Tan Kel Vin, Finance YouTuber at www.youtube.com/ahvin2020
Updated on 16 Aug 2020
Hi, it is a growing company, but it won't be forever exponential. Its estimated to stabilize around 2030.
And yes, the stock price is high. That's because it reflects what Tesla can do in the future: a fleet of robotaxis. Imagine Grab, but without drivers. With full self driving, Tesla will disrupt the entire taxi industry. But that's not all, they will be having their own insurance, battery tech, app store. If you look for their competitors, there are practically none, all of them are way behind in terms of tech and self driving AI. It will be years before any of them catch up.
So yes, Tesla is expensive now. So was Amazon, Google, Apple in 2010. Look at where their stock price are now. The price in 2010 will seem cheap to everyone now.
If you want to find out more about Tesla, I talk about it in depth in this video: https://youtu.be/hHErfQOvvek
16 Aug 2020
Hmm, the thing is that is quite speculative. Although I want it to happen, it may not because we cant predict the future. Also, Apple and Google never really such high PE ratios in the past. Even Amazon couldnt sustain such high PE ratios. The expectations put on Tesla is really quite high. Im sure Tesla will do well, but maybe not as well as the expectations dictate them to.
16 Aug 2020
Hi thanks for sharing your thoughts! The potential of Tesla does seem pretty amazing!
Tesla has a great narrative. Great leadership. Proof that their idea works and is gaining traction (albeit not in SG). They have also been building factories in US and China, proving their expansion and ability to scale and reach a larger population.
However they are greatly overvalued. The PE ratio is out of this world. In addition, they recently managed to achieve profitability for 4 consecutive quarters. Although good news for investors, but also proof that they are still a relatively new company.
If you are willing to bet on them, and hold throughout, I think it can be a small part of your portfolio. More of my thoughts here. https://strongandfrugal.com/my-take-on-tesla-stock-tsla/
16 Aug 2020
Hi thanks for sharing your thoughts! Hmm, I'll go take a look at the PE ratio and do a little more homework on this! Thanks!
Yes. More than a short term spike, its highly volatile and speculative for a long term investment......
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