Turns out valuations matter.

What is a good buy are broadly-diversified, low cost index funds/ETF's

They're an electric car company with a track record of overpromising and underdelivering. They're currently at 35X earnings. Ford, GM, and Toyota are at 5-10X earnings. Do you think Tesla is 3-7 times better at making money on cars than Ford, GM, and/or Toyota or do you think they will be in the future?

Vanguard VTSAX, VFIAX, VOO, VTI

I will continue to average in over next 3 days to full position - Yes numerous things brought to this point of down 73% , but " best of breed stock " on sale - Many of the things not company specific - This a capitulation moment , looking 3 to 5 years out , this a great buying opportunity .

TxAg20 said:

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lobwedgephil said:

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TxAg20 said:

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They're an electric car company with a track record of overpromising and underdelivering. They're currently at 35X earnings. Ford, GM, and Toyota are at 5-10X earnings. Do you think Tesla is 3-7 times better at making money on cars than Ford, GM, and/or Toyota or do you think they will be in the future?

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More to it, but sure. Now 22x forward earnings after today. Look at their margins, growth compared to the others. Broken stock, broken chart. But likely buyers come back at some point.

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I don't own Tesla or any automaker stock, nor have I done much research on any of them, but what is the "buy" case for Tesla? Why is Tesla going to be worth more in a year or two when they already trade at 2+ times other car makers?

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Have you seen the money they invest into autonomous driving? No one is close in comparison. If they nail it, it's a literal game changer for humanity.

Premium said:

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TxAg20 said:

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lobwedgephil said:

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TxAg20 said:

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They're an electric car company with a track record of overpromising and underdelivering. They're currently at 35X earnings. Ford, GM, and Toyota are at 5-10X earnings. Do you think Tesla is 3-7 times better at making money on cars than Ford, GM, and/or Toyota or do you think they will be in the future?

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More to it, but sure. Now 22x forward earnings after today. Look at their margins, growth compared to the others. Broken stock, broken chart. But likely buyers come back at some point.

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I don't own Tesla or any automaker stock, nor have I done much research on any of them, but what is the "buy" case for Tesla? Why is Tesla going to be worth more in a year or two when they already trade at 2+ times other car makers?

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Have you seen the money they invest into autonomous driving? No one is close in comparison. If they nail it, it's a literal game changer for humanity.

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That doesn't mean they are making progress. Lots of wasted R&D money out there.

Premium said:

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TxAg20 said:

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lobwedgephil said:

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TxAg20 said:

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They're an electric car company with a track record of overpromising and underdelivering. They're currently at 35X earnings. Ford, GM, and Toyota are at 5-10X earnings. Do you think Tesla is 3-7 times better at making money on cars than Ford, GM, and/or Toyota or do you think they will be in the future?

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More to it, but sure. Now 22x forward earnings after today. Look at their margins, growth compared to the others. Broken stock, broken chart. But likely buyers come back at some point.

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I don't own Tesla or any automaker stock, nor have I done much research on any of them, but what is the "buy" case for Tesla? Why is Tesla going to be worth more in a year or two when they already trade at 2+ times other car makers?

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Have you seen the money they invest into autonomous driving? No one is close in comparison. If they nail it, it's a literal game changer for humanity.

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Ok, but that has zero correlation to the share price.

Tesla stock has been a fad. Huge bubble of get rich quick then ouch. If you bought high, you got played by investors who are smarter than you. Dont be mad, just learn what to look out for in the future and move on.

bmks270 said:

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Premium said:

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TxAg20 said:

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lobwedgephil said:

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TxAg20 said:

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They're an electric car company with a track record of overpromising and underdelivering. They're currently at 35X earnings. Ford, GM, and Toyota are at 5-10X earnings. Do you think Tesla is 3-7 times better at making money on cars than Ford, GM, and/or Toyota or do you think they will be in the future?

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More to it, but sure. Now 22x forward earnings after today. Look at their margins, growth compared to the others. Broken stock, broken chart. But likely buyers come back at some point.

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I don't own Tesla or any automaker stock, nor have I done much research on any of them, but what is the "buy" case for Tesla? Why is Tesla going to be worth more in a year or two when they already trade at 2+ times other car makers?

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Have you seen the money they invest into autonomous driving? No one is close in comparison. If they nail it, it's a literal game changer for humanity.

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That doesn't mean they are making progress. Lots of wasted R&D money out there.

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Tesla's valuation is based upon their anticipated growth rate and their present margins on vehicles. They make 2x as much as Ford on their current slate of vehicle offerings. Ford has a stated intention of transitioning to electric vehicles, and they have said they do not presently make money on electric vehicles. It is going to be a difficult and expensive transition for companies like Ford, GM, and VW. Toyota does not currently have major plans to transition to electric vehicles in the same way the other manufacturers do.

You made the statement that you believe Tesla is a $10-20 stock on another thread. That would represent a market cap of $32-64 billion. They're anticipated to have $40 billion in cash at the end of next year with nearly no debt. You are more disconnected from reality than Tesla's current valuation.