I know some will say correction, but this feels like an aggressive sell off. Avg volume is 86M, today's 185M.
Still not understanding why this didn't happen right after the nazi salute.
this post was submitted on 10 Mar 2025
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Because selfish people know that being in charge of a country is free license to affect legislation in your favor.
Everyone assumed Tesla would come out ahead with Musk in charge. Turns out that his butchery (along with Trump’s, of course) is causing the rest of the world to lose confidence in all American goods, with Tesla at the forefront.
Tesla has been falling since inauguration day to be fair. It was trading around ~$425 per share on Jan 20th. It started today around ~$253 and it's now at ~$215 in after hours trading.
We can do better. Let’s tank the Nazi car company even more.
The only good Nazi car company is a bankrupt Natzi car company.
P/E ratio above 100? It still needs to lose 80% just to be at a fair value.
80%? Try more than 95%.
A very good P/E ratio for a well run car company is 7.
- Toyota: 7.4
- Honda: 6.6
- Ford: 6.8
- Mercedes-Benz: 5.84
- Tata Motors: 7.5
Tesla's still over 100. For them to be valued equivalently to a well run car company, they'd have to drop another 94%, down to a price of $14 per share. But, really, with such a toxic guy as CEO, their P/E ratio should probably be even lower than that.
Edit: One other thing I haven't seen mentioned: Tesla probably acts like many tech companies and relies on stock options / stock grants for the compensation of most of the white collar employees, and even more so with the managers and execs. With the share price plummeting, many of those employees might soon discover that their options are worthless. If that happens, they're much more likely to quit. If the expectation is that the stock price might continue to slip, they might have to offer much higher wages, which will drive up the company's costs even higher, which will drive the stock price even lower.
There are probably directors and execs at Tesla who have seen their net worth drop by millions, and engineers / sales people / IT people, etc. who have seen their unvested shares / options drop from hundreds of thousands to nothing. Can you imagine what that's doing to the mood inside Tesla? GM, Toyota, Mercedes-Benz, etc. are probably all putting out feelers, finding out if there are employees who want to jump ship.
If the sky-high P/E ratio was justified by advanced R&D like so-called "full self-driving", what happens when everyone who knows how that works goes to work for a competitor? Note that any employees in California work in a state where non-competes aren't enforceable.
A fair value without a Nazi CEO dragging their brand down. The fair value with Elon is damn near 0.
Yeah, it's a good start. He's destroying our country, firing Veterans, and causing chaos. Oh, and he did the Nazi salute during Trump's inauguration. Twice!
With a P/E of over 100 it's priced like a growth stock. It's not looking like there is going to be much growth so a sell off makes sense.
Except he's a MAGAt.
Perfect, use their stupidity against themselves.