I assume it's because everybody is too afraid to short their stock after what happened to the shorters before.
I don't think I really believe that case, but that's the way the valuation is justified. It's not something that can be captured easily in a discounted cash flow model, because after a couple years you're basically just inventing numbers there. But if you knew for sure that TSLA would succeed in dominating the electric car market, you'd probably buy it at much higher prices than we see today.
The price difference just isn’t that big in relative terms (the starting prices are all relatively high), but the difference in what you get is huge. And I think that’s part of the allure of Tesla - can a 2010-era-supercar be built for $25k? What about less?
I ended up getting a 2nd hand diesel BMW because I got the feeling that the market would move a lot in the next 5 years.
This is just more abstract phrasing.
They make good, albeit expensive, cars that their fan-base seems happy with. They lead in a few things(tech, batteries) and are behind in others (maybe self-driving, definitely quality). Where is the 1000-mile lead?
So Tesla is Nokia in this analogy? I agree, their 1000-mile lead can disappear.
Kind of a self-fulfilling prophecy for any company that ramps up a stock price like that and doesn’t have a CFO asleep at the wheel.
Nobody is saying Tesla won't have a pullback, and it could be a serious pullback, but over the next 5 to 10 years, a lot of investors can see the company being a multi-trillion market cap.