SciFrog:

Indeed they are deep thoughtful professional explanations. The real questions are: does it really  apply to Tesla and why is the stock trading 3 to 5 times the real value? angrysmiley

Markets can be stronger than metrics for extended periods of time, just look at the VW/Porsche stock prices a few years ago... The question is how much can you loose before being right? So far it is in the billions...

 

All the credit has to go to Elon. Hats off to him for selling his dream to Wall Street. And Wall Street bought it.

His tactic of portraying Tesla not as a car company but a tech company is very successful and hence the higher multiple on stock prices. 

His original vision of not following car manufacturing tradition, trying to blaze a new trail, is quite brave, and the street bought into it. But he forgot to check on history of automation, or he underestimate the importance of human input. Granted, robot technology has improved many times over since those failed automation experiment by other manufacturers, but he just found out even with the improvements, robots are still not up to par, now he is paying for it dearly in making the Model 3. 

But the Tesla story had been played out many many times over in all the industries, not just tech sector, a hot shot start up became the darling of everyone, but instead of sticking to the basics on what got them successful in the first place, they expand too fast, stretching too thin and far, and had to face the consequences. 

 


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