Recent content by Southpaw

If you look at auto manufacturers and other capex intensive industrial companies you will see that enterprise value/invested capital is generally below one because returns on capital are so poor. Tesla's will also revert to sub-1x (e.g. 90% downside) as their business model is so flawed.

Bubbles are mass psychology phenomena and this one is no different. They will not hit an inflection point where cap-ex scales down. That's the nature of the fast moving auto business.

Sounds to me like it will only be pictures.

"There is not another stock, with revenue growing at 50% per year, that trades at just over 3x this year’s revenue (For comparison, Home Depot trades at 2x revenue: McDonald’s trades at over 4x revenue). It is true that if TSLA is just another auto manufacturer, then the stock is overpriced. But...

You are sure to lose your bet. Quote from Musk: "The first pictures of the Model 3 will be end of March," he said. "I am being a little coy here. We are not gonna show everything about the Model 3 until a lot closer to production time." Not only is it only going to be pictures, but it won't even...