Hacker News Reader

Hacker News

Comment by toomuchtodo | Hacker News Reader

Parent Full thread

toomuchtodo

“Regulatory credits” are getting paid for making electric cars other automakers won’t make.

Fiat alone must pay Tesla $2B for credits to keep selling internal combustion vehicles in Europe.

View on HN

So Tesla is a good investment because they get paid by other automakers to make cars they don’t want to make right now?

This doesn’t seem like a good long term strategy.

My Tesla stock with a $17/share cost basis says otherwise.

Take the the other side of the bet and short it if you doubt the long term value. The world isn’t going to suddenly stop supporting climate change mitigation through policy. It’s only going to ramp up, leaving legacy Orgs in the dust.

>My Tesla stock with a $17/share cost basis says otherwise.

Tesla's IPO price was $17. So you got in right on the lowest price the stock has ever been and never bought another share since? Amazing.

Mostly correct. I performed swing trading along the way up, but still hold all of the initial IPO investment (yolo’d my Roth IRA). Was sold after my first Roadster test drive.

s/Was sold/Was sold on the company and investment/, after realizing my comment might be ambiguous.

OP never said all his stock had a $17 basis, just that they held stock with a $17 basis. I agree, the capital appreciation of TSLA stock is truly amazing though.

Your good investment from years ago does not make Tesla a good investment at today's price.

Something being potentially overpriced today does not mean it’s not a good investment. It definitely is or was for those who identified the value arb prior to today and executed based on that.

Is Tesla overpriced today? We can only speculate based on potential and execution ability.

> “Regulatory credits” are getting paid for making electric cars other automakers won’t make.

The problem long term is that's basically not the case anymore aside from FCA.

Reply on news.ycombinator.com