The shareholders are more or less willing hostages. If Elon leaves they lose 80% of their money. But there's another whole dimension to the problem: nobody will take the job until the stock price collapses. Any replacement for Elon will get the blame if they come in too soon.
I'd bet that Tesla would do much better without him. It wouldn't look like it at first, because there would be a correction of the value of the company from "imaginary" to "realistic", but it would result in a company that is on more solid ground.
>‘Tesla Dilemma’: Elon Musk is destroying Tesla’s profitable car business, but at the current valuation, his lies about self-driving and robots is what is keeping the stock alive.
It's crazy and nuts but it makes sense. The choice is between keeping hype alive and delaying doom or doom now.
Tesla
P/E: 254
PEG: 116
For a car company with $1.46T market cap and modest revenue growth in last 12 quarters (3 years) those numbers are ridiculous.
These numbers are honestly ridiculous. I don't even know how you arrive to these valuations without seriously fudging things. It may as well say TSLA is worth a bajillion dollars. If your thing is "worth" orders of magnitude more than anyone would be willing to pay, guess what? It's really only as valuable as anyone would spend on it. Everything else is fluff.
You can't get SpaceX stock easily. Doesn't Tesla own some SpaceX stock? Could that be part of the valuation? I agree, it makes zero sense. I don't believe in Tesla long term but I do believe in SpaceX long term.
Tesla is at most worth 1/10 of it's current valuation. Given its huge legal liabilities ahead from selling 'self-driving cars' for the past 10 years, it's probably closer to 0.
The crazy valuation is 100% dependent on Musk staying.
Musk net worth is very much dependent on Tesla too - if Tesla crashes, so does his fortune (yes, SpaceX is valued at a crazy number too, but it's not liquid and doesn't bring any real cashflow, at least not yet. And he used Tesla shares as collateral worth billions).
Tesla board member are all Musk buddies and have 0 agency.
Telsa shareholders know perfectly well that the stock tanks if he's gone.
Yeah, in short - everybody knows it doesn't make any sense anymore, including Musk and Tesla, but they have to keep the ball rolling, because they are all in it together. Every involved party looses money if he quits. If he stays they can get some more years of dumping their stock on naive 'investors' that are getting duped by the massive propaganda operation run on Twitter.
PS. Robotaxi will serve 50% of US population before the end of the year according to Tesla & Musk /s
> everybody knows it doesn't make any sense anymore,
The shareholders must not know. Because they can sell whenever they want they don't need to turn the company around. They think Elon is going to put ten billion Optimus out in a few years and the cars are all going to be robotaxis..or they think that more people will think that and send it higher.
The shareholders are more or less willing hostages. If Elon leaves they lose 80% of their money. But there's another whole dimension to the problem: nobody will take the job until the stock price collapses. Any replacement for Elon will get the blame if they come in too soon.
Let him leave. If the brand is built around him, rather than the product, then the company is doomed.
I'd bet that Tesla would do much better without him. It wouldn't look like it at first, because there would be a correction of the value of the company from "imaginary" to "realistic", but it would result in a company that is on more solid ground.
>‘Tesla Dilemma’: Elon Musk is destroying Tesla’s profitable car business, but at the current valuation, his lies about self-driving and robots is what is keeping the stock alive.
It's crazy and nuts but it makes sense. The choice is between keeping hype alive and delaying doom or doom now.
Tesla
For a car company with $1.46T market cap and modest revenue growth in last 12 quarters (3 years) those numbers are ridiculous.These numbers are honestly ridiculous. I don't even know how you arrive to these valuations without seriously fudging things. It may as well say TSLA is worth a bajillion dollars. If your thing is "worth" orders of magnitude more than anyone would be willing to pay, guess what? It's really only as valuable as anyone would spend on it. Everything else is fluff.
You can't get SpaceX stock easily. Doesn't Tesla own some SpaceX stock? Could that be part of the valuation? I agree, it makes zero sense. I don't believe in Tesla long term but I do believe in SpaceX long term.
I think a lot of people think of it as investing in Musk rather than investing in just Tesla.
Fascinating situation.
Tesla is at most worth 1/10 of it's current valuation. Given its huge legal liabilities ahead from selling 'self-driving cars' for the past 10 years, it's probably closer to 0.
The crazy valuation is 100% dependent on Musk staying.
Musk net worth is very much dependent on Tesla too - if Tesla crashes, so does his fortune (yes, SpaceX is valued at a crazy number too, but it's not liquid and doesn't bring any real cashflow, at least not yet. And he used Tesla shares as collateral worth billions).
Tesla board member are all Musk buddies and have 0 agency.
Telsa shareholders know perfectly well that the stock tanks if he's gone.
Yeah, in short - everybody knows it doesn't make any sense anymore, including Musk and Tesla, but they have to keep the ball rolling, because they are all in it together. Every involved party looses money if he quits. If he stays they can get some more years of dumping their stock on naive 'investors' that are getting duped by the massive propaganda operation run on Twitter.
PS. Robotaxi will serve 50% of US population before the end of the year according to Tesla & Musk /s
> everybody knows it doesn't make any sense anymore,
The shareholders must not know. Because they can sell whenever they want they don't need to turn the company around. They think Elon is going to put ten billion Optimus out in a few years and the cars are all going to be robotaxis..or they think that more people will think that and send it higher.
The shareholders don't need to be true believers. They just need to be happy with the share price the way it is.
What makes you think Tesla can't make Optimus?