Tesla the most valuable car company in the world

[jhalkias]

This is pretty stunning considering their actual vehicle production. Just goes to show you that the Market is much different from reality. https://techcrunch.com/2020/07/01/t...aluable-automaker-in-the-world/?tpcc=ECFB2020

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[ChasingCoral]

This is pretty stunning considering their actual vehicle production. Just goes to show you that the Market is much different from reality. https://techcrunch.com/2020/07/01/t...aluable-automaker-in-the-world/?tpcc=ECFB2020

And having labor problems since they fired employees who stayed home with their managers' permission out of caution over COVID-19:
https://www.washingtonpost.com/technology/2020/07/01/tesla-plant-firings/

 

[Newbie]

Crazy sales during a pandemic!

Guess all the FUD about quality did not stop 90,000 buyers. All during the worst quarter for automakers in a decade. Wow.

https://www.thestreet.com/investing...le-carmaker?puc=yahoo&cm_ven=YAHOO&yptr=yahoo

 

[mark360]

This is pretty stunning considering their actual vehicle production. Just goes to show you that the Market is much different from reality. https://techcrunch.com/2020/07/01/t...aluable-automaker-in-the-world/?tpcc=ECFB2020

Yeah, I wouldn't sleep well at night owning their stock. Their actual book value is only around $100/ share. Lol. Tesla has always been weighted too heavily like a technology company. Car companies typically sit around .5-1x book value.

Stock has made a lot of people money though, there are more people in this world who are not financially literate with balance sheets and income statements than not.

 

[Newbie]

I wouldn't sleep well at night owning their stock

Unless you bought last summer with FUD at it highest around $180 a share Up 500%

 

[Billyk24]

Tesla has not made a yearly profit. It banks upon cash flow and stock value. Quality control issues remain and likely would sink the company if it had real EV competition from multiple competitors.

 

[GregM]

Let's face it, Tesla forced all those Y's out the door before they were ready purely for a good showing for the street...and Elon knew he could get away with quality issues with customers, because customers are starry eyed over the cars so much so that they give him a huge pass on what would get any other consumer products company in trouble...and now he hopes he can turn the quality around to keep sales going- I bet Tesla misses Q3/4 numbers. I agree with @Billyk24 that once real competition comes around, Tesla's rose colored glasses will crack...

 

[Maric]

Tesla has great tech. Their cars perform incredibly. But their quality issues are tainting an otherwise excellent car. It should be rather simple to correct the fit and finish issues they are currently experiencing. It's mind boggling that with their billions (even if on paper) they have not put more emphasis on quality.

If anything, vehicles like the MachE will force focus on that aspect of their product. If they do not, within 5 years they will be in serious trouble (if not sooner). I cancelled the Model Y I had on order since the 1st day they went on sale this week due to fit an finish issues and wrote a nice letter explaining that this was the reason.

 

[DaveRuns]

Tesla has great tech. Their cars perform incredibly. But their quality issues are tainting an otherwise excellent car. It should be rather simple to correct the fit and finish issues they are currently experiencing. It's mind boggling that with their billions (even if on paper) they have not put more emphasis on quality.

If anything, vehicles like the MachE will force focus on that aspect of their product. If they do not, within 5 years they will be in serious trouble (if not sooner). I cancelled the Model Y I had on order since the 1st day they went on sale this week due to fit an finish issues and wrote a nice letter explaining that this was the reason.

I was in the same boat as you. I was seriously considering a Model Y, and was about to make an order, but in the end, the poor fit and finish, coupled with a tired same look as the model 3, pushed me towards the Mach-E.

 

[Mach Daddy]

It will be interesting to see the breakdown in sales between the US and other regions. I read they knocked it out of the park in China with their new Shanghai factory.

Though I do share the sentiment about EV drivers wanting something other than Tesla. I mean the Audi E-tron is the best seller in Norway! Less range, less performance, costs almost double and has a wonky profile.

Remember, Apple and Microsoft were once in the same position as the “legacy”, “left behind”, “ancient” auto-makers. News of their death was greatly exaggerated...they just needed a great new product to return to being the most valuable companies.

 

[JellyBelly]

Let's face it, Tesla forced all those Y's out the door before they were ready purely for a good showing for the street...and Elon knew he could get away with quality issues with customers, because customers are starry eyed over the cars so much so that they give him a huge pass on what would get any other consumer products company in trouble...and now he hopes he can turn the quality around to keep sales going- I bet Tesla misses Q3/4 numbers. I agree with @Billyk24 that once real competition comes around, Tesla's rose colored glasses will crack...

Totally right - few years down the road - move EVs from other companies - Tesla will have to stand up to real competition - time will tell - but if at least a few mainstream car companies can provide good EVs - Tesla's value might be more normalized

 

[Billyk24]

This is from a Tesla owner's forum (https://teslamotorsclub.com/tmc/threads/fit-and-finish-excuse.198416/):

I picked up my new MYP last week. Took it to the SC yesterday to show them a few issues I found before my 7/1000 return period runs out. They mostly consisted of panels gaps and slightly bend fender and a pain blemish.

The SC manager said most were within spec, typical excuse.

He goes on to explain why Tesla’s “within spec” is much broader than other manufacturers. He said legacy manufacturers have had many many years to perfect their production line and Tesla is still working in it. So I can’t expect the same quality. That I should realize that the technology in the car is far superior to the legacy's. That I am
paying for tech not fit and finish.

one of the replies:

They have a stupid rule that you cannot order the same trim for 1yr if you return the car. Why should I am penalized for poor quality because of their rush to deliver. I think to force you to keep an inferior car.

Yep, it sucks. The policy (7 day/1000 miles) is in place to discourage returns. This is why refusing delivery at the point of purchase is important.

As stated before in this thread, if Tesla had serious EV competition from multiple companies, this lack of quality control would sink Tesla.

 

[dbsb3233]

This is pretty stunning considering their actual vehicle production. Just goes to show you that the Market is much different from reality. https://techcrunch.com/2020/07/01/t...aluable-automaker-in-the-world/?tpcc=ECFB2020

I'd go one further than "stunning" and call it "crazy". Or even "ridiculous".

 

[jhalkias]

One thing for sure. I have learned more about the fit and finish of new cars and defects than I ever knew before because of Tesla.

 

[JCHLi]

The scary thing about "value" in this sense is, the value is in the eye of the beholder, or this case the beholders. Kind of looks like irrational exuberance to me.

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