Tesla: The Great Short

[legion]

Originally Posted by sammyg2

LOL, good one.


PE Ratio (TTM) 999.79

And what generally eventually happens to companies that have a P/E that high?

[svandamme]

Originally Posted by legion

And what generally eventually happens to companies that have a P/E that high?

Well it's an indication of expectation.
the higher the number vs others in similar market, the higher the expectation that this company is going to see much higher future earnings.


If you ask me, if it goes to high, it means the expectation is harder and harder to be met. At which time the bubble will burst when it fails to meet that expectation.

[sammyg2]

Originally Posted by legion

And what generally eventually happens to companies that have a P/E that high?

Generally, the price gets driven up higher and higher and higher and higher by people who ignore fundamentals and invest their brand new 401ks based on rainbow-colored unicorns. why do you ask?

Speaking of which, if anyone out there has trouble differentiating between reality and fantasy .... can I borrow $100?

[Ronbo]

Originally Posted by biosurfer1

So the plan is to announce a $25,000 Tesla while people are still waiting for the $35,000 Tesla?

To be fair, the Standard Range Model 3 is about $36K and has been available for a couple years. It’s not advertised on the website but can be ordered through a showroom.


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[sammyg2]

After you order a new tesla 3, how long does it take to get it?
I hear it was as long as 3 months but that was a few years ago.

[MBAtarga]

Wow! - joining S&P 500. Up $53.71 after market right now - $461.80 (11/16/2020 10PM ET)

[Ronbo]

Originally Posted by sammyg2

After you order a new tesla 3, how long does it take to get it?
I hear it was as long as 3 months but that was a few years ago.

Seems to depend on the timing of the order and what’s in inventory. Mine took about 2 ½ weeks.


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[Rusty Heap]

Tesla is a FUN stock to own..........

[legion]

You'd think the most valuable car company on the planet would rank a little higher. But Tesla has always been a "lifestyle brand"--more about how it makes you feel than what the product actually is.

https://www.foxbusiness.com/markets/consumer-reports-tesla-reliability

Consumer Reports put Tesla in 25th place out of 26 total brands in this year's edition of its annual auto reliability brand rankings.

Mazda, Toyota and Lexus ranked in the top three spots for most reliable new cars, but Consumer Reporters noted in its analysis that brands ranking in the bottom third made "significant improvements" in 2020.

Rankings are "based on the average predicted reliability score for vehicles in the brand’s model lineup," according to the analysis.

The Tesla Model Y's reliability score is partially to blame for the electric automaker's 29-point average. The car received only five points on CR's 100-point scale, with the average score for most brands being between 41 and 60 points.

The Model 3 received the highest score with 53 points; Tesla models X and S followed with 31 and 26 points, respectively. Lincoln fell behind Tesla with an average rating of just eight points.

While Consumer Reports labels the Model Y, which was released in January and costs between $49,000 and $59,000, as being "quick, agile and roomy," the magazine said the electric vehicle is "plagued with the same distracting controls and nearly as stiff of a ride as the Model 3," which costs between $35,000 and $54,990.

Model Y owners have reported issues with the vehicle, including parts of the body that do not align and bad paint jobs, according to Consumer Reports.

Tesla recalled some 2020 Model Y vehicles in September after a software error resulted in failing trailer brake lights.

[RWebb]

Porsche is a lifestyle brand too - but their panels fit together

[sammyg2]

Originally Posted by Rusty Heap

Tesla is a FUN stock to own..........

I believe I've had enough fun for now, sold it.

[flipper35]

I wonder if all the new cars will come with better MMD storage than the older cars.

[sammyg2]

new toy

Nasdaq 7HANDL Index ETF
HNDL

Fairly safe* ETF
roughly 7% return from dividends/yr

got a hundy in it, prolly gonna do anuther 300k in a few weeks.
YMMV


*nothing is really safe.

[MysticLlama]

Originally Posted by sammyg2

new toy

Nasdaq 7HANDL Index ETF
HNDL

Fairly safe* ETF
roughly 7% return from dividends/yr

got a hundy in it, prolly gonna do anuther 300k in a few weeks.
YMMV


*nothing is really safe.

The expense ratio on that seems terrible. 1.62% for an ETF comprised of ETFs? What am I missing?

[RWebb]

maybe you're paying for the leverage

[sammyg2]

Originally Posted by MysticLlama

The expense ratio on that seems terrible. 1.62% for an ETF comprised of ETFs? What am I missing?

That's true and I am usually adverse to anything with a high expense.
I've got most of my stuff in conservative investments and expect 4 to 5% ROCE in long run, which is fine.
Bit I figured if I can bump a portion of that to 7% return or so, the kids would thank me in 30 years.

BUT ....... I've found something about this ETF that makes me nervous: derivatives.
It's at least 50% bonds but balances it out with higher risk red flag stuff.
Fer instance, 7.5% into MBB (MBS bull sheet through fnma and such).
Didn't we learned that lesson in 2008?
With so many peoples out there who are NOT making mortgage or rent payments, I don't want anything to do with mortgage derivatives. House of cards.
Oh, but it's all covid's fault, it has nothing to do with poor planning and personal irresponsibility.

I may hold on to what I have but don't think if I'll put any more into it for now.
More homework to do.

[silverc4s]

My TSLA is up 600 pct since December last. I plan to hold it for another 5 years at least.

[RWebb]

it depends on how they are using derivatives - sometimes they are used to reduce risk

but... how are they getting that 7% ??

some growth stocks or mutual funds would be good for the kids

[sammyg2]

They have a monthly distribution that averages around 14-1/2 cents/share.
That's the 7% they talk about.
But with so much invested in relatively low-yield bonds, I'd think the rest would have to be more risky to get that return. They also mess with shorts, maybe that's part of it.
something just doesn't feel right.

[RWebb]

what is their history?

and is that history under the current mgmt. team?