Yeah. PE ratio 300, big joke.
Compared to Lucid, which has a negative PE ratio?
They make an inferior product compared to Lucid
Investors in TSLA don't care much about car sales anymore. You can buy TWO Model Ys for the price of one Gravity.
If it goes to realistic value most of the banks will go bankrupt. All this analysts will try to keep the price afloat no mater what.
TSLA'a market cap is $1.4Trillion. That's far too big to manipulate.
Not sure why anyone owns it, growth is limited and S&P has greater gains (50% higher) and less volatility over the last 5 years.
Mr. Market is forward-looking, at least near-term to mid-term.
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I terminated my Model X LR lease early to get a Gravity GT, and am happy I did. But, I'm still a TSLA shareholder and expect at least 20% returns this year, with 35%-50% likely. So, what's going on?
It's actually pretty simple, and experienced investors already understand why these two companies' stocks are priced how they're priced:
1) Lucid is losing money, and has always lost money.
2) Lucid makes great cars, but their current pricing ($71K plus) restricts them to the top ~8% of the market.
3) While Gravity will likely sell well, certainly better than Air, it's far from clear that Lucid can demonstrate positive GM (gross margin) on a per vehicle basis, much less be profitable overall, with Gravity and Air.
4) Lucid has spent a lot on Capex to build two assembly lines (more than $1Billion in Arizona for Gravity), and is already building a third in Saudi Arabia that has yet to ramp for production vehicles. Even if Lucid reaches their design goal of 90,000 Gravitys per year, that's still over $11,000 per vehicle in cost before factoring in materials, supplies, running overhead, salaries, support, warranty work, etc.
5) Lucid will have to spend another $1 Billion or so on their upcoming Earth, the mid-size vehicle. That's money spent today for some not-guaranteed future income and eventually, maybe, profit.
6) Earth is a couple/few years out, so if you're a savvy investor, you will wait and see how delayed things become, if the market shifts, if Gravity is a success or not, etc. Better to invest in AI for the next couple years, then MAYBE pivot.
7) Earth will be going up against the most popular car in the world right now - the Tesla Model Y. It outsells the Camry, the Accord, and even the Rav-4, for which it runs neck and neck.
Can Lucid build a better vehicle at the same pricing profitably? That's a big risk as a stockholder to take.
8) Looking beyond the US and beyond the Middle East, can Lucid compete with the Chinese (can anyone?) on vehicles? Look at Xiaomi, Nio, Zeekr; they're producing reasonably priced vehicles that are top notch. German luxury brands are suffering. The low-end of Chinese vehicles being exported to Europe might devastate some Europen car companies unless they put some kind of protective tariffs in place.
Earth is going to have be really great and priced right to sell, and then there's still the question as to whether Lucid can do that at a profit.
As for TSLA, it's not "market manipulation" or any such nonsense. The recent rise to its ATH (All Time High) was driven by progress on its Robotaxi efforts, now combined with FSD being recognized as the best L2++ system now available by far. And even some robotics optimism for Optimus. Those are large, potentially lucrative markets with no established competition except Waymo, which obviously isn't scaling well. Heck, Hyundai even bought Boston Dynamics to get in on the robotics market. It's more than likely that Tesla will be running robotaxis without drivers or safety monitors by the end of this year in at least one locality, and their technology is such that it will scale faster than Waymo (no HD mapping, using cost-effective, purpose-built taxis that don't need aftermarket retrofitting, etc.). After literally creating the EV market when everyone doubted EVs could be successful, investors are looking to Musk (for all his faults, which are many) to succeed in autonomy and robotics.
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