Over the past month Elon Musk has unloaded $10 billion worth of Tesla shares.
Currently Elon still ranks No. 1 on the global Bloomberg Billionaires Index, with a net worth of $284 billion.
Dogecoin is crashing!
Dogecoin is down 15% in just the last 24 hours.
Elon Musk was on SNL last night in the US and it has lead to a giant crash in Dogecoin immediately as the credits rolled on the show.
I think Xiaomi is one of the most interesting companies in the world. Xiaomi has managed to develop a huge portfolio of products with the aim of selling them with low margins to gain as much market share as possible and then make most of their margins from software based services for these products.
Xiaomi has now announced that they are going to spend $10 billion USD over the next 10 years to manufacturing electric cars, embarking on its biggest-ever overhaul to enter China’s booming EV market.
Xiaomi didn’t specifically state whether they were going to develop the software for these EVs or develop the entire Car (much like Tesla).
I would assume they will go down the Tesla route to market and will develop an amazing EV.
Tesla shares have finished the day at 21.06% down. This is the biggest single day share decline for the company in its history.
Why this matters: Tesla is a company going after a big dream. However, it also seems to be the company that is riding a very high valuation based on very little fundamental numbers being it. Revenues have increase 14% in the past 12 months, but the share price has increased 573%.
My views: I love the company and I love what they are trying to achieve, but it seems like they have become the poster child for a heavily overpriced stock market based on poor fundamentals.
Get share price down, for public companies. Still an issue today. Apple at $1000+ makes each share hard to buy for smaller investors.
Match a typical IPO share price, pre-IPO. Start-ups still like to IPO around $15-20 per share, plus or minus. This gives room for a “pop” and a share price still well under $100. If your private, pre-IPO share price is say $40, then a 2-for-1 forward split will get that down to $20, with the same economics for each shareholder and employee.
Apple and Tesla are both splitting their stock at present. This is to really drive some demand with smaller investors and allows them to have ownership over a great number of full stocks.
Tesla is now officially taking Cybertruck orders in China. You can head to the Tesla website to reserve your Cybertruck.
The Cybertruck has such a unique design I’m sure there will be a lot of upper class Chinese who would love to be driving around in such a car. Really makes a statement.
I found myself stumble across this video and this is one of the best speeches I have heard in a while.
It made me step back and ponder.
I hope it does the same for you. Enjoy!
This has to be the best factory tour of Tesla I have ever seen. Best of all its very information and runs through a lot of different parts of the factory.
Well worth a watch.
Waymo at present has a private valuation that is twice as high as Tesla.
How can this be?
Margins! Tesla is focused on the full production of the car where Waymo is focused purely on the underlying technology with self driving cars. Thus, Waymo will have a Gross Margin that is extremely high in comparison to Tesla.
Eric Schmidt talked about this a lot. How Google and its products always wanted to be focused on providing the technology sub stack instead of the full product as it keeps margins at a high level and thus maximising value.
Tesla is a very interesting beast! It looks and feels like a car company, but really it’s not!
Here is a link to an interesting article about Tesla not being a hypergrowth company.