Elon's short shorts

Discussion in 'Shares & Funds' started by Drifty, 6th Jul, 2020.

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  1. Drifty

    Drifty Well-Known Member

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  2. chi.lam

    chi.lam Well-Known Member

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    Just think where they'll be in 10 years time... Scary
     
  3. Scott No Mates

    Scott No Mates Well-Known Member

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    With deLorean?
     
  4. chi.lam

    chi.lam Well-Known Member

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    Biggest company in the world by market cap, mark my words ;)
     
  5. Drifty

    Drifty Well-Known Member

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    Doubt it. They are an auto manufacturer, after all..
     
  6. Omnidragon

    Omnidragon Well-Known Member

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    Ha never short a market darling. It's like shorting APT
     
  7. chi.lam

    chi.lam Well-Known Member

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    Not sure if you're being sarcastic but this is the biggest misconception when valuing Tesla. They are NOT just another auto manufacturer.
     
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  8. Drifty

    Drifty Well-Known Member

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    How do they generate revenue again?
     
  9. chi.lam

    chi.lam Well-Known Member

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    Sure, currently most of their revenue is from automotive. But valuing a company on the stock market is forward looking and is the reason why investors buy into a stock. Future potential revenue will also come from their energy products (solar panels/tiles, battery storage), Full Self Driving/Robo taxis and Software as a Service inside their cars. They are disrupting the transport and energy sectors, both trillion dollar industries.

    Think Apple when they released the iPhone amongst a sea of dumb phones. Look where we are now. That's what investors are betting on.
     
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  10. Drifty

    Drifty Well-Known Member

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    Solarcity is a separate company.

    Tesla's scale is limited by how many physical units they can create/ship - which isn't a lot, and when you factor in stock and production costs, the margin isn't fantastic (as opposed to a software company for example).

    Don't get me wrong. I am a massive Elon fanboi. Tesla as a company is an industrial company, and it's scale is limited by its own production. At the moment the stocks do not reflect this.
     
  11. Lindsay_W

    Lindsay_W Well-Known Member

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    Doesn't Tesla own Solarcity?
     
  12. Lindsay_W

    Lindsay_W Well-Known Member

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    It's been said Tesla is a tech company that happens to currently make cars :)
     
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  13. Drifty

    Drifty Well-Known Member

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    Ahh yes you are right. Solarcity was acquired by Tesla in 2016.
    I was watching a video the other day when they were talking about it being separate - must have been from pre-acquisition! My bad!

    Space x is definitely separate.
     
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  14. Omnidragon

    Omnidragon Well-Known Member

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    Here's another potential Tesla being listed soon. Ant
     
  15. Fargo

    Fargo Well-Known Member

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    Tesla is a tech company. It is becoming the largest owner of data required for autonomous vehicles, it is also tech for its energy storage, which could be much bigger than the car buissiness. People buy the car for the technology it uses.
     
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  16. Lindsay_W

    Lindsay_W Well-Known Member

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    Can only imagine how much money Spacex is making, private company too, $$$
     
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  17. chi.lam

    chi.lam Well-Known Member

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    500k units this year and only 0.5% of the total global automotive market. They're forecasting 40%-50% unit growth annually. Margins are at 20% which is fantastic for automotive. Funny you mention software. They charge $8k USD per FSD purchase and it appears roughly 50% of buyers opt for that. Super high margin revenue there. Software revenue hasn't even really begun for Tesla.

    I'm waiting for the Model Y to come to Oz. Apart from the tech, I think the performance, safety and AutoPilot is pretty amazing too.
     
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  18. chi.lam

    chi.lam Well-Known Member

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    This is the other company I would love to invest in but can't.
     
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  19. chi.lam

    chi.lam Well-Known Member

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    People on this forum might remember "Young Investor of the Year" Steven Mark Ryan? He's a massive Tesla fan and now has his own YouTube channel! I'm a subscriber of his channel haha
     
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  20. Lindsay_W

    Lindsay_W Well-Known Member

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    Yep me too! Used to work out of the same office as Steve - He was onto this long ago, I distinctly remember him telling me that at $185 USD per share "they'll never be this cheap again"