PeterGray wrote:They are currently predominantly traders stock with lots of the profit giving movement that traders seek
I would entirely agree, and Musk does a great job of enriching traders who are fleet of foot!
But that is a very different issue to is "Tesla a good investment"? (not trade), and that is about the quality of the product, ability to deliver and perform as promised, long term reliability. Those are issues which you have promoted here, as being so good for Tesla that other car companies are in real trouble. And yet I, and I'm sure many others, would argue those remain unproven. It takes many years of production experience to learn how to do that well, and many more for a reputation of that sort to be developed with end users. And Tesla remain a long way from that, and their CEO seems intent on distracting them from the real issue.
None of that means Tesla is not a good car company, or that it will not prove itself to be worthy and reliable over time (though a paradigm shifter it is not), but at present, and with the current behaviour of the CEO, the outcome is far too murky for me to regard it as a possible investment. If I were a trader and looking to make a quick buck, helped on by daft tweets, then I might see it otherwise.
I am looking ahead and making my case on what I see Tesla doing and what I see legacy auto doing.
Imho legacy has missed the boat here and is in trouble. My evidence for this is the BMW profit warning and the decisions by all the major manufacturers to abandon both diesel and hybrids and to go for all electric. For example just a few years ago Volvo were promoting their diesel as the engine they would use for a decade or so, now they have gone electric and are phasing out diesel. Many other makers went for hybrids and are no phasing these out and going for electric. In all these case substantial r&d and capex is being written off and this will hurt legacies balance sheets.
Legacy may catch up and Tesla may go under. All autos are very high risk.
We have seen what iPhone did to established phone makers and imho Tesla are set upon doing something similar to legacy auto. I could be completely wrong which is why I continually type that most folk should not invest/trade in Tesla. There is potentially a high reward in Tesla equity but there is also a big risk. If it ever looks like Tesla will create a very successful business the price will imho be a lot (say 5-10 times higher) than currently, but it could be zero if they screw up.