7 ms·

You are crazy if you think Tesla margins are different than other automakers. They do the exact same thing, and building cars is the worst business there is.

You are crazy if you think Tesla margins are different than other automakers. They do the exact same thing, and building cars is the worst business there is. Regardless...now is the moment when the rubber meets the road. Market cap cannot grow more than 1 trillion, Musk now has to start posting margins in line with such marketcap.

eloff 5y ago
> You are crazy if you think Tesla margins are different than other automakers. Tesla's margin's are about triple Ford's margins over the last decade. That can't last, but it's far from the worst business there is. [1] https://www.macrotrends.net/stocks/charts/F/ford-motor/profit-margins https://www.macrotrends.net/stocks/charts/F/ford-motor/profi... > Regardless...now is the moment when the rubber meets the road. Market cap cannot grow more than 1 trillion, Musk now has to start posting margins in line with such marketcap. Tesla stock is wildly over-valued in my opinion. Even if everything goes fantastically for the company it may not grow into its own stock price. I would like like to short the stock, among others, to hedge my long positions. I still believe the company will be a success though - just not as quickly as the market seems to think.
- ObserverNeutral 5y ago
  Point being. Will all Musk bootlickers be around when Tesla "succeeds" but is a paltry 87 billion dollar automaker company and Musk goes way down in the Forbes list? My guess is no. People want to talk about success and success is measured with marketcap and net worth. 99% of people who know Musk name have really no business knowing his name and care very little about electric vehicles. My guess he also can't handle going back to 2014 levels of social relevancy and will try and run for governor or some other thing like that. Musk is fundamentally an attention whore, he pumped the marketcap before the company was mature, it's not like Tesla marketcap grew spontaneusly.
  - eloff 5y ago
    This is you: http://paulgraham.com/fh.html http://paulgraham.com/fh.html
    - ObserverNeutral 5y ago
      Entrepreneurs aren't rockstars or popstars Nobody loves/hates Sergey Brin, Lawrance Page, Jim Simons, John Overdeck, Clifford Assness, Andrew Beal etc... If you worked in the promotional industry you'd know that rockstars/popstars have to be dragged kicking and screaming , away from drugs and parties, to do interviews and media appearences. Entrepreneurs who want to be famous such as Musk and Trump...nobody is dragging them, they are the ones who want to do it. As per the article, master promoters, because they know their business is not capable of making it on their own merits. I remind you that Microsoft never ever took VC money, just organic growth and re-investing revenues. People who do it the proper way don't need the flashes, quite the contrary they are busy hiding their margins to avoid other people getting in the space.

eloff 5y ago

> You are crazy if you think Tesla margins are different than other automakers. Tesla's margin's are about triple Ford's margins over the last decade. That can't last, but it's far from the worst business there is. [1] https://www.macrotrends.net/stocks/charts/F/ford-motor/profit-margins https://www.macrotrends.net/stocks/charts/F/ford-motor/profi... > Regardless...now is the moment when the rubber meets the road. Market cap cannot grow more than 1 trillion, Musk now has to start posting margins in line with such marketcap. Tesla stock is wildly over-valued in my opinion. Even if everything goes fantastically for the company it may not grow into its own stock price. I would like like to short the stock, among others, to hedge my long positions. I still believe the company will be a success though - just not as quickly as the market seems to think.

ObserverNeutral 5y ago
Point being. Will all Musk bootlickers be around when Tesla "succeeds" but is a paltry 87 billion dollar automaker company and Musk goes way down in the Forbes list? My guess is no. People want to talk about success and success is measured with marketcap and net worth. 99% of people who know Musk name have really no business knowing his name and care very little about electric vehicles. My guess he also can't handle going back to 2014 levels of social relevancy and will try and run for governor or some other thing like that. Musk is fundamentally an attention whore, he pumped the marketcap before the company was mature, it's not like Tesla marketcap grew spontaneusly.
- eloff 5y ago
  This is you: http://paulgraham.com/fh.html http://paulgraham.com/fh.html
  - ObserverNeutral 5y ago
    Entrepreneurs aren't rockstars or popstars Nobody loves/hates Sergey Brin, Lawrance Page, Jim Simons, John Overdeck, Clifford Assness, Andrew Beal etc... If you worked in the promotional industry you'd know that rockstars/popstars have to be dragged kicking and screaming , away from drugs and parties, to do interviews and media appearences. Entrepreneurs who want to be famous such as Musk and Trump...nobody is dragging them, they are the ones who want to do it. As per the article, master promoters, because they know their business is not capable of making it on their own merits. I remind you that Microsoft never ever took VC money, just organic growth and re-investing revenues. People who do it the proper way don't need the flashes, quite the contrary they are busy hiding their margins to avoid other people getting in the space.