The FTSE

[Manchester33]

Tesla is massively overvalued. They played a very good game of entering the right market at the right time. Everyone assumed they needed to hold some Tesla. But from a financial analysis perspective - its a very badly executed company. Musk is a massive liability. The established car brands are far better placed to build and sell electric cars and they will start edging Tesla out on price.

I agree with you. I think there are some good factors that you omit with Tesla though (such as their charging network and autonomous driving capabilities). They are well primed to be the main winners out of the shift to a 100% EV, self-driving market. I also think Elon Musk, despite being a marmite figure, is an incredible person. He's driven change in the industry and the world will be different in 10 years because of him.

There's no denying that Tesla deserves to be a billion-dollar company. They just shouldn't be valued THAT highly. It shows the value of a brilliant marketing team (probably around $50b dollars).

I think anyone would be mad to invest solely into Tesla. But honestly, you can say that about any individual stock. Index Funds are the way forward.

 

[Gareth Barry Conlon]

I agree with you. I think there are some good factors that you omit with Tesla though (such as their charging network and autonomous driving capabilities). They are well primed to be the main winners out of the shift to a 100% EV, self-driving market. I also think Elon Musk, despite being a marmite figure, is an incredible person. He's driven change in the industry and the world will be different in 10 years because of him.

There's no denying that Tesla deserves to be a billion-dollar company. They just shouldn't be valued THAT highly. It shows the value of a brilliant marketing team (probably around $50b dollars).

I think anyone would be mad to invest solely into Tesla. But honestly, you can say that about any individual stock. Index Funds are the way forward.

Their charging network has been a good selling point but at a cost and the political pressure is on to build a big universal charging structure.

And autonomous driving is a bit of a punt - I think its still too far out to suggest they will definitely make good money on it.

 

[inbetween]

I agree with you. I think there are some good factors that you omit with Tesla though (such as their charging network and autonomous driving capabilities). They are well primed to be the main winners out of the shift to a 100% EV, self-driving market. I also think Elon Musk, despite being a marmite figure, is an incredible person. He's driven change in the industry and the world will be different in 10 years because of him.

There's no denying that Tesla deserves to be a billion-dollar company. They just shouldn't be valued THAT highly. It shows the value of a brilliant marketing team (probably around $50b dollars).

I think anyone would be mad to invest solely into Tesla. But honestly, you can say that about any individual stock. Index Funds are the way forward.

I think Musk is completely right in the way he's doing things and that's why he'll win out. They aren't a traditional car company in the sense of how they do things and funnily enough their cars aren't actually that good, most Tesla's have terrible build quality issues for example.

Tesla differ from others because they do all of their manufacturing in-house and I think their car batteries are made in their own factories with help from Panasonic. Other companies don't have their own factories and instead rely on JIT for final assembly with most bits and pieces coming from external suppliers.

Either way, it's fine if you're making every car more or less the same like Tesla do but it's not fine when you have petrol cars and then need to switch your whole business around for EV's. Eventually they will all have to go on the same journey as Tesla (10+ years of R&D) or they'll have to resort to fighting other makers for battery supply. It's easy for them at the moment because EV's are <5% of their sales but that will change.

There will be a massive squeeze on batteries over the next few years and that's probably why the big car makers are delaying the switch as much as possible because it's going to really hurt them. It won't hurt Tesla because they've got it sorted, all they need to do is keep production up.

If anyone wants to start a battery production company, I'm game! :)

 

[west didsblue]

I agree with you. I think there are some good factors that you omit with Tesla though (such as their charging network and autonomous driving capabilities). They are well primed to be the main winners out of the shift to a 100% EV, self-driving market. I also think Elon Musk, despite being a marmite figure, is an incredible person. He's driven change in the industry and the world will be different in 10 years because of him.

There's no denying that Tesla deserves to be a billion-dollar company. They just shouldn't be valued THAT highly. It shows the value of a brilliant marketing team (probably around $50b dollars).

I think anyone would be mad to invest solely into Tesla. But honestly, you can say that about any individual stock. Index Funds are the way forward.

Absolutely right that Tesla deserves to be a billion dollar company. There's no credible way it deserves to be a trillion dollar company though.

 

[Dave Ewing's Back 'eader]

. . . . . . . . . .
If anyone wants to start a battery production company, I'm game! :)

I'm currently attempting to turn our garage into Ewing Hydrogen Inc. I'm thinking of a way of saving all the mowings from the season and turning them into hydrogen, and when it's ready to roll out I'm installing a pump on the drive! Only available in Winter, 'cos I'll have run out of grass! If it fails I'll be back on me bike.

