Holding on to my put options, but I'm really harsh in the red.
I do believe that Tesla has a bright future in the industry, but their current market cap is just straight up ridiculous. Unlike any other tech giant, they will never be able to reap the kind of margins with their products (cars!) like a "normal" tech company can, and at some point the rest of the car industry will catch up. Also, Elon Musk is a walking time bomb in my opinion, eventually he'll go too far with one of his endeavors and possibly drag everything else down with him.
> Unlike any other tech giant, they will never be able to reap the kind of margins with their products (cars!) like a "normal" tech company can
Why? Only a minority of customers purchase FSD but the take rate keeps increasing. This can easily double the margins. Also, the insurance business is nascent and hugely profitable. And the new Model S and X production lines were almost suspended for 3 quarters due to shortage (most profitable products). Also, each new factories are far more efficient than the old ones, and they'll open two giant one in the coming months.
I do believe that Tesla has a bright future in the industry, but their current market cap is just straight up ridiculous. Unlike any other tech giant, they will never be able to reap the kind of margins with their products (cars!) like a "normal" tech company can, and at some point the rest of the car industry will catch up. Also, Elon Musk is a walking time bomb in my opinion, eventually he'll go too far with one of his endeavors and possibly drag everything else down with him.