Buying a Tesla vs buying TSLA

[davesaddiction]

If a person, one year ago, spent $40,000 to buy a Tesla Model 3, that car is likely worth $35,000 (or a little more) today.

If that person, one year ago, had bought TSLA stock with the same money, those shares would now be worth $340,000.

#hindsightisabitch

[davesaddiction]

...in an email to employees Musk acknowledged that Tesla's actual profit margin is fairly low, only about 1%, and that the stock price is due to investor expectations of future profits rather than recent results.

"If, at any point, they conclude that's not going to happen, our stock will immediately get crushed like a soufflé under a sledgehammer!" he wrote in the email, which was first reported by Electrek. Tesla did not respond to a request for comment about the email.

The email was primarily focused on the importance of finding even small cost savings in the car building process.

"This a tough Game of Pennies — requiring thousands of good ideas to improve part cost, a factory process or simply the design, while increasing quality and capabilities," Musk wrote. "A great idea would be one that saves $5, but the vast majority are 50 cents here or 20 cents there."

[krustywantout]

@davesaddiction Great point. This also is true for most depreciating asset vs investment debate. Maybe not the same level of return but I think most people will come out ahead if they invest their money. The other argument is that if you had $40k in cash to buy a Tesla, you most likely have investments and are doing alright.

[davesaddiction]

@krustywantout Most people, but I'm sure there are some that stretched to get out of their Prius and into a Tesla (granted, these would be borrowing money to do so - borrowing money to buy individual stocks is a very bad idea).

[davesaddiction]

If I'd bought APPL stock in 2003 instead of one of their pricey Power Macs, today it'd be worth...

$1,067,500

[krustywantout]

@davesaddiction The stock is fueled by people who think Tesla is a technology company that will overtake the car industry. Plus, the increase in retail traders has let "amateurs" into the stock market just like when E trade and like started. Plus with work from home and pandemic boredom + liquidity, people are betting on Tesla.

Maybe Tesla will become a major car company one day but they are not like Amazon which was very unique in the way they did business even though they weren't profitable. Making/assembling widgets (cars) is very hard and like Musk says, when you have thousands of components in a car, every $0.10 or $0.20 cents makes an impact to profitability.

[davesaddiction]

@krustywantout

https://seekingalpha.com/article/4391913-tesla-s-and-p-500-forcing-big-money-bears-to-start-buying-much-fun

It has and will be interesting to watch (from the sidelines). While I do wish I'd thrown in a $100 bet when I first learned about them (like I should have with Bitcoin), this rise clearly can't last forever. But it's lasted way longer than many thought it would.

[A Former User]

@davesaddiction ...honestly that's part of why I don't have the product...

[davesaddiction]

@krustywantout

I think it's relevant that TSLA is public while SpaceX is not...

[rctothefuture]

@davesaddiction Don't even mention Bitcoin... Somewhere I have a wallet with at least 2 coins in it...

[davesaddiction]

@rctothefuture said in Buying a Tesla vs buying TSLA:

Somewhere

LOL!

[rctothefuture]

@davesaddiction its either on an old laptop that I can't find anywhere in storage or at my mothers house. I haven't been assed to try and find it, let alone hope the harddrive is still good. Damn digital currency.

[davesaddiction]

@rctothefuture I assume you do realize that 2 bitcoin is $38k... LOL

Get assed and find 'em!

[Qaaaaa]

Yeah, but you can't drive a stock

[davesaddiction]

@qaaaaa You could drive a McLaren 720S with your initial cash still in your pocket!

[Highlander]

@davesaddiction I distinctly remember my Aunt and uncle selling their apple stocks around that time and they made a killing on it.

[davesaddiction]

@highlander They sold in 2003? Imagine if they'd held it!

[Highlander]

@davesaddiction I know, It's absolutely ridiculous. I think they bought a couple thousand shares in the early 1990's. My uncle worked at apple to 2006 I think, then his Parkinson's got pretty bad and he couldn't work anymore.

[rctothefuture]

@davesaddiction problem is, if I don't find it I'll be crushed. If it's at my Mom's, I know I'll get charged a "storage fee".

[dogisbadob]

If only GM had sold the Cobasys patents to Elon instead of Exxon

(the patents have since expired)

[LooseonExit]

@davesaddiction

Do they still build cars in tents? Instead of cost savings and production quantity, they should work on build quality first. For having so much funding available I'm surprised they still have manufacturing issues. Well, I'm not, but still.

I still have no TSLA stock. I get that I'm missing out but I'm still staying far away lol.

[davesaddiction]

@highlander Oh man, that's rough...

[davesaddiction]

@looseonexit This is from August:

https://electrek.co/2020/08/06/tesla-production-increase-fremont-factory-new-parallel-line-under-tent/

[LooseonExit]

@davesaddiction

Thanks, I should have looked on the Googles. As someone that's worked in manufacturing facilities in the past, Tesla's facilities and QA/QC has always been interesting to say the least, usually in a rubbernecking sort of way.