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Tesla, TSLA & the Investment World: the Perpetual Investors' Roundtable

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FYI
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View attachment 949866
View attachment 949867
P/E at time of this post:
F...........19.55
BLK......20.99
APPL....31.54
MSFT....36.52
DIS.......40.01
TSLA....75.46
BRK-A.101.98
NVDA.223.34
AMD...617.73

Specific to TSLA, link to historical P/E chart below. TSLA topped out at $1,120.11 on Dec 31/20 and was as low as $34.03 on Dec 31/22. IMO <$50 would be another good entry buy point. With each successive year for TSLA, the P/E should expect to drop, expect P/E of $25-$30 by 2030 when growth rate is expected to slow (Tesla will still be growing, but unlikely to be growing by 40% - 50% per year after 2030).

Very informative, but P/E should be unitless, and not $.
 

View attachment 949866
View attachment 949867
P/E at time of this post:
F...........19.55
BLK......20.99
APPL....31.54
MSFT....36.52
DIS.......40.01
TSLA....75.46
BRK-A.101.98
NVDA.223.34
AMD...617.73

Specific to TSLA, link to historical P/E chart below. TSLA topped out at $1,120.11 on Dec 31/20 and was as low as $34.03 on Dec 31/22. IMO <$50 would be another good entry buy point. With each successive year for TSLA, the P/E should expect to drop, expect P/E of $25-$30 by 2030 when growth rate is expected to slow (Tesla will still be growing, but unlikely to be growing by 40% - 50% per year after 2030).
I can’t articulate this properly and I don’t want to write a 10,000 word essay, so it will come out sounding stupid:

All these historical averages et al are all based on a world that no longer exists, where business as usual was digging stuff up and burning it to make all sorts of other stuff happen to make money. Now that we no longer have a biosphere that can soak up our old way of doing business, looking back at how numbers used to be when there was still available environmental overhead for those old businesses to function is meaningless. IMO.
 
Tesla Vegas Loop expansion (all the way to the city limits) got approved by City of Las Vegas about a week ago.

To add some more detail: this was basically equivalent to the approval that Clark County had given earlier this year. The City of Las Vegas itself is actually politically separated from Paradise, Nevada which is where most of the Strip is. This particular approval covers the northern portion of the Loop that will extend into Downtown and up to the Fremont Street experience. The plan for the expanded Vegas Loop has not changed in the past week; there are just separate approvals required for the two different jurisdictions. Las Vegas and Clark County government officials have been in accordance with each other on this project the whole time as far as I can tell.
 
Just how clear does it seem?

Why?

TIA
Mainly for two reasons, both based on the same idea.

Both TSLA and the macro's need a consolidation period really have a next leg higher. Obviously TSLA specifically can move higher or lower based on actual news/data/earnings that is Tesla specific. For the macro's, I do believe we're going to get the goldilocks outcome. Might be some warts on it but in general, the way everything is playing out is a soft landing. But I do not expect Wall St to be just "ok" with volatility plummeting in the market. They make the majority of their money when volatility is higher. I still think there's repositioning that is or needs to happen from major institutions and hedgies to ride a sustained rally higher going forward.

TSLA has always had either big drops or long consolidation periods after big rallies dating back to 2019. Some of those were macro induced but some were just the stock making big moves and then consolidating. We're clearly approaching that now. If the stock were to sell off and bounce off of that 2021 downtrend line and continue moving higher, it would pretty much 100% confirm we are in a new uptrend.

Speaking of that uptrend, if we stay within in...the trading range/window between it and the uptrend set from 2019 to Nov 2021 is massive. As in, the top of the trading range is around 500/share today. We would definitely need a big catalyst to get TSLA to the top of the trading range. Most likely either need margins to rebound to what they were before or Energy margins to materially start contributing to overall margin/profit or FSD SAAS service start to show up in earnings or just FSD getting so good that disengagements drop massively. Might need to be combination of those things to do it.

But when TSLA does have it's Nvidia moment, it's pretty clear the stock has runway to shoot up all the way to 500/share today and even higher in the future based on that 2019-2021 uptrend line. It's something I will definitely be watching if/when we get that catalyst and TSLA starts to rocket higher. I also absolutely think there will be a massive correction/consolidation period when it does hit that uptrend line from 2019-2021 (like 1-2 years long consolidation period)
 
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Something I learned today that might be helpful to folks here:

Share lots with your personal financial advisor and be upfront about everything in your life even outside finances. In particular, when you're in retirement. I just learned a really valuable lesson today to do so. Trust matters, especially with money management.
"Personal Financial Advisor"?!

