Model 3 savings account option in addition to $1000 deposit..

[ttupper92618]

Some? It has all plus more of the Model 3 factored into its share price. The stock currently trades at 8.1 times sales with a forward P/E of 104. Compare those numbers with other tech stocks:

View attachment 176031

You're suggesting the price will double in less than two years? Even Elon Musk has said "The stock price that we have is more than we have any right to deserve," What CEO says that unless the writing in on the wall, in capital letters and highlighted?

Again, I hope you're right, since I own TSLA, but I just can't see it happening. I see it as being more likely that the share price will be lower in two years than today, than it doubling in price.

I notice you left Amazon out of your chart. Why is that?

Maybe because of this:

AMZN P/E

I'm not arguing that TSLA can double... but seemingly insane valuations based on forward earnings are not as uncommon as one might think. TSLA's estimated P/E for 2018 is 61.06, less than half of AMZN's current P/E... and AMZN is trading at around $700. Explain that.

 

[182RG]

I'm sure many others would rather let Tesla put their money to work than park it at a bank. Since Tesla is already taking deposits I'm sure the lawyers could work out any regulatory issues.

Except GAAP rules are pretty specific. A deposit / reservation isn't an investment. Tesla would not be able to put the money to work.

 

[Canuck]

I notice you left Amazon out of your chart. Why is that?

Only because it wasn't on the image I copied and pasted. I didn't make that image.

TSLA's estimated P/E for 2018 is half of AMZN's current real P/E, and AMZN is trading at around $700. Explain that.

It's easily explained. Amazon makes nothing (well, almost nothing). It acts as an intermediary to get customers to goods and services, including cloud services which has massive potential when it comes to future earnings. In fact, its potential is nearly unlimited. That simply does not apply to TSLA which is very limited in scope. You really can't make any of these explanations for high P/E numbers in relation to TSLA:

Think Amazon's High P/E Ratio Will Hold It Back? Think Again

Again, I'm all for TSLA doubling in price by the time the Model 3 is released. I just don't see it as being possible. But I sure hope this thread is brought back up in less than two years, with people telling me "I told you so!".

 

[ttupper92618]

Only because it wasn't on the image I copied and pasted. I didn't make that image.



It's easily explained. Amazon makes nothing. It only acts a intermediary to get customers to goods and services, including cloud services which also account for a lot of its high P/E.. So its potential is nearly unlimited. That simply does not apply to TSLA which is very limited in scope. You really can't make any of these explanations for high P/E numbers in relation to TSLA:

Think Amazon's High P/E Ratio Will Hold It Back? Think Again

What about all those Fire TV, Kindle, Echo, Echo Dot, and Echo Tap devices? Last time I checked, Amazon actually makes quite a lot of things.... more in fact than Google (or Alphabet, if you prefer)... yet few would accept these sorts of P/E numbers from them.

I get what you are saying and I don't necessarily disagree. But I think you are expecting a rational behavior out of something that is fundamentally not rational. Amazon does not deserve it's high price based on forward P/E, just as Tesla doesn't. But if we are going to act like forward P/E is somehow the factor which drives valuation... then we would have to conclude that Amazon is massively overpriced also.

Of course, the truth is that P/E is a very narrow metric that doesn't capture very much of what drives valuation... which is why TSLA keeps burning shorts.

 

[Canuck]

What about all those Fire TV, Kindle, Echo, Echo Dot, and Echo Tap devices?

Yes, you're right and I edited my post before I read this. But my point still remains and what it makes is minuscule in comparison to the cut it takes off other people's products. I also get your point on the P/E numbers. You can use all the ways to value a stock and some will defy any explanation. But in general the numbers are informative. I also have concern for people saving for a Model 3 by buying TSLA thinking it will double in price.

 

[AZ Desert Driver]

Exactly, there would be no interest to speak of and I'd be helping a company I believe in.

uhhh. buying stock on the open market does not help out the company. it's just one investor selling his stake to you...nothing goes to the company......but those in/out of the company may smile if your price is high or frown if your price is low]

 

[brianman]

TSLA will double in less than 2 years? I just can't see that happen even if all the stars align in Tesla's favour.

If it dips to 140 first, I can see that happen.

 

[Canuck]

If it dips to 140 first, I can see that happen.

So can I, but that doesn't count. It's $208 today. If it dips to $140 then goes to $280 it didn't double from today. It gained $72.

 

[James Anders]

As if that money was just going to sit there and collect interest for Tesla.

 

[Booga]

Except GAAP rules are pretty specific. A deposit / reservation isn't an investment. Tesla would not be able to put the money to work.

Uhh... what?

There is no ALM required by GAAP that would cause this to happen. That's a separate process not related to financial reporting.

GAAP is simply a set of financial reporting rules that must be followed. Reporting is the key word. They can deploy the reservation money however they would like, though they still have to deliver on the car, and so at the end of the next 2 years, they will still have to borrow or raise cash to fund capex and general business investments, though it's possible it's slightly delayed if they can use this cash for a short amount of time.

Does it create risk that people come wanting a refund, to cancel their reservation, and they don't have it in the bank? Yes.

 

[HanSolo]

I think hans sees the glass as half empty, by the way did you hear Elon said he plans to send the falcon heavy to Mars in 2018....I hope Hans doesn't read this...

I consider myself a realistic. I live with under the philosophy that your actions talk, and BS walks. I believe that everything in the game that EM has talked about is within the realm of possibilities, but the stars would literally have to line up perfectly and that seldom happens in a world this complex.

 

[DarthGroudon]

I'm trying to find the form that a TMC member posted whereby you can do exactly this - transfer funds to TM tethered to your RN 'account.'

I saw this here as well as on Reddit. Someone said that they did it for their X, sent a lot of money 6 months before taking delivery. Looked at the form and then decided to call Tesla at the number on the bottom. I was told that this is not something they do or can do.

 

[DQ10]

$5000X400,000 orders=2 Billion dollars-----if given the option to add to there $1000 reservation, for the model 3 a $5,000 average seems conservative and would give tesla working capital..

 

[Roys3]

I'd like to see the option of adding money to my $1000 deposit for the following reasons:
1. I won't have to open another bank account.
2. I'd rather see Tesla use my money than a bank.
3. I'd be more inclined to save more towards the model 3.

Same here - a Tesla Model 3 Savings Account! Do it Elon!