I would be VERY careful about buying Tesla stock if I were you

Discussion in 'Stock Market' started by Old Texas Reb, Jul 31, 2018.

  1. Old Texas Reb
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    Old Texas Reb Member

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    Tesla isn't worth anywhere near the astronomical valuation the market has given it. They have had only one profitable quarter, are burning through cash at an incredible rate and can't meet any production forecasts.

    The tipping point should come this fall when Tesla is scheduled to launch a massive offering of long term debt. If that tanks, you will see the price go into free fall. If you have a position in Tesla, I would go short the stock at today's market (covered by the shares you already own).
     
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  2. Snouter
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    Snouter Can You Smell Me

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    Old Tex, give us your trades for the past year to see if you are legit! Come on, you don't know long term debt from current assets do ya punk? Who paid you to post here?
     
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  3. fncceo
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    fncceo Gold Member

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    Tesla's PE ratio from the latest earning report is 0.0. Compared to Ford which is 6.61 and Toyota at 8.54.

    It would not seem to be overvalued at all.
     
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  4. Picaro
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    Picaro Gold Member

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    What does the patent pool owned by Tesla look like? Could be worth a lot more than the current cash flow and negative equity, maybe not. With new tech it's not always profits that make a company worth a lot.

    Worst scenario is a takeover bid, maybe? Most of the time it is indeed crappy management.
     
  5. Old Texas Reb
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    Old Texas Reb Member

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    I'm not a trader, but a retiree who is a long term investor and also an accountant, so I certainly know the difference between long term debt and current assets. When a company has -0- profits, is hemmoraging cash and can't meet production schedules and when it plans to go into the market for outside long term debt to cover the shortfall, that's a danger signal to me that rough waters are ahead.

    Based on what the company has done so far, its stock price has an insanely high valuation.
     
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  6. Toddsterpatriot
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    Toddsterpatriot Diamond Member

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    The tipping point should come this fall when Tesla is scheduled to launch a massive offering of long term debt.

    I thought Musk said they didn't need any more cash raises?
     
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  7. Weatherman2020
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    Weatherman2020 Educating Libs Since 1978

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    I posted a few weeks ago how they were asking all their suppliers to cut their fees. “We are partners” BS.
     
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  8. bear513
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    bear513 Diamond Member

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    Who paid you to post here?



    Hell telsa don't even pay Union wages.
     
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  9. Toddsterpatriot
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    Toddsterpatriot Diamond Member

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    Tesla's PE ratio from the latest earning report is 0.0.

    Price divided by earnings is zero?
    You may want to recheck your math.
     
  10. Picaro
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    Picaro Gold Member

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    I didn't ask about that, I asked what their patent pool was; you seem to think it's worth zero, I think the reason why it has value is some might think its assets and patent pool are worth more than you think the company is worth, and maybe it's just ripe for a takeover.

    As for the future markets, with incomes stagnant, and wages more likely to decline, few people can afford to buy them, actually. We're selling even cheap cars with 6 and 7 year loans now, a ridiculous length of time for car loans, just to get people in them, so the market for Teslas is already small and getting smaller.
     
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