Bet TSLA
Active Member
Another nonsense piece in Forbes, written by a guy who says he just went short TSLA for the first time on Friday.
Do S&P 500 Investors Really Want To Buy Tesla Now?
He points to Yahoo being added to the S&P 500 in 1999 as a cautionary tale. And cites Scott McNealy's whining about how Sun's stock was overvalued and crashed (on a personal note, I left Sun in 1999 when my stock options were still worth something, then proceeded to lose it all and more in the .com crash). Then he asks us "On May 1, Elon Musk himself tweeted he thought Tesla was overvalued. Back then, Tesla was trading at 6x sales. Today, the multiple exceeds 18 times sales. Has Tesla become three times better of a company in just six months?"
He seems to be shocked that the S&P committee has rules for inclusion and doesn't consider a bunch of other stuff:
For some reason, S&P overlooks the fact that Tesla trades at a trailing P/E ratio of 928, and a forward P/E of 252, both of which are well above the long-term average P/E for the S&P 500 of around 17.
For some reason, it doesn’t matter whether Tesla earns one dollar of net profit or a billion dollars of net profit. Profitability is viewed through a simplistic prism akin to a pass fail exam.
S&P 500 investors: Does that seem rational?
And then he claims to be a Tesla fan as described in this piece he wrote in 2018 in which he showed himself to be an investing idiot who actively prevents his clients from making good money:
https://www.realclearmarkets.com/ar...s_are_scary_thank_goodness_for_elon_musk.html
I really can't believe that anybody who is obviously so conservative would go short TSLA now, so I imagine it's just a few shares. But what I can believe is that people who were totally wrong in 2018 are still totally wrong.
Do S&P 500 Investors Really Want To Buy Tesla Now?
He points to Yahoo being added to the S&P 500 in 1999 as a cautionary tale. And cites Scott McNealy's whining about how Sun's stock was overvalued and crashed (on a personal note, I left Sun in 1999 when my stock options were still worth something, then proceeded to lose it all and more in the .com crash). Then he asks us "On May 1, Elon Musk himself tweeted he thought Tesla was overvalued. Back then, Tesla was trading at 6x sales. Today, the multiple exceeds 18 times sales. Has Tesla become three times better of a company in just six months?"
He seems to be shocked that the S&P committee has rules for inclusion and doesn't consider a bunch of other stuff:
For some reason, S&P overlooks the fact that Tesla trades at a trailing P/E ratio of 928, and a forward P/E of 252, both of which are well above the long-term average P/E for the S&P 500 of around 17.
For some reason, it doesn’t matter whether Tesla earns one dollar of net profit or a billion dollars of net profit. Profitability is viewed through a simplistic prism akin to a pass fail exam.
S&P 500 investors: Does that seem rational?
And then he claims to be a Tesla fan as described in this piece he wrote in 2018 in which he showed himself to be an investing idiot who actively prevents his clients from making good money:
https://www.realclearmarkets.com/ar...s_are_scary_thank_goodness_for_elon_musk.html
I really can't believe that anybody who is obviously so conservative would go short TSLA now, so I imagine it's just a few shares. But what I can believe is that people who were totally wrong in 2018 are still totally wrong.