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In Reply to: RE: LOL...your understanding of the auto industry is...ah...incomplete... posted by Steve O on May 17, 2017 at 08:59:53
"If only Tesla could produce something other than losses for investors....."
I'm not sure I understand what you're trying to say about [Tesla] "losses for investors". Here's a chart showing Tesla stock price (black) vs GM (green) over 5 years.
Tesla vs GM stock over 5 years as of May 17, 2017
Follow Ups:
...the cynicism and sarcasm in that statement. Long ago a publicly traded enterprise was expected to provide a continuing return on investment, typically in the form of a dividend or whatever. Back then a commonly accepted idea was that a stock price represented the market's assessment of an enterprise's future earnings. Apparently that's no longer the case as investors seem to prefer a short term run up in stock price over long term returns. By the old reasoning GM is in trouble and Ford is done. Could be.
IMO, the stock price run-up trumping (ha-ha) long term returns is non-sustainable because it totally discounts the "future" and basic soundness of the enterprise and you have to cash out of the stock at the right time to realize the gain. IOW, "time the market" - an investing mortal sin per old timey investment advisors. How soon we forget the "dot-com" boom and quickly following bust of about 18 years past. I remember IPOs back then where offering price was positively correlated to loss magnitude preceding the IPO. Pets.com anyone?
You said, "If only Tesla could produce something other than losses for investors." I showed that there have been huge gains for investors.Based on your two paragraph explanation in your subsequent post it is obvious that what you originally said did not support what you actually meant.
I'm not a mind reader. ;-)
I see huge gains for investors in Tesla! (Tesla in black, GM in green)
Edits: 05/17/17
...so here it is in one sentence. "I believe current market demand for stock price run-up vs more traditional ROI is unsustainable in the long term and is ultimately bad for most investors and the nation as a whole." There is absolutely no question that Tesla totally outperforms GM, Ford and most other "legacy" mfgrs of anything when measured by the "new" standards of financial performance. And Tesla and a lot of other techs do this while showing no traditional profit or paying dividends.
What you said in your first post could only have one meaning and I responded to it appropriately.
You should have said what you meant in the first place instead of back peddling with a totally different explanation in your subsequent posts.
Yes, you've done a fine job of subsequently explaining what your REALLY mean. Totally different from what you SAID in your first post.
But OK, I got it.
...maybe too subtle.
On a closing note, I read of speculation by investors that even Tesla's future is not so bright. One version is that self driving autos will bring commodification to the market. The analogy these people draw is to mass transportation vehicles: most people don't care who made their bus ride or what it looks like. Exceptions for emerging rock and country stars and well off retirees with busses acting as high end motorhomes.
but I think we're on the same page now.
To add to your last comment......
"Millenials also said that when going out for an evening with friends, they use ridesharing services 70 percent of the time. ReportLinker stated one factor in millennials' ridesharing use is that fewer have their own cars. The survey found that while 91 percent of older generations are car owners, only 78 percent of millennials have their own wheels."
At one time Uber approached Tesla about some sort of partnering arrangement and Tesla turned them down. I don't know where Tesla stands today.
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