Tesla was overvalued when it hit 50$ pre stock split. Its continued rise over a period of years to one of the most valuable public companies is just mind boggling. But I think even now there is a lot of hesitance in shorting the stock as entire fortunes have been lost trying to predict a share price correction.
Tesla is nothing more than an elaborate stock pumping exercise built on a business of selling crappy cars to techbros. It’s valuation is propped up by lies, hype and virtual signaling. It also can’t survive without copious amounts of government subsidies and low interest loans, since the car business is so capital intensive. At some point, all of these problems will come to a head. It’s a matter of when, not if, that Tesla collapses in some form. Though it may be bought out before formally filing for bankruptcy.
When considering shorting stocks it's important to remember one of Keynes' better quotes, "the market can remain irrational longer than you can remain solvent."
I'm expecting the company to go out of business and all of the cars to just brick.
Might be a good move to figure out how to hack the software and/or reclaim the batteries for resale, might be kinda lucrative.
On the other hand, if they do brick overnight it might be dangerous, and I hope Tesla demonstrates some responsibility to the lives and safety of their consumers. I don't expect them to, but I hope so.
Even if they don't fail, knowing how to hack them, how to replace the Tesla computer with your own that functions without Tesla approval, how to make the car function without self driving that might lock up the tires at highway speeds... These are valuable skills to have.
I don't trust the structural enough to use even if cheap, based on everything else. I could see breaking it down and using specific parts in a custom build using a real car as a base though.
They are "too big to fail now". If they pop now, the ruins will be bought quickly. The car won't be allowed to brick. But it is good to highlight the issue that modern car need to be independ of the existence of manufacturers servers. I'd go further and regulate that it must be documented protocols and you must able to change the servers used if you choose.
Same with any computer, if you don't have admin, you don't own it.
I’m expecting the company to go out of business and all of the cars to just brick.
I agree that Tesla will not be able to maintain their current position, but currently Tesla is one of the most profitable car companies in the world. So chances they'll go out of business anytime soon are very slim.
That said I think they are currently about at their height, with a peek market recognition advantage in EV, earned from their first models where everybody else only made tiny lame city EVs with limited range. Now the competition is catching up and even sometimes surpassing Tesla, and the EV market is in a slump. This is a very different situation for Musk and Tesla to handle, and time will show how well they do that.
Because what you really want is a car that specifically depends on long term software updates, and is frequently the target of product recalls, from a company in financial freefall.
Speaking on his social media platform X over the weekend, Tesla supremo Elon Musk said price adjustments are an essential part of doing business in the auto industry.
That was followed not long after by the company asking shareholders to reinstate Musk's $56 billion pay package that was recently voided by a Delaware court – again, bad timing given the state of Tesla lately.
Along with cutting prices over the weekend, Elon Musk also postponed a scheduled trip to India in which he was predicted to announce Tesla's expansion into the country.
EV sales have generally been on a decline of late, putting some of the world's biggest manufacturers – like Tesla and Li – in a relatively tight spot.
Tesla recently announced plans to kill its low-priced Model 2 vehicle – a seemingly ideal move when consumers want lower priced electric cars.
PS: Mercedes now reckons it's the first automaker to sell actual self-driving cars in America that don’t require drivers to keep an eye on the road.
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The company that straight up stole porsche car designs to build 'their' flagship? It's not going to be available in the west until they can actually build their own cars.