Comment by nolok
1 day ago
Merging the failling companies into the other ones is the usual Elon thing, Solar City didn't get acqui-merged into Tesla for its great result.
It's not a "scam" in the traditionnal sense, it's riding the bubble while it's there, stock value is "supposed" to be about the company performance and potential but technically it doesn't have to be, it's about what some people are willing to pay for it (the stock, not the product the company sells) and that's all. That's also why tesla has such a valuation.
You can see it in the comments even here and other thread about this IPO, some people read the numbers, and some have just religious sounding comments about it being the biggest revolution ever or making the history book etc ...
And that's also why they need to keep elon as CEO because in the scenario where they remove it and get the best car company CEO and become a great regular car company that works and ships lots of great car ... Their valuation would be reduced a factor of ten
It’s a scam and the party will be over when Tesla finally bites the dust, and it will. The worldwide trajectory is not in their favor.
What makes you say that? Chinese EVs?
Not parent, but Tesla is currently worth more in the stock market than the ten biggest car seller combined
That's with falling sales, with no new product in sight and their latest release a big dud (despite SpaceX ordering massive amount of it to prop it up), and with a pricing and thus margin that is going to be massively lowered or beaten by Chinese ev. Protectionism by the US can only go so far, the US alone doesn't have a trillion dollar worthy car market.
They're also losing the race in self driving, and the biggest innovation in EV (semi instant charging) is coming from China not from them.
They had a lead and a massively advantageous legal situation and they squandered it, now you add the association of Elon to the brand making it toxic in many places and it's not looking rosy, the brand can be fine but it's valuation at one point or another will have a wake up day.