Tesla skids: Tesla fell 6% on Tuesday as Chinese rival BYD announced a new deal with DeepSeek for self-driving technology. The Chinese automaker hasn’t been as aggressive with its autonomous systems, but as it begins to launch capabilities with cheaper cars and potentially cheaper AI bills, the lucrative China market is turning into a fierce competition. Just one of many reasons Tesla is having the worst start to the year among its Big Tech cohort — even with its CEO’s massive influence on the executive branch. Still, some see an opportunity.
1 Like
If Tesla FSD doesn’t have moat, why would the robots have a moat? If all of Tesla’s data isn’t a moat, where is case for the multiple?
If I knew hiw to trade options I might would take a flier on Tesla puts.
Cheers
Qazulight
7 Likes
The risk is the time involved. That is why the putz would be sold to the public. The better bet might be to be long GM. At least you own something longer term. Compare the net profits and market caps.
Tesla’s problem is not FSD or something technical.
Musk is burning out the goodwill for Tesla. In the accounting Tesla’s balance sheet has a tons of goodwill.
Below is some information on goodwill’s actual accounting figure, but the figure does not fully count the expected sales at Telsa. Sales figures are dropping like a lead balloon.
The reason for the undercount, goodwill in Tesla’s case was mixed up in perspectives on Musk reflected in the lone high net margin EV seller. Kiss that goodbye.
Tesla’s goodwill is an accounting entry that represents the excess of the purchase price of a company over the fair value of its assets. Goodwill is an intangible asset that includes brand recognition, intellectual property, and customer relationships.
Goodwill trends
- In the last five years, Tesla’s goodwill peaked in December 2023 at $253 million.
- In the last five years, Tesla’s goodwill hit its 5-year low in December 2022 at $194 million.
- In 2020, Tesla’s goodwill increased by 4.5%.
- In 2021, Tesla’s goodwill decreased by 3.4%.
- In 2022, Tesla’s goodwill decreased by 3.0%.
- In 2023, Tesla’s goodwill increased by 30.4%.
Goodwill vs. warranty repairs
Goodwill can also refer to when Tesla performs free repairs on a vehicle that aren’t covered by the warranty. These repairs are done to improve customer satisfaction or safety.
1 Like
1 Like
Typically the acquisition of other companies leads to the largest increase in goodwill. I’m pretty sure Tesla has made a number of acquisitions over the years, but I don’t follow the company so I don’t know the dates and amounts but the major increase in goodwill was in 2019.
DB2
Coming clean, I am after their market cap valuation. The goodwill becomes trivial in that pursuit. I am speaking future prospects which is also the premise of goodwill.
I opened a position in MCO this week. We shall see.
DB2
Curious, do you look at charts?
Yes, I like stocks that are at or near highs. This means the big guys like the stock (and academic research has shown that momentum is a persistent factor in the stock market).
Then today we find that
DB2
1 Like
Where are you investing your money instead?
1 Like
The matress
@DrBob2
I see premiums for equity placed on top of several other premiums.
Jobs have ceilings for pay. Money is tight in order to save.
My main financial focus is video game development.
I want to produce institutional wealth.
Then most ignore things.