper person. At any moment, those companies could flip a switch and go from high up-front costs to nearly no costs and keep selling at large profits. Their P/E can go from massive to reasonable overnight.If you look at P/E for growth company like TSLA, you will never buy in and will miss out on the best years of stock price appreciation and growth. You know how many times I've heard the P/E of some growth company was too expensive? I've heard the same exact stupid arguments for Microsoft in the early 1990s, Starbucks in the late 1990s, Google in the early 2000s, Amazon in the 2010s., etc. All growth companies will have stupid P/E during their growth cycle. It's because these companies sacrifice profit for hyper growth. They rather grow faster than try to maximize short term profit and pay excess short term taxes. Elon has basically said they're not trying to make excess profit right now. His goal is to have as close to $0 profit as possible while putting all the resources into growing faster. Which is absolutely the correct move. That's far more important than profit at this point. You worry about P/E when Tesla is selling close to 20 million cars a year which they will around 2030. When Tesla is selling 20 million cars, they will make so much money that it will blow your mind. Then all the stupid idiots who were screaming about how Tesla has absurd P/E now will buy TSLA stock because it will then have normal 20 P/E while TSLA stock after the split is worth like $1,200 or $1 trillion market cap. They will have missed all the big stock price appreciation and growth.
Tesla definitely can act like those companies. Manufacturing autos have high fixed costs. But once you get it up to scale, all the extra cars are just gravy once you cover the massive fixed cost. Economies of scale matter greatly in manufacturing. Also, Tesla will have software like revenues for part of their business. FSD, apps, OTA performance upgrade purchases will have software margin and will be massive in the future. And we're just talking about autos. Tesla is going to transform autos and energy.Your point is valid, but it is missing one vital piece of information. The cost to sell a unit of an item for Microsoft, Starbucks, and Google is nearly $0. The costs for those companies are all front-loaded. For example, the cost to sell an additional coffee is almost nothing, maybe a couple pennies. But the cost to build the Starbucks store, develop demand, train employees, etc is massive. Some goes with Microsoft, the cost to sell another copy of Windows is almost nothing. Or Google, the cost to sell another ad is nothing compared to the costs to build up the infrastructure to sell the ad to the proper person. At any moment, those companies could flip a switch and go from high up-front costs to nearly no costs and keep selling at large profits. Their P/E can go from massive to reasonable overnight.
Telsa can't just flip a switch. Building cars will always be expensive. Sure, they can stop building battery factories and drop the costs a bit. But, Tesla cannot behave like those companies you mentioned, since it will never be able to get its costs of another car down to near $0. It simply isn't a apples to apples comparison.