Are tesla shares now underpricced ?

[Dekster]

Elon Musk sells new $3.6bn tranche of Tesla shares

Latest selloff takes total sale this year to $23bn and follows loss of world’s richest man title

www.theguardian.com

Does the fall in value represent a good buying opportunitty ?

I normally steer clear of companies where the management is selling stock.But the reasons for thee musk sell off are not related to tesla.

Having said that the musk factor is a shadow over the companies prospects.I would expect the CEO to actually run the company rather than piss about on twitter all day.

So, buy or ignore ?

Ignore. It would need to half again before I would considered it. That company's future is in its energy storage operations, not its cars.

 

[DudleySmith]

Ignore. It would need to half again before I would considered it. That company's future is in its energy storage operations, not its cars.

Musk shifted to buying mines for his batteries. They're far less hassle to make and peddle than cars, which are only going to get more expensive, not less, as all the tax scams and free govt grants have started a stampede into the biz. Just another bubble in the making, and Tesla stock is grossly over-valued and nothing left to bleed out of it.

 

[Nobody911]

My views : Buy lowest, sell highest = Best strategy

I'd probably ignore if I was a TSLA shareholder( long-term ).

Facts:
1) Tesla, Inc. (TSLA)

Last Closing Price: 123.18 (2022-12-30)

Tesla, Inc. (TSLA) had Book Value Per Share of $10.01 for the most recently reported fiscal year, ending 2021-12-31.

2) Our global EV forecast is for a compound annual growth rate of 29 per cent achieved over the next ten years: Total EV sales growing from 2.5 million in 2020 to 11.2 million in 2025, then reaching 31.1 million by 2030. EVs would secure approximately 32 per cent of the total market share for new car sales (see figure 2). Annual car sales are unlikely to reach pre-COVID-19 levels until 2024. However, the pace of recovery is forecasted to be a result of a slowdown in ICE sales; EVs will continue to have a positive trajectory during the COVID-19 recovery period and may well end up capturing a disproportionate share of the market in the short term.

Deloitte expects that by 2030 China will hold 49 per cent of the global EV market, Europe will account for 27 per cent, and the United States will hold 14 per cent.

Source:
1) Tesla, Inc. (TSLA) - Book Value Per Share (Annual) – Tesla, Inc. (TSLA) - Book Value Per Share (Annual)
2) Electric vehicle trends | Deloitte Insights – Electric vehicles

 

[whoisit]

I'm kind of leary of the EVs at the time. Maybe they will be safer after a few adjustments?

 

[Michelle420]

Elon Musk sells new $3.6bn tranche of Tesla shares

Latest selloff takes total sale this year to $23bn and follows loss of world’s richest man title

www.theguardian.com

Does the fall in value represent a good buying opportunitty ?

I normally steer clear of companies where the management is selling stock.But the reasons for thee musk sell off are not related to tesla.

Having said that the musk factor is a shadow over the companies prospects.I would expect the CEO to actually run the company rather than piss about on twitter all day.

So, buy or ignore ?

Buy it will go back up. They are good cars but Elons management sucks.

 

[Dekster]

I'm kind of leary of the EVs at the time. Maybe they will be safer after a few adjustments?

Lot of players in that field. If I were just looking for eventual upside in EV's, I would probably buy and hold Nissan over a very long window.

 

[Toro]

No.

Tesla is probably underpriced somewhere under $30-$50.

 

[Roadrunner76]

Tesla is a MEME STOCK and has a CULT FOLLOWING. It acts like bitcoin,,,up big,,,,down big. If you have the nerve to ride out the dips, you may be ok.

Who in their right minds is in the market today when we are staring the GREAT RESET in the face ? ??? Like Klaus Schwab said,,,,ze world of 2019 is gone, vee are never going back to that world.

Im hoping 30 yr T bonds yield hits 7% or higher like back in 1980.

 

[DudleySmith]

Im hoping 30 yr T bonds yield hits 7% or higher like back in 1980.

They need to be around 12% or more, but 7% is better than where they're at now.

 

[luiza]

Am not sure I have the guts to buy in front of the total market collapse .

But I believe the upward short term potential is huge -- $110 back toward highs of $600 to $700 is obvious .

Longer term , I would steer clear of Tesla as electric cars are a debatable proposition given present battery technology

 

[Couchpotato]

I disagree. And I’m not alone. Hyundai just started construction on a plant to build up to half a million EV’s a year in Georgia. In fact I drive by it regularly. They are spending $5.5 Billion to build this plant. Nobody is going to invest that much money on a fad or accessory.

https://www.usnews.com/news/business/articles/2022-10-25/hyundai-breaks-ground-on-5-5b-electric-car-plant-in-georgia

The Hyundai Kona starts at $33k. So we aren’t talking about a choice between a second home at Vale and a car. Easily affordable by middle class. And able to run around town without any problems. Which is what most people do in their cars.

