$Tesla (TSLA.US)$ One important factor that classic-school a...
$Tesla(TSLA.US$ One important factor that classic-school analysts seem not to consider, is that there are around MILLIONS of TSLA shareholders and traders with a high resilience and a strong identification with the company’s goals and brand. Some critic (and all the haters) would argue that it has become some kind of fanatic cult (I would rather compare it to a sports fanship, PLUS economical convenience), but guess what ? Which car will all those fans and investors buy as soon as they have the buying power and which brand will they keep spreading FREE publicity for ? Tesla, of course. NO OTHER car maker can count on that, maybe except some taylor-made sport or luxury car.
That explains part of TSLA resilience and why big shorters have always failed, losing something like 60 Billions along the years.
Consider that the “relevance” of what I’m talking about is big, but Tesla is still building ”normal” cars (with the exception of the Plaid, which is not a mass car). Imagine the level of craziness for Tesla with the mass production of the Cybertruck (which is much more revolutionary than the already revolutionary Model Y) and with the coming flagship: the new Roadster, that will ERASE at 1/10 of the price every Bugatti or electric Rimac Nevera which is actually the fastest car on earth. By the way, “nevera” means REFRIGERATOR in Spanish: exactly what it will look like compared with the Roadster in 2024 😂😂😂
That explains part of TSLA resilience and why big shorters have always failed, losing something like 60 Billions along the years.
Consider that the “relevance” of what I’m talking about is big, but Tesla is still building ”normal” cars (with the exception of the Plaid, which is not a mass car). Imagine the level of craziness for Tesla with the mass production of the Cybertruck (which is much more revolutionary than the already revolutionary Model Y) and with the coming flagship: the new Roadster, that will ERASE at 1/10 of the price every Bugatti or electric Rimac Nevera which is actually the fastest car on earth. By the way, “nevera” means REFRIGERATOR in Spanish: exactly what it will look like compared with the Roadster in 2024 😂😂😂
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TESLA holder and trader. Economics and tech studies, writer, traveller and chef for passion. FREE in SouthAmerica 😎
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sincere Rhino_3179 : well I for one will, would not buy anything that puts money in his pocket. Sometimes being rich is not as important as what I feel about a person or company. just saying
TeslaSmurf OP : Of course Tesla’s haters won’t buy a Tesla, but that is rarely a significant thing for the company’s balance, as most of them don’t have the money to buy one.
JT2802 : There are rather high levels of uncertainty for Tsla’s performance next quarter as well isn’t it? Shanghai because of China’s zero Covid policy and lock downs while Berlin because of Russia’s threat to stop the gas…..not mentioning the twitter’s saga. Don’t think all these are good for tsla. Btw you are right about less people being able to afford a tsla cos it’s price goes up non stop lol. I think for tsla to shoot back up to 1000 is definitely possible for such a strong growth company but these external factors that’s affecting business needs to be resolved first.
TeslaSmurf OP JT2802 : Those are external factors that may affect any other company in China (almost every car-maker in the world has a plant in China and in fact VW lost much more sales without a covid lock down (their plant is not in Shanghai). Ford, Mercedes, Stellantis, WV they have all factories in Germany which would suffer much more than Tesla (still producing a few cars there) in case of a worse problem with Russia. Tesla has the new Texas gigafactory: 9 times the size of Shanghai… By the way: Shanghai has just been upgraded in a record time to 1 million capacity and a new plant is getting built in a near by area to double that capacity in 2024. As you can see, Tesla’s conditions are WAY better than any automaker (especially for the profits, though Q2 results weren’t as good as Q1 for the covid shut down). Q2 numbers are already priced in, as the quarter finishes in June unless the earnings are worse than expected. What will make the stock move high or low is the general market’s situation, as for the other stocks, and…. The FUD, also when it has little or nothing to do with Tesla’s fundamentals. But that is what gives TSLA its great volatility too = trading opportunities.