Replies to post #15110 on The Rising Influence of Rising Affluence

[semi_infinite]

The graph of monthly sales look like a hockey stick with people piling in just prior to expiration of incentive program. Looks like several months of demand has been satisfied. There are lots of rich folks in HK being chauffeured around in luxury cars for relatively short distances so I would be surprised if sales doesn't come back. Alternatively, Tesla can announce a planned price increase to same levels as other imported luxury gasoline cars and see what happens.

[DewDiligence]

WSJ blasts TSLA in style:

https://www.wsj.com/articles/the-truth-is-catching-up-with-tesla-1507399374

Investors have bid Tesla to a nearly $60 billion equity valuation on expectations the company will dominate the automobile market. That will be a fantasy if Tesla can’t produce enough cars profitably.

Tesla doesn’t have the financial wherewithal for investors to be patient. It burned more than $1 billion of cash in the second quarter and has nearly $20 billion in liabilities on its balance sheet.

Tesla’s soaring stock reignited the interest of better-capitalized car rivals in electric cars. Fresh competition is coming.

At 67 times 2019’s expected earnings, Tesla stock is valued as though the company can execute on its vision flawlessly. The facts suggest the opposite.