Is $TSLA a buy here?
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Anonymous
Meme stock. |
Anonymous
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Tesla up today on incentives for current owners. https://electrek.co/2025/04/25/tesla-tsla-brings-back-fsd-transfer-offers-2000-loyalty-discount-amid-demand-crisis/ This makes some sense since current owners like the car. Our in-laws just bought a new Lexus EV and it's not nearly as clean in terms of the software and design. They actually have a "power" button  and lots of other buttons. You actually have to lock and unlock the car manually (which Tesla does through the app on your phone when you approach or leave the car which is super convenient). Very confusing set up on the Lexus, but of course the interior is nice. The Lexus still has a knob on the console to turn up volume. Tesla has everything on the steering wheel . . . so much better. It also has better range. So, no other EVs are not "better".
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Anonymous
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Tesla can make cuts in their prices and still be ahead of its competitors. They are the ONLY company that is making a profit on EVs. Everyone else is still taking a loss on every EV they sell. |
Anonymous
Not sure I understand- if current owners like the car, why would they need extra incentive? The article discusses a demand crisis. |
Anonymous
Anonymous
Many people are incentivized by money. They want a new car, but can't afford it today. If the price comes down, they can afford to make the change. |
Anonymous
All car companies offer incentives from time to time. They do work to get people to trade in earlier while the incentives are there. |
Anonymous
| Guess OP was right |
Anonymous
Tesla profit is from carbon trading, not selling cars. |
Anonymous
Your in-laws chose to buy a low trim level. Old Lexuses already gave the app |
Anonymous
| Now Tesla has like $800 million in unsold cybertrucks sitting around and has told workers making the cybertruck and the model Y to stay home for a week. Go ahead and buy but absolutely nothing supports the current valuations. |
Anonymous
Isn't that a woke climate thing that is basically forbidden under the current administration? |
Anonymous
There are layoffs right now at Ford, Stellantis, GM, and Volvo (the Volvo plant in Charleston, SC). The Ford layoffs are likely long term (they are laying off many people who were working on ICE cars). I would steer clear of any auto stocks right now. There are a lot of Mazdas just sitting in customs at the dock in Baltimore right now as well. |
Anonymous
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Anonymous
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OP here just taking a victory lap. The stock is up 34% in the last three weeks.
I’m not taking a victory lap because I think I’m so smart. Actually, it’s the opposite: it was so *obvious* that the only reason the stock dropped 50% was that people were using the stock as a way to voice their displeasure with Elon Musk’s political accomplishments. All the other explanations that people tried to make this thread—that it’s just a meme stock, that the P/E ratio is too high, and so on—were nonsensical because all of those things were true before DOGE began its work. For those explanations to make sense, one would have to believe that the market suddenly realized that $TSLA was an unjustifiable bubble at the exact same time the Democrats began foaming at the mouth over USAID cuts. Of course, this is utter nonsense. To be clear, while I am still continuing to hold $TSLA, it very well still *could* be a bubble. The point I was making was that there was no rational reason, based on the business or the industry or the broader market, that the stock price should’ve dropped 50% in a matter of weeks. Indeed, it was just one of those unusual moments that harkened back to the types of situations that caused Charlie Munger to say, “If others had not been so stupid, we would not be so rich.” So the lesson of this thread is the following: YOU. DON’T. MAKE. INVESTMENT. DECISIONS. BASED. ON. POLITICS. |