 

[DenisLawBackHeel74]

I agree with you. I think there are some good factors that you omit with Tesla though (such as their charging network and autonomous driving capabilities). They are well primed to be the main winners out of the shift to a 100% EV, self-driving market. I also think Elon Musk, despite being a marmite figure, is an incredible person. He's driven change in the industry and the world will be different in 10 years because of him.

There's no denying that Tesla deserves to be a billion-dollar company. They just shouldn't be valued THAT highly. It shows the value of a brilliant marketing team (probably around $50b dollars).

I think anyone would be mad to invest solely into Tesla. But honestly, you can say that about any individual stock. Index Funds are the way forward.

I’ve got them in one of my tech funds (1.7%) but I thought they were overpriced at $400 a share after the split so haven’t bought them directly.....I do hold Nio and I’m now worried that when Tesla reality hits, it will take the whole sector down..

 

[M18CTID]

I’ve got them in one of my tech funds (1.7%) but I thought they were overpriced at $400 a share after the split so haven’t bought them directly.....I do hold Nio and I’m now worried that when Tesla reality hits, it will take the whole sector down..

I'm hoping that the huge difference between NIO shares and Tesla shares won't affect NIO's price too much if Tesla's keeps on coming down. Put another way, I'd say NIO shares are currently a lot more sensibly priced compared to Tesla. Tesla shares are currently about 25x the price of NIO but after the split last year it was more like 10x. NIO exploded last year but has already pulled back significantly from the ATH back in January and it could be argued that as the company is growing all the time, coupled with the share price appearing to have found good resistance at around $40, from hereon in the price ought to gradually increase regardless of how Tesla is performing.

At least, that's what I hope will happen!

 

[Manchester33]

I’ve got them in one of my tech funds (1.7%) but I thought they were overpriced at $400 a share after the split so haven’t bought them directly.....I do hold Nio and I’m now worried that when Tesla reality hits, it will take the whole sector down..

I don't think it will. It's impossible to guess what's going to happen either.

My logic is that the demand for electric cars is going to sky-rocket over the next decade. Companies like Tesla and Nio might not achieve the market share they'd like, but even if they underperform and get a small piece, the pie is going to be huge, so they'll still win. Nio more than Tesla is primed to mop up the market worldwide, but trade relations between China and the rest of the world could hamper that.

Holding their shares is a nice, ethical way of moving the industry to a somewhat, greener future.

I think any car manufacturer is a reasonably risky bet in the long term. Surely autonomous driving vehicles are going to eradicate the need for 90% of us to own a vehicle. It will change the world completely - and the technology exists today. The big winners will be companies like Uber who can cut out the middle-man (drivers/fuel).

 

[inbetween]

I don't think it will. It's impossible to guess what's going to happen either.

My logic is that the demand for electric cars is going to sky-rocket over the next decade. Companies like Tesla and Nio might not achieve the market share they'd like, but even if they underperform and get a small piece, the pie is going to be huge, so they'll still win. Nio more than Tesla is primed to mop up the market worldwide, but trade relations between China and the rest of the world could hamper that.

Holding their shares is a nice, ethical way of moving the industry to a somewhat, greener future.

I think any car manufacturer is a reasonably risky bet in the long term. Surely autonomous driving vehicles are going to eradicate the need for 90% of us to own a vehicle. It will change the world completely - and the technology exists today. The big winners will be companies like Uber who can cut out the middle-man (drivers/fuel).

I'd say that Tesla are a very safe bet long term because they have the patents and they have the technology that no-one else has really invented yet. It's easy to import batteries but it's another thing to integrate them into a complete car. It's crazy hard to build the batteries yourself and then put them into a complete car which is what Tesla does.

At some point all of the other makers will be forced into buying into the battery market but prices will rocket once demand goes up. Tesla meanwhile make their own batteries so they aren't affected and if anything their costs should come down as they get better at making them. They could even be in a position to sell their own batteries and make a ton from that.

This market will explode over the next 10 years definitely once people start to switch over to electric.

 

[west didsblue]

Cheers mate. I'm going to get some GGP myself - hopefully I'll have the nerve to hold for longer than a week this time!

Haha. I just bought 11k shares. Hopefully they go up. Five years ago they went up 10000%. That'll do, lol.

Down 15% since we all bought them 3 weeks ago!
Could be time to top up a few more.