Just sold my Ferrari to buy more TSLA

What strategy???????

 

I don’t believe you understand my post. Carry on.

 

Ok. And what does that have to do with me formulating a strategy and putting my money where my mouth is? If I think something is overvalued, I don’t buy.


Let’s start with some premises. What multiple of sales should a growth company be value at roughly? What multiple annual profits?

 

https://elonmusk.today/

P/E ratio of 1280. In a sensible way? I don't see it.


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You did very well on your shares. Doesn't mean that Tesla isn't detached from reality.

 

I worked several years at Tesla and I was an early adopter. While I didn't own a Roadster I bought a Model S in 2012 and loved it. Still had a sport car for track and weekend.
A Tesla is certainly a good car and I agree that EVS are the best option to move people and stuff around for long term development.
However they don't age well. I'm at my 3 rd Tesla (currently a Model X P90D) and I have taken it to the service center more than my two other modern cars combined. The interior is cheap and flimsy - after 50K miles everything rattles and bends. The wheel bearings are loud, etc.
So yes these are good cars and probably the best overall electric but I would never compare them with a top end luxury car. They're in the Lexus/BMW category with Porsche performance.
That's just my humble opinion.

Also I do own lots of TSLA - it's clearly overvalued seeing the PE and other metrics but that's how the market is and unless the bubble collapses it will still go up.

I'm keeping the Model X to move us around responsibly, but I'm buying a Scuderia!

 

I think a good example of what some are trying to convey to Jerry about valuations is look at Cisco in 2000. Strong young company with great potential and profits. Now look at Cisco today. Still around and very strong company. The stock chart for them going back to 1990 is interesting to say the least...

 

It truly boggles my mind how emotion is clouding so many people.

You should check out the gnashing of teeth on this thread.

Here's the thing, say electric fails - no skin off my back. I have both types of cars. We'll sell our depreciated vehicles and move on. It's as inconsequential to me as if my computer became obsolete.

The detractors, though, are acting as if electric wins, the world will end or something.

Very odd, to say the least, and provides clarity on which camp's judgment is compromised.

 

Why Cisco and not AAPL? Seems like a rather arbitrary comparison imo.

 

Because Cisco's PE ratio in 1999 was nearly 200. Appl has been pretty low for a while now, like even under 15 until recently.

 

Not quite FUD quotes. They are direct quotes from Elon Musk and the vast majority of those it's statements he's made and to date not delivered.

He has been charged with securities fraud:
https://www.sec.gov/news/press-release/2018-219#:~:text=Elon Musk Charged With Securities Fraud for Misleading Tweets,-FOR IMMEDIATE RELEASE&text=The Securities and Exchange Commission,transaction to take Tesla private.

Madoff made his investors billions too and had that game going for years, so not sure what you're getting at.

Fact of the matter is that the car side operation from Tesla is still loss making. The only reason they're profitable is because of the carbon credits they're selling.

 

Yes.

https://www.nytimes.com/1999/08/11/business/cisco-systems-50-sales-gain-helps-it-top-earnings-estimates.html

"Cisco Systems' 50% Sales Gain Helps It Top Earnings Estimates"

 

First, imo PS is a better gauge. Second, there wasn’t the growth YoY to continue to sustain the stock. Third, picking an arbitrary moment in time in a stonk with no other correlation is just that, arbitrary.

Trending case in point = BTC

And I hope you bought that stonk I suggested to you on DM...easy 2x

 

JerryZ
IF you bought that Tesla stock at the beginning of the thread and still have you made a great move .. for sure....
best of luck to you on that ......

Now I still think it is over valued but I yield to you on this I wish I had bought Tesla back in 2014 but I thought it was over valued then and now .....
but congratulations on this investment ...

 

The other thing people forget is a Tesla is much more than a car company. It’s an Electric company, Battery company, Solar company , software company, Wait till full self driving comes out and other companies like Ford and GM license the software for their electric vehicles. That’s billions of pure profit.
I have owned Tesla since January 2019 and never sold the share. I continue to buy every month. This is my strategy with great companies. I did the same with Berkshire Hathaway in 1996 and Apple in 2004. Remember, all you need is one or two great companies for your portfolio to be hugely successful. (Pareto Principle). I am proof of that.


Sent from my iPhone using FerrariChat

 

I agree with you. Tesla is over valued currently. It’s about the future. Tesla will disrupt many industries and will dominate.
It took me a long time to buy Tesla because I always thought it was overvalued. I finally went in big in 2019. I did not want to repeat the mistake I made with Amazon.
Valuation was the reason why I never bought Amazon; it’s always overvalued. Missing Amazon in hindsight was a huge mistake. I owned it briefly made some money and sold. Very stupid. I did not make the same mistake with Apple and I will not make the same mistake with Tesla. These companies don’t come around very often. When they do you just have to go for it.

People like Musk, Bezos, Jobs, are visionary geniuses that know what society wants before we do.. They all have changed the way we live our lives on a daily basis. It’s analogous to “buying “the seller” of a Ferrari rather than the Ferrari itself. You know the Ferrari will be good if the seller is good.
I am buying Musk. So far it has worked out extremely well. Only time will tell. But as King Farquhar said in Shrek , “it’s a risk I’m willing to take”.


Sent from my iPhone using FerrariChat

 

We'll never agree.

you claim he has never done securities fraud, I provide proof he has and it's not good enough for you. This'll be a back and forth that won't have an ending as you won't believe what I say/provide proof of and I don't think Musk is Jesus.

You've done extremely well in your Tesla buy and you should be happy with that, and I genuinely am happy for you.

Me I don't trust Musk all that much. If I did I would be reaping the rewards like you are now.

Boring company (tesla tunnels), hyperloop...so many other things he's walked on with what he'll do.

 

In my humble opinion anyone who has a Tesla and thinks that is comparable to a Ferrari was never a Ferrari fan in the first place....not to mention that comparing a car that was released in 2004 to a car produced 15 years later, and an electric car, is nearly comparing apples and oranges. Drive an SF90 or even just a 488 and give me that same feedback. All wheel drive electric will never give you the full driver’s satisfaction of an internal combustion sound and feel of a Ferrari. Come on man!

 

I agree with @Bas Jaski that the tweeting is wrong, and Musk was punished for it..

But comparing to Madoff? That's a huge stretch, I mean one literally printed fake statements, the other made a Public Tweet.

*PUBLIC TWEET*

@Bas Jaski

Fine, you hate Tesla. Curious though do you also hate the following companies?

• Hewlett Packard (They bought Musk's first company)
• Paypal (I use them quite often)
• Space X (they are what my government uses to shuttle astronauts and supplies to the space station, our armed forces uses them for military operations)
• Solar City (I don't like being beholden to the grid, and I like having power even in brownouts)
• Boring Company (They just finished their first underground Tunnel in Las Vegas)
• Starlink (A lot of Fchat members have signed up, a whole thread of folks talking about it)

I mean, let's say for the sake of argument, that I agree with you 100% that Tesla is a complete sham, that the already 1 million vehicles they sold are all 'vapor ware.'

I'm curious what you think about the other 6 Musk companies too? Was HP bamboozled, but was so embarrassed they decided to not sue Musk? Should I shut down my Paypal account, is the space station photoshop, should I tell folks to tear down their solar panels (already installed) - is the Las Vegas tunnel a 'deep fake' - is Starlink a conspiracy?