If I had a dollar for every Elon/Tesla hater that said "This is their last profitable quarter..." I would be very rich. Yet they keep adding billions to their cash pile, another $4B this quarter to take the total to $40B+, double where is was a few years ago, they are literally a cash printing machine. And this is all before autonomy and robotics.
The problem at the moment is not that Tesla doesn't make money. That was a problem when Tesla was a very young company, and Elon Musk absolutely did solve that problem, and absolutely does deserve credit for solving that problem.
No, the problem is that by all sane metrics, Tesla is currently overvalued by a factor of 20. The markets could shift the decimal point left one place, and it would still be wildly overpriced. That cash pile you're talking about is significantly smaller than the amount of money that Musk has made from owning Tesla shares.
Now, can Tesla sell 20 million cars? Yes, eventually, sure why not, is there a time limit?
Can they get 1 million Robo taxis on the road? They're currently about six years behind Waymo, so probably not.
10 million FSD subscriptions? Only if given away with something else. Like, if it comes free with Grok Pro that might be cheap enough.
Can they sell 1 million humanoid robots? This isn't inconceivable, but the market has yet to be validated. We have yet to see how good the software really is in the real world, or what the real world really needs. I wouldn't bet on it either direction.
But the share price target? That only makes sense if the USA experiences genuine hyperinflation. Which isn't impossible, and sadly is starting to be no longer inconceivable either.
So you are correct about Tesla's valuation but the market and all it's millions of participants as well as analysts, who have price targets well above the price now, are wrong. Erm ok. The stock price is whatever someone is willing to pay for it so it can't be 'overvalued'.
I guessing you would think a Picasso painting selling at $10 million is way over valued as the paint and canvas it was painted on are only worth $50.
Musk can only commit financial fraud for so long before it all comes crashing down. 40B in the bank most definitely does not justify a 1.4T valuation. We’ve witnessed a public securities crime the likes of which the world has never seen before. It makes Enron look like IBM.
Unfortunately the SEC is no longer functionnal in the US. You guys have the President that launched a shitcoin 24h before inauguration, and you're asking about the SEC ?
This thing will fall once the supply of fools run out or there is a major market corretion, not when the SEC intervenes. Just like Madoff.
Who could possibly believe the CEO saying that their robot 'will seem so human that you will need to poke it to believe it's an actual robot' - and it's coming in less than 6 months ?
