Tesla’s Wild Ride has Wall Street Gasping

February 5, 2020

Are we looking at a bubble or a paradigm shift?

8 Responses to “Tesla’s Wild Ride has Wall Street Gasping”

  1. pendantry Says:

    My bet is ‘paradigm shift’.

    But it’s come too late.

    • rhymeswithgoalie Says:

      Nah, I’m going with “bubble”.
      Make note that the history of “but this time is different” when gauging significant changes to the stock market generally ends up as “oh, I guess it was a bubble after all”.

  2. rhymeswithgoalie Says:

    It’s pretty clear that a whole lot of legacy and some new EV car companies (Rivian, Polestar, etc.) are going all-out to take a piece of the EV market, and there is a great variety of of nascent technologies to compete in the grid storage market, so while Tesla’s enjoying a clear lead, there is no critical aspect of the company that has a monopoly on any market. (Note that Musk has released a lot of patents to the public domain.)

    Unlike software companies, which have virtually no piece production cost, manufacturers still have to spend a significant amount for each new physical piece they make.

  3. dumboldguy Says:

    Of course it’s a bubble—-one kept alive by the greedy rich who are pouring their Trump tax cut windfall back into stocks and inflating the bubble. With any luck, it will burst before the election and hurt The Hairy Orange Rump’s chances.

  4. gmrmt Says:

    Short term it’s a bubble based on modest good news but more on investors looking for an alternative to fossil fuel stocks to park their money. Might be a good time to short but you’d be wise to consider ploughing the money you make right back into Tesla stock as it’s position as a battery manufacturer alone will provide steady profit for years to come.
    It would be ironic if the bust is fuelled by Tesla fan investors selling off with the intention of buying right back.

  5. andrewfez Says:

    Comparing it to historical stock valuations, volatility, and what you’d pay for the amount of risk involved it is in a massive bubble. Hate to say it but Energy Transfer Partners is a more reasonable buy than Tesla is for the next few years at least.

  6. andrewfez Says:

    Looking at main stream media for stock picks is like dressing a 12 year old kid up like a doctor and asking him to diagnose and treat your cancer.


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