Easy come, easy go. Easy come again?
This, as evidenced by the graph below could be, perhaps the best description of Tesla's stock price:
Statistical arbitrage at its purest form: the stocks which prices go down the most, go up the most during the next upturn.
I still think, however, Tesla Inc. is worth 120 billion USD. If you take out subsidies, Tesla is still unprofitable. And forgive me for asking, but isn't capitalism about making profits? Increasing wealth by creating value, not blowing bubbles?
Anyhow, the Internet took 60 years to commercialise and birth Alphabet, Amazon, Meta. Elon Musk's bet is long-term. If the world's richest man up until two months ago and the brilliant engineers Tesla employs manage to achieve a technological breakthrough, which allows Tesla to produce electric vehicles profitably, despite the high usage of base, ferrous metals, which make the latter impossible as of today, this could make Tesla worth, not only 1.24 trillion USD again, but even more than 2 trillion USD.
Simply because the electric vehicle technology edge production and know-how Tesla possesses, would make it quasi oligopolist, if not monopolist on the electric cars market.
Hence, the logical hedging by Volkswagen, Toyota, Ford etc., which are all entering electric vehicle production, even though they realise that in the short term, they are going to loose billions of USD.
Feb 02/09/2022US:TSLA$310.6667
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