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Business, Economics, and Taxes: Capitalism. Yay? >=(

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ticapnews said:
Alexa, what is the perfect metaphor?
"The stock price of Tesla crashing while the company is on auto pilot."
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e62.gif


You saying dropping below $110 was bad? (currently $108.62)

Which do you think is hurting more:

A) his ridiculously off the wall behavior and sucking up to fascists and Nazis

or

B) owning a company where 95% of the customer base is wealthy liberals and spending all of your time attacking and "owning" liberals?
 
Handyman said:
e62.gif


You saying dropping below $110 was bad? (currently $108.62)

Which do you think is hurting more:

A) his ridiculously off the wall behavior and sucking up to fascists and Nazis

or

B) owning a company where 95% of the customer base is wealthy liberals and spending all of your time attacking and "owning" liberals?
Click to expand...

It might actually be time to buy Tesla stock.

I assume his erratic behavior relating to Twitter isn't helping matters, but I expect that a large portion of the stock drop is attributed to other matters. I'm not sure what the new car sales data is looking like, but I assume the outlook for luxury car sales as we possibly enter a recession isn't great. Couple that with many more competitors in the EV market and the overly rosy picture for Tesla that drove the rapid run up of its stock is probably correcting itself now.

That said, EV's are still the future, and there is a ton of growth opportunities there, eventually, and Tesla is going to get its share.
 
SJHovey said:
It might actually be time to buy Tesla stock.

I assume his erratic behavior relating to Twitter isn't helping matters, but I expect that a large portion of the stock drop is attributed to other matters. I'm not sure what the new car sales data is looking like, but I assume the outlook for luxury car sales as we possibly enter a recession isn't great. Couple that with many more competitors in the EV market and the overly rosy picture for Tesla that drove the rapid run up of its stock is probably correcting itself now.

That said, EV's are still the future, and there is a ton of growth opportunities there, eventually, and Tesla is going to get its share.
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P/E for TSLA is about $34.6. P/E for the S&P 500 is about $20.

My take: long-term for TSLA is that they’re headed for a takeover by one of the big players. The company has valuable IP, but their build quality is Fiat bad. With Elmo running the company, they will have to be near unrecoverable status before he even realizes there’s an issue. The board may push for something sooner, but it takes time and golden parachutes for the company to oust him.
 
Hovey,

Unless you think Tesla is going to be bought by one of the major car companies (or you plan to sell within a year) I would disagree with you. You are much better off buying into battery companies or companies that make charging stations. If Elon was half the genius his psychos think he is that is what he would be pivoting towards...

I have said all of this before but Tesla's days are numbered as a name brand and Elon knows it. (which is why he campaigned against expansion of the electric grid, adding power stations around the country and incentives for buying EVs) Right now Tesla is seen as a luxury brand (hence the price) and in comparison to many of the options out there has a better track record and specifications. (especially trip mileage) Why buy a Nissan Leaf or Chevy Volt when a Tesla gets more for the money and also has a level of prestige to it? It is worth the downsides...but that calculus is changing and fast. Ford, GM, Toyota, Hyundai, VW and others are already putting out pretty solid alternatives (some liked way better than Teslas like the Ioniq or the Mustang EV or even the newer Leaf's that get mid 200s in mileage per charge and none of them seem to suck in the winter) and while they may not be perfect, they are worth not dealing with the Tesla disadvantages. Within 2 years it won't even be a concern anymore.

Tesla's are harder to maintain and very expensive to do so. Parts and repairs can be a logistical nightmare. (my buddy routinely has his in the shop for weeks at a time even for basic stuff) Again people put up with it because it is the best option. The second you can have a decent electric car made by a name brand that gets the mileage you need and can be maintenanced at any number of shops in every city and town in the country Tesla is DOA. It won't disappear mind you but the name cache will be gone, the uniqueness will be non-existent and it will not have much in the way of brand loyalty unlike the legacy car companies. It will become the "collector" car...for the hardcore fanatics but not for the everyman. Even if they make affordable options it won't much matter.

Now to give Elon credit, he knew this. He knew that if Biden got his wish and the EV program was expanded Tesla was in real trouble. Tesla just hasn't been able to make the headway it wanted in the market and operations haven't been expanded enough to really push for more market share. There is only so many cars a plant can make, and when you have a limited number of plants well...yeah. And now China is exposing more issues with expanding and that is a major driving force into why Tesla hasn't rebounded at all. They are small fish in a huge pod trying to pretend they are a predator to try and scare away the predators to survive.

So I guess it depends what you are in for. If you think Tesla will rebound short term and you can buy the dip and wait then yeah go for it. If you think this is a Blue Chip you can hold onto until you die...well I am not sure that is the way to go unless Tesla gets bought out by someone else.
 
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St. Clown said:
P/E for TSLA is about $34.6. P/E for the S&P 500 is about $20.

My take: long-term for TSLA is that they’re headed for a takeover by one of the big players. The company has valuable IP, but their build quality is Fiat bad. With Elmo running the company, they will have to be near unrecoverable status before he even realizes there’s an issue. The board may push for something sooner, but it takes time and golden parachutes for the company to oust him.
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Do the Saudis own any car companies? I am sure they will help him out ;^)
 
Proud2baLaker said:
The point-to-point style system Southwest uses (versus hub and spoke style by most other airlines) is apparently more prone to big issues when something like weather disrupts things and causes delays. A larger weather system like the one just experienced through much of the US can really cause havoc in that kind of system I guess. I feel like they had a similar problem another time in the last year or two when tons of flights were cancelled across the country but Southwest represented a disproportionate number of them.
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Most people here seem to know a whole lot more about the operations of the airline industry than I do, but I thought SWA did use a hub system? Example - if you're on the east coast you almost can't get anywhere without going through BWI.
 
Swansong said:
Most people here seem to know a whole lot more about the operations of the airline industry than I do, but I thought SWA did use a hub system? Example - if you're on the east coast you almost can't get anywhere without going through BWI.
Click to expand...

I'm also confused about why the "point to point" deal is such a big deal. SW very much uses the hub system for a good chunk of their destinations.

It's not quite as expansive as other airlines, especially on the West Coast, but they still have most of the country covered.
 
Jimjamesak said:
In fairness, SWA goes to great lengths to not describe their network as a hub system. And yeah it’s not a traditional hub system like other airlines.
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It wasn't initially, but it basically is at this point. They just have 3-4 medium hubs and 2-3 smaller hubs rather than the 3 ginormous ones the legacy airlines have.
Denver, Las Vegas, Chicago Midway, and BWI are the main ones, with St. Louis and Dallas-Love as the smaller ones. The vast majority of connecting flights will go through one of those 6 cities. It will occasionally still have some random point-to-point flights to places like Orlando or Cancun or something that bypasses their hubs, but not a ton.

And let's stop treating Southwest like Spirit or Frontier. It's the largest domestic carrier these days. The legacies only surpass it with international flights.
 
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