Tesla Closes Below $500B Market Cap for First Time in Two Years | Hacker News Reader

Tesla Closes Below $500B Market Cap for First Time in Two Years

bloomberg.com

29 pointsmfiguiere19 comments

With the way the economy is heading with higher rates. I think it's hard for investors to justify the high valuation of the company. Especially with the slowing car market.

We could see it even drop lower and trade at similar valuations as the big auto companies like Ford, GM, Toyota, and Honda. Tesla usually trades higher because they had the market and tech lead in the EV market but with the slowed progress of FSD and big auto catching up in the EV market. The competition is heating up for Tesla and their advantages are disappearing. Ford is on pace to build 2m EV a year by 2026. Which is 2x the amount Tesla is building yearly. The EV market is going to get really competitive.

Ford has delivered less than 100,000 EVs since they began their quest to go all electric in 2020. It took Tesla 10+ years to ramp production to 1m per year. I’m highly skeptical Ford will hit 1m per year in 2026. Let alone 2m.

> Ford is on pace to build 2m EV a year by 2026. Which is 2x the amount Tesla is building yearly.

AFAIK, Tesla's current capacity is about 2M per year.

I've seen folks say that they can't find a suitable Twitter alternative (Mastodon doesn't quite do it just yet). With TikTok being expected to be banned, I guess Meta really has been given a new lifeline, let's see if they can make use of it. I think they might actually pull it off. https://techcrunch.com/2022/12/13/instagram-now-supports-tex...

I'm developing one at https://sendie.com if you wanted to be nice and register an account.

Personally Zuckerborg and Musk are the same person to me. I cannot tell the difference.

Nice one, but external links are blocked as "popups" by default on Chrome for Android. Anchors with target=_blank should fix it.

Dupe: https://news.ycombinator.com/item?id=33985413

A lot of perceived value was tied up in the FSD software and therefore in the robot product, which uses much of the same code base.

Now that a court has determined that FSD is false advertising many stock holders have good reason to believe that Tesla's value is not has high as they expected.

https://archive.vn/FsIya

The valuation is still very rich. TSLA is just correcting with the broad market.

by what metric? from a P/E ratio perspective it's never traded this low

When I say valuation, I mean P/E (or, in the case of an unprofitable company, P/S). Two years ago, the QQQQ's valuation was much higher. Today it's much lower. TSLA is just following the broad market trend. It's not complicated.

ok.. what is an appropriate P/E that would not make it "rich" when as discussed TSLA's P/E has never traded this low?

Not OP, but they’re clearly comparing it to other car companies. TSLA’s is arguably still 10x what it should be.

Tesla stock is known to be very volatile. I would not read too much into yet, but Musk being distracted with Twitter is not helping.

If it was merely about distraction it wouldn't be an issue, maybe even helpful. It's how he's distracted: selling shares to throw money into a pit and alienating most potential Tesla buyers.

To paraphrase Mr Miyagi: “Elon, Eloff”

and META going up a lot. shows the power of diversification.

> and META going up a lot.

Exactly.

and the whole point in being skeptical when the mainstream media decides to select and parrot their FUD at the 'current thing' 24/7. Before, it was Meta; the whole impending death was greatly exaggerated by the media. Now its Tesla's turn.

They have also done it months ago with the british pound as it slid to its lowest levels through the panic. Now it has gone up 17% since after buying it two months ago. [0]

The power of identifying the FUD and ignoring the panic.

[0] https://news.ycombinator.com/item?id=33274020

Reply on news.ycombinator.com