YIKES: Tesla Meet Reality
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Tesla reality Tesla meet reality. Yeah. It wasn’t a matter of if it was a matter of when and another CI told you so moment here on the program. Tesla is getting crushed. Right now, again, based upon its earnings numbers and its outlook moving forward. I think the stock might be down to $180 something share I can’t remember.
Exactly. It was as high as 350, maybe even higher. Year, year and a half ago, I think 52 weeks ago, it was closer to $300 a share. Why do I say meet reality? Well, your car company, they keep trying to and Elon Musk keeps trying to trying to price it as a tech company or an AI company.
And even if you price it as in a company, it’s trading at a much higher multiple than Nvidia, for example, AI company, tech company, that’s all well and good cars have cycles and I don’t think how many different models is Tesla have at this point in time. It’s pretty much.
the same thing that they’ve had for years and years and years. They are now talking about a another car they’re going to be coming out with mass market car that’s going to run about $25,000 dollars that they’d like to have come out next year. But their growth waves with the Model 3 and the Model Y have kind of run their course to some degree.
And you got to come back. Or you got to bring something else out. I know they got the you know, the cyber truck and quite frankly, I think the cyber truck probably wasn’t the best idea. And they’re even talking, talking it down as well as far as numbers are concerned. Their margins have come down. They’ve got margins now more like a traditional auto company where they were much, much greater in the past or some competition.
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that they’re now facing at this point in time. And it’s changed the dynamic. And I know everyone keeps talking about, Musk has been promising this remote driving nonsense that you’re gonna be able to, hey, your hands off the wheel, car’s gonna drive itself. And do you think everyone is gonna be into something like that? For me, if…
You’re going to have driverless autos, that type of technology. It would seem that everybody on the road would have to be driverless. Everyone on the road, because all of the cars would need to be speaking to one another at all times so there wouldn’t be any confusion. I was actually laughing kind of on a side note. They’re running commercially the day for, I don’t know, some one of the.
pick up trucks and it was a bunch of, bunch of outdoorsmen types and they’re trailing their quad riders out to the woods for a fun day of driving. And then the guy, you know, takes his hand off the wheel and he’s just letting the car do its own. And I’m saying to myself, I don’t know many truck, people drive trucks, SUVs, that type of individual, outdoorsy types are gonna trust technology.
to be operating a car for them. I know I would never would. Never would. You couldn’t, you could sit down and you could pitch me for an hour on the wonders of some sort of driverless technology. No way, no how. I’ve been driving too long. And again, it’s not the car or the technology, it’s the other drivers on the road that you gotta worry about. And again, this is why I think that that’s a long, long way coming.
quite frankly. So again, it’s going to be a tougher period of time for Tesla. And I would expect some more weakness moving forward. Again, if they can get this inexpensive car out, they said it’s not going to be out until 2025. But again, Elon Musk and Tesla is known for their delays when it comes to their technology. The other aspects of their business, the solar and all that, it’s miniscule.
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There’s no doubt about it. They’re the leader when it comes to EVs. I mean, we all say, at least I do, I see Teslas everywhere. Everywhere all the time. But again, the people that own Teslas, their lease is up. What are you going to do? That’s part of the cycle. What happens with the lease Teslas that come in, the used ones? Because that’s big business as well. That’s a part of the entire life. The entire life.
It’s not just about selling a car. It’s about everything that goes along with that. You sell the car, maintain the car. This is all ways that car companies make money.
turn it in, they use car business, which is profitable. Then, you know, car gets older, taking the car apart, selling the parts, that’s another part of the life cycle of a car. Part of how car companies make money, part of the business as a whole. Is that going to be the case with EVs? Is that gonna be the case with Tesla? Not so sure. Watchdog on wallstreet.com.
