$Tesla (TSLA.US)$ This whole concept from Datatrek is farcic...
$Tesla(TSLA.US$ This whole concept from Datatrek is farcical; to build EV companies based on outrageous overly inflated PE ratios. For those that lived the dot.com bust, everyone wanted to be an Internet company until the house of cards collapsed.
Newco EV is barely off the blueprint, many with no sales, which they have yet to deal with maintenence, recalls and safety issues that will dramatically change paper to real world companies. Add to that the small percentage global marketshare (1-2%) means that many households for which a vehicle is their second largest investment want to ensure Newco is still around in 10 years. That is now the average time people are now changing vehicles.
Newco EV is barely off the blueprint, many with no sales, which they have yet to deal with maintenence, recalls and safety issues that will dramatically change paper to real world companies. Add to that the small percentage global marketshare (1-2%) means that many households for which a vehicle is their second largest investment want to ensure Newco is still around in 10 years. That is now the average time people are now changing vehicles.
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JIA WEI LEE :
THEWIZARD : Seems like it pays to run with the bulls and slay them quickly when they're exhausted.
bAUwzKkxLL : Agreed. This kind of thinking really makes me think the market has lost its mind. So the GM and F spinoffs would lose the one massive advantage they have, the distribution and supply chain networks of the parents? Insane.
moonoooooo bAUwzKkxLL: distribution and supply chains? LOL..they have no advantages and their names hold them back...and the market has no 'mind' of course...divorce yourself from thinking there is any type of rational consciousness
OH Mama : It would just be a ploy to access apparently endless appetite for EV equity.
It wouldn't be a bid idea, if they could make it happen quickly.
Whether or not the EV valuations are justified is irrelevant to the seller of the equity.
Applepeople OH Mama: That's the key isn't it? An "apparent endless appetite for EV equity". Apparent and sustained are opposite sides of the business coin, don't you think?
For every seller of an equity there has to be a buyer. Buyers will look at sustainability especially as PE ratios are so out of whack.
Turan No Applepeople: Consider that GM made an electric car, the EV1, from 1996-99, then killed it, recalled them all and crushed them. GM is a demonstrated loser and will lose again this time by being crushed by the Newcos.
I am ur Dog Turan No: How many EVs was Tesla producing in 1996-1999?
I'm not discounting Tesla's impact in bringing forward EV adoption - and am happy it happened - but Lithium Ion batteries are the key driver of current EV success, and Tesla does not have sole rights to Lithium Ions.
Never Get Emotional : I like you but you need to talk English to my friend .