Market Cap and stock has taken off this year. Great earnings news today
Tesla Inc. stock rallied 12% late Wednesday after the Silicon Valley car maker reported quarterly earnings that topped Wall Street views and set a goal to “comfortably” sell more than 500,000 vehicles this year.
Everybody is dismissing Tesla including me........but OMG what if it's for real ? Oh that"s a very scary thought.
I do commend Tesla for how far they have gone in less than ten years. Many have tried (Tucker, Deloreon, etc.) and it's always been a tough nut to crack. My praise stops there however. The reality is their revenue continues to increase and their net income drops (if the net income is real).
People will criticize, but electric cars cost more to produce than conventional ice power plants. What Tesla's financials demonstrate is that costs are spiralling out of control and no matter what volumes they hit, the commodity prices are not going down for the expensive bits (mainly the battery and motors). They never sold a base model 3 (only model 3 plus) and all their federal tax credits are spent. Go to their website, even to make the sale price more appealing they include it subtracting estimated fuel savings with no explanation of that number.
Also look at how many CFOs they have turned over in the last few years. People (especially those close to money) don't leave a real deal. Not to mention the white collar labor camps, 12hours a day, 7days a week. They burn people out and throw em out like trash. Yeah you get the stock options, but I pity the twenty something that pisses their life away for some rich demagogue. They lose the best years of their life.
Chickens will come home to roost eventually. Stock is just stock. Only so many rich fools to drop $650/share. Amazing how people forget all the owner's antics in such a short time. He is smart, but that comes with a dose of crazy and probably aspergers.
Ford already proved they cannot build small & medium sized gas vehicles. Tesla has the jump on electrified products. We were early in China, and got overrun by our competitors. We do not have the leadership to launch or sustain any future strategies. Company is just a total mess on all fronts.
Investors believe in Elon Musk, not so much Bill Ford and Hackett.