(no title)
DoesntMatter22 | 12 days ago
That being said, yeah, profits were down a bit but a lot of that was stock compensation and other things. In practical terms they went from a cash position of 36 billion to 44 billion.
They are in a phenomenal position financially as they have very little debt. By comparison GM made 2.7 billion and Stellantis lost 20 billion.
Tesla is in such a great cash position that Apple only has about 10 billion more than them in cash.
The future looks fantastic.
ben_w|12 days ago
Selling shares for more than the company made in its entire existence, demonstrates the shares are overvalued.
> By comparison GM made 2.7 billion and Stellantis lost 20 billion.
2.7/3.7 = 0.73; GM's market cap is $77.67bn, using them as your framing of the problem gets you to a Tesla market cap of $106.40bn, not their actual ~$1.5T.
And Toyota made 40-45 billion USD profit for each of the last few years, i.e. more than Tesla in its lifetime, while having a market cap that's currently $316.8bn.
Telsa, market cap $1551bn, about 5x that of a company which makes more each year than it did in total, is overpriced. Especially given how harshly both Tesla's profits and sales are declining even in otherwise growing markets.
Telsa could shift the decimal point on its market cap one place and still be overpriced.
Given what they are as a business, they are not in "a phenomenal position financially", they are in an OK position for a normal boring traditional car company and a terrible one for a trillion-dollar market cap club company.
(Numbers from companiesmarketcap.com, in case anyone complains those are out of date).
DoesntMatter22|10 days ago
Tesla is far more than a car company. Even someone who hates them can recognize that