The bigger car starts at $41k. And I spent that much ten years ago on a Toyota Van.

There is a market for them. The company Canoo I mentioned is building a run of several hundred Vans for delivery drivers. Companies like Fed-Ex.

The arguments you are making were made when Tesla started. And the predictions were that it would fail in five years. Not so far. But failure is always an option. Ask Saturn Automotive.

Because you don’t see a use, you assume nobody does. But other people do see a use. And they see the way to integrate these vehicles into their lives.

My biggest issue with the EV's is how are we going to power them? The infrastructure build out would have had to have started 5+ years ago to be ready 5+ years from now to support any significant number of EV's on the road. It's not just a power generation problem (which is a huge problem) charging stations as well need to be built and have that power run to them. Most people would need to have their home electric service upgraded and a 220V circuit run from their existing panel box to their garage or where ever they are going to charge their cars at home. What happen at apartment complexes and in cities where people dont necessarily park their cars at their residence?

We had a small cold snap in the NE over Christmas and there were rolling blackouts. People were losing power for 4-6 hours at a time. If that amount of strain on the grid requires shutting off the power what's going to happen when a significant number of people are plugging in their EV's?

These issues arent ones that cant be overcome, I just dont see how they are overcome in the timeline everyone is speaking of.

 

[SavannahMann]

My biggest issue with the EV's is how are we going to power them? The infrastructure build out would have had to have started 5+ years ago to be ready 5+ years from now to support any significant number of EV's on the road. It's not just a power generation problem (which is a huge problem) charging stations as well need to be built and have that power run to them. Most people would need to have their home electric service upgraded and a 220V circuit run from their existing panel box to their garage or where ever they are going to charge their cars at home. What happen at apartment complexes and in cities where people dont necessarily park their cars at their residence?

We had a small cold snap in the NE over Christmas and there were rolling blackouts. People were losing power for 4-6 hours at a time. If that amount of strain on the grid requires shutting off the power what's going to happen when a significant number of people are plugging in their EV's?

These issues arent ones that cant be overcome, I just dont see how they are overcome in the timeline everyone is speaking of.

In 50 years, everyone will be driving an EV or other alternative power vehicle. Your electricity will come from Nuclear, Solar, Wind, and perhaps geothermal. The reason? There won’t be enough oil to do anything else.

How Much Oil is Left in the World? - Drillers

The last 10yrs: the industry worried about peak supply, before the 2014 crash, then peak demand due to energy transition. How much oil is left in the world?

drillers.com

We have depleted the easy to get to oil. That is why we are looking at shale and oil sands. It is why we are drilling in ever deeper water.

When that oil is gone we aren’t just talking about the death of internal combustion. We are talking the death of a hell of a lot more. Lubricants? Plastic? Asphalt? Where do you think those come from?

The more we drag our feet the less there is.

Even the optimistic there is nearly unlimited supply of oil believers plan on insane science for their future.

Don't worry, we'll never run out of oil - Interesting Engineering

When will we run out of oil? 50 years? 100? As it turns out, we may never actually run out of this incredibly useful substance.

interestingengineering.com

We will somehow mine plastic trash to turn it back into oil. Or we will go out in the solar system and find the oil and bring it back.

Really? That’s the plan? Interplanetary tankers to bring oil home to refine it to fill the pick up trucks of the future? How expensive will that be? Gasoline would be two thousand dollars a gallon in that scenario.

My point is no matter what path we decide upon we have problems. We have economic issues no matter which way we go. And sitting down and denouncing the other side is as predictive as punching yourself in the groin.

And that is all we are doing. Pointing out how dumb the other side is. We aren’t looking at the issues realistically. We aren’t building more nuclear power plants. We aren’t investing in the technology we will need by the time todays kids are standing where we are now. We are just pointing at the other side shouting they are awful.

Nobody is being honest and nobody is willing to talk, or listen. They just want the other side destroyed.

So I figure the best plan is all out nuclear war. Kill as many people as possible. Wipe them all out. And then wait a couple centuries to see what comes next. Maybe they’ll be more reasonable and more United. Probably not. But there isn’t a realistic path forward from where we are. So we might as well push the button and get it over with.

 

[Couchpotato]

In 50 years, everyone will be driving an EV or other alternative power vehicle. Your electricity will come from Nuclear, Solar, Wind, and perhaps geothermal. The reason? There won’t be enough oil to do anything else.

