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Tesla Is the Decade's Best-Performing Auto Company

Tesla Is the Decade's Best-Performing Auto Company
Tesla has a valuation of $73 billion which is greater than all but Toyota ($230 billion) and Volkswagen ($98 billion) among 38 automakers across the globe.

Anyone have Tesla in portfolio? Maybe long term holding for another decade?


  • Had it and sold after a 4X run up. Too much drama for me to take them seriously as an investment I wanted to hold on too. Not interested in touching it now but that's just me.
  • Anybody on this site not know this?I doubt it. Iam sure many of us made money from this company since so many funds own it .this
  • Adding Tesla to the S&P 500 Index will create a interesting trading moment for the passive index:
    The possible addition of the carmaker is a big event for managers of index mutual funds and exchange-traded funds. They’re already hashing out strategies for one of the biggest potential trading challenges they’ve faced in years. Tesla would be the largest company in dollar terms ever added to the index, which managers of $11 trillion of investments either track religiously or use as a benchmark. At the current prices of Tesla and other stocks, managers of passive funds will have to sell about $35 billion to $40 billion of shares in the rest of the index’s companies to make a hole big enough to fit purchases of Tesla shares, according to Gerry O’Reilly, a principal and portfolio manager at indexing giant Vanguard Group Inc. “Assuming it’s going to be added, it’ll be an all-hands-on-deck type of trading,” he says.

    There’s no template to follow for Vanguard’s two dozen U.S. traders—plus a team of analysts who work on keeping transaction costs down—when it comes to efficiently handling a stock as big and volatile as Tesla. Nor is it easy to predict the ripple effects in the overall market.

    The shift in the index composition could be announced anytime. The addition theoretically could happen along with the departures of E*Trade Financial Corp. or Tiffany & Co., which are being acquired, or as part of a routine quarterly rebalancing in September.

    Index funds may get as few as a couple days’ notice of the switch. So they need to decide if they should start buying before the addition, the day the stock is to be added, or afterward. Picking which approach isn’t as simple as it sounds. While Tesla’s stock may be bid up by traders trying to take advantage of demand from indexers, other investors may treat it as what O’Reilly calls a “super liquidity event.” That is, longtime Tesla shareholders who are looking to trim positions may try to get out when they know index funds have to buy. The two kinds of investors could cancel each other out. “There are all sorts of crosscurrents,” O’Reilly says. He says he’s confident Vanguard will be able to handle the switch without a major “tracking error”—that is, a dislocation between the performance of the index and the funds that follow it.
  • edited July 31
    Good to see you posting again @JohnN. I was getting worried about you.

    Interesting topic even though everybody knows this. Musk is a genius. Suspect Tesla’s outrageous valuation is more of a bet on the individual than anything else. I dunno. There were lots of skeptics and critics when Amazon was trading at 10-20% its current valuation a decade or so ago - loosing money year after year. But Bezos seems to have been smarter than all those critics. Anybody who’s watched SpaceX’s boosters land on land and at sea upright - sometimes 3 at a time - has to be impressed by the vision and brain behind all this. (Sorry for the scattered thoughts here.)

    Electric cars are still constrained a bit by range. But there will be more advances in both range and charging speed / convenience. Some very smart short-sellers have been betting against Tesla for the past couple years (and Apple as well). Their wallets must feel a lot lighter at this point.

    In keeping with the discombobulated nature of this post, I’ve linked below an article on Elon Musk’s planned Starlink internet service. Being in a remote area where no broadband internet is available, I’m waiting with bated breath for the service to begin - probably late this year in some northern locations. Yes, there is satellite internet now - but it’s pricy, unreliable and otherwise unsatisfactory. Hopefully, the linked article touches on those deficiencies. Starlink promises to bring remote regions like mine into the 21st Century in terms of internet speed and reliability.

  • I tend to agree with you @hank - Tesla is a bet on Musk much like Apple's rebirth was a bet on Steve Jobs.

    Thank you also for the Starlink post. I suffer the same internet connections problems as you and I'm but a mere 35 miles from a major metropolitan area. It definitely complicates distance learning for many of my neighbors.
  • edited July 31
    @Mark - The linked article explains Starlink’s upcoming beta testing and contains a link to their sign up page to be considered as a beta tester. (Sounds like those tests might possibly begin sometime in August.) I signed up last night after trying to stream a movie only to have it drop off after the first 10 minutes due to slow internet connection. The initial private beta tests will be limited to a small number of selected volunteers - largely based on geographical location and having a clear view of the northern sky (which would seem problematic in my case).
  • @hank - compromised living conditions at least with my property. I'm surrounded and covered by trees. I basically have a cabin in the woods.
  • edited July 31
    Mark said:

    @hank - compromised living conditions at least with my property. I'm surrounded and covered by trees ... .

    Never met a tree I didn’t like. Hate to remove them. As a consequence, many grow close to my home. I’m guessing what they really want to avoid (by the “clear view“ requirement) is someone located on the ground floor of a multi-story building. I enjoyed seeing a long string of Starlink sats fly over shortly after launch one night (breathtaking sight) and they were quite high in the (northwestern) sky. Also thinking also that running / burying a 50-100 foot cable from antenna location to receiver might be an option.

    String of newly launched Starlink satellites passing overhead
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