Tesla shares (TSLA) rose from about $ 80 / share at the end of 2019 to almost $ 700 / share.
Boosted by its inclusion in the S&P Index, the company’s market capitalization is now over $ 650 billion – probably the largest large-cap bubble in history.
“The competition noted will include the Audi Q4 e-tron and Q4 e-tron Sportback, BMW iX3 (in Europe and China), Mercedes EQB, Volvo XC40, Volkswagen ID.4 and Nissan Ariya, while less expensive and available now are excellent all-electric Hyundai Kona and Kia Niro, extremely well-reviewed small crossovers with an EPA range of 258 miles for Hyundai and 238 miles for Kia, priced below $ 30,000, including the $ 7,500 tax credit. has an extraordinary “sedan competition” from the beautiful new Polestar 2 from Volvo and the premium version of ID.3 from Volkswagen, and next year from the BMW i4. “
– Mark Spiegel
As mentioned above, faced with an onslaught of competition – from Audi, Volkswagen (VLKAF) and others – and a relatively shallow ditch, Tesla’s market capitalization is now more than 5 times higher than Ford’s (F ), General Motors (GM) and Fiat Chrysler (FCAU), which, as a group, sells 17 million units / year compared to Tesla’s estimated production of 500k cars in 2020.
Tesla’s has few properties in terms of electric car technology – while its global competitors have more than a century of experience in the consistent manufacture and distribution of high-quality cars and subsidize ongoing operating losses from their electric car efforts.
Tesla has been around for 17 years and, adjusted for the sale of broadcast credits, has never been profitable despite the fact that it has no competition and no need for advertising.
Despite limited global competition, Tesla has supported growth by reducing unit prices. What happens when the well-analyzed competition prepares for delivery in 2021? Market share will be pressured and operating margins will decrease.
Meanwhile, leadership unrest has intensified over the past two years.
Bottom line
In an era of cultism, Tesla is the stock (and Bitcoin is the currency)!
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