How Much Oil is Left in the World? - Drillers

The last 10yrs: the industry worried about peak supply, before the 2014 crash, then peak demand due to energy transition. How much oil is left in the world?

drillers.com

We have depleted the easy to get to oil. That is why we are looking at shale and oil sands. It is why we are drilling in ever deeper water.

When that oil is gone we aren’t just talking about the death of internal combustion. We are talking the death of a hell of a lot more. Lubricants? Plastic? Asphalt? Where do you think those come from?

The more we drag our feet the less there is.

Even the optimistic there is nearly unlimited supply of oil believers plan on insane science for their future.

Don't worry, we'll never run out of oil - Interesting Engineering

When will we run out of oil? 50 years? 100? As it turns out, we may never actually run out of this incredibly useful substance.

interestingengineering.com

We will somehow mine plastic trash to turn it back into oil. Or we will go out in the solar system and find the oil and bring it back.

Really? That’s the plan? Interplanetary tankers to bring oil home to refine it to fill the pick up trucks of the future? How expensive will that be? Gasoline would be two thousand dollars a gallon in that scenario.

My point is no matter what path we decide upon we have problems. We have economic issues no matter which way we go. And sitting down and denouncing the other side is as predictive as punching yourself in the groin.

And that is all we are doing. Pointing out how dumb the other side is. We aren’t looking at the issues realistically. We aren’t building more nuclear power plants. We aren’t investing in the technology we will need by the time todays kids are standing where we are now. We are just pointing at the other side shouting they are awful.

Nobody is being honest and nobody is willing to talk, or listen. They just want the other side destroyed.

So I figure the best plan is all out nuclear war. Kill as many people as possible. Wipe them all out. And then wait a couple centuries to see what comes next. Maybe they’ll be more reasonable and more United. Probably not. But there isn’t a realistic path forward from where we are. So we might as well push the button and get it over with.

No one is saying 50 years. They are saying 5 or 10. These car companies are saying they are going to stop producing IC engines by then. Will all these nuclear, solar wind and geothermal plants be built and operational by then? Seeing as how the last one we built took 43 years to complete I’m pretty sure that ain’t happening.

The United States’ newest nuclear power plant has taken 43 years to build

It will be the country's first new nuclear reactor in 20 years.

qz.com

 

[EvilCat Breath]

In 50 years, everyone will be driving an EV or other alternative power vehicle. Your electricity will come from Nuclear, Solar, Wind, and perhaps geothermal. The reason? There won’t be enough oil to do anything else.

How Much Oil is Left in the World? - Drillers

The last 10yrs: the industry worried about peak supply, before the 2014 crash, then peak demand due to energy transition. How much oil is left in the world?

drillers.com

We have depleted the easy to get to oil. That is why we are looking at shale and oil sands. It is why we are drilling in ever deeper water.

When that oil is gone we aren’t just talking about the death of internal combustion. We are talking the death of a hell of a lot more. Lubricants? Plastic? Asphalt? Where do you think those come from?

The more we drag our feet the less there is.

Even the optimistic there is nearly unlimited supply of oil believers plan on insane science for their future.

Don't worry, we'll never run out of oil - Interesting Engineering

When will we run out of oil? 50 years? 100? As it turns out, we may never actually run out of this incredibly useful substance.

interestingengineering.com

We will somehow mine plastic trash to turn it back into oil. Or we will go out in the solar system and find the oil and bring it back.

Really? That’s the plan? Interplanetary tankers to bring oil home to refine it to fill the pick up trucks of the future? How expensive will that be? Gasoline would be two thousand dollars a gallon in that scenario.

My point is no matter what path we decide upon we have problems. We have economic issues no matter which way we go. And sitting down and denouncing the other side is as predictive as punching yourself in the groin.

And that is all we are doing. Pointing out how dumb the other side is. We aren’t looking at the issues realistically. We aren’t building more nuclear power plants. We aren’t investing in the technology we will need by the time todays kids are standing where we are now. We are just pointing at the other side shouting they are awful.

Nobody is being honest and nobody is willing to talk, or listen. They just want the other side destroyed.

So I figure the best plan is all out nuclear war. Kill as many people as possible. Wipe them all out. And then wait a couple centuries to see what comes next. Maybe they’ll be more reasonable and more United. Probably not. But there isn’t a realistic path forward from where we are. So we might as well push the button and get it over with.

There are enormous oil deposits off the California coast. The entire coast sits on an ocean of oil. California just banned all off shore drilling decades ago.

There is plenty of oil.

 

[SavannahMann]

There are enormous oil deposits off the California coast. The entire coast sits on an ocean of oil. California just banned all off shore drilling decades ago.

There is plenty of oil.

Odd that the oil companies don’t know about this ocean of oil. It is after all the Oil Companies that are saying that at current usage we have Fifty years of oil left.