Wouldn't any one of them have advised us to Diworsify and we'd have long term 4% ROIs instead of being Teslanaires right now?

Edit -Thank you, @betstarship , for bringing up wealth preservation, something I've been neglecting.
 
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Something I learned today that might be helpful to folks here:

Share lots with your personal financial advisor and be upfront about everything in your life even outside finances. In particular, when you're in retirement. I just learned a really valuable lesson today to do so. Trust matters, especially with money management.
Tease
 
Mainly for two reasons, both based on the same idea.

Both TSLA and the macro's need a consolidation period really have a next leg higher. Obviously TSLA specifically can move higher or lower based on actual news/data/earnings that is Tesla specific. For the macro's, I do believe we're going to get the goldilocks outcome. Might be some warts on it but in general, the way everything is playing out is a soft landing. But I do not expect Wall St to be just "ok" with volatility plummeting in the market. They make the majority of their money when volatility is higher. I still think there's repositioning that is or needs to happen from major institutions and hedgies to ride a sustained rally higher going forward.

TSLA has always had either big drops or long consolidation periods after big rallies dating back to 2019. Some of those were macro induced but some were just the stock making big moves and then consolidating. We're clearly approaching that now. If the stock were to sell off and bounce off of that 2021 downtrend line and continue moving higher, it would pretty much 100% confirm we are in a new uptrend.

Speaking of that uptrend, if we stay within in...the trading range/window between it and the uptrend set from 2019 to Nov 2021 is massive. As in, the top of the trading range is around 500/share today. We would definitely need a big catalyst to get TSLA to the top of the trading range. Most likely either need margins to rebound to what they were before or Energy margins to materially start contributing to overall margin/profit or FSD SAAS service start to show up in earnings or just FSD getting so good that disengagements drop massively. Might need to be combination of those things to do it.

But when TSLA does have it's Nvidia moment, it's pretty clear the stock has runway to shoot up all the way to 500/share today and even higher in the future based on that 2019-2021 uptrend line. It's something I will definitely be watching if/when we get that catalyst and TSLA starts to rocket higher. I also absolutely think there will be a massive correction/consolidation period when it does hit that uptrend line from 2019-2021 (like 1-2 years long consolidation period)

But when TSLA does have it's Nvidia moment,

Or, Tesla is having its Nvidia moment right now.
 
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P/E at time of this post:
F...........19.55
BLK......20.99
APPL....31.54
MSFT....36.52
DIS.......40.01
TSLA....75.46
BRK-A.101.98
NVDA.223.34
AMD...617.73

Specific to TSLA, link to historical P/E chart below. TSLA topped out at $1,120.11 on Dec 31/20 and was as low as $34.03 on Dec 31/22. IMO <$50 would be another good entry buy point. With each successive year for TSLA, the P/E should expect to drop, expect P/E of $25-$30 by 2030 when growth rate is expected to slow (Tesla will still be growing, but unlikely to be growing by 40% - 50% per year after 2030).

Markets are forward looking.
Forward P/E (based on 2023 analyst est.) :
Tesla: 78
Amazon: 81
NVDA: 58
AMD: 38


Analysts expect TSLA earnings to be flat in 2023. However, Tesla can easily beat that even with 1.7 million total deliveries, even if margins do not improve from Q1 and the energy business does not grow at all, and even without any IRA manufacturer bounty. With every quarterly beat, 2024 estimates will also go up gradually. After 2023 plays out, the market will be looking at the 2024/2025 forward P/E based on the strength of the Q4 2023 results and sentiments.
 
But when TSLA does have it's Nvidia moment,

Or, Tesla is having its Nvidia moment right now.
Probably right now. My take is that it's a combination of Tesla becoming the future gas station of the world and real tangible FSDb progress that is slowly pushing the share price higher. When you look at actual fundamental metrics, Tesla is actually not in the best position when looking at forward PEs and revenue growth this year vs say last year when gross margins were almost hitting 30%.
 
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