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I just don't get it

raph

Rookie Investor
May 29, 2021
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I just got an email from Trading212 with the most traded stock of last week the top 3 were Rivian, Tesla & Lucid I really don’t understand the hype around these EV companies as some of the fundamentals are awful my gut feeling is we will at some point see a dot com bubble burst on these EV stock as historically car makers don’t make a lot of money. Now I know some people will say they are more of a tech company than a car maker but that is where the revenue comes from so, I don’t think that one hold’s water. There are so many good companies out there with solid financial data that seem overlooked now because they are not an EV or tech company.
 

SolidSparrow70

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Aug 12, 2021
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I can't speak so much for Lucid and Rivian but if you look at Tesla - they are yes a very hyped stock but look into them more closely and not only will they see massive growth on several fronts, they control many of their own costs are battery production, software licenses etc. I've been an EV driver for over 5 years and I've watched Tesla do innovation upon innovation and slowly control every aspect of their cost centre. They will be a behemoth and share holder will benefit from this greatly.
 

raph

Rookie Investor
May 29, 2021
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I know what you are saying and i know there revenue is growing but as i recall there net income was positive last year for the first time due in part to credit's and crypto also they are diluting in a big way (dont blame them easy money) i also dont like that tweet's move the stock good or bad. The car's are great no question and the more in house they have the better but longer term can other makes catch up and or can they keep inovating at the pace they are. I suppose at the end of the day it boils down to our investment style either way as long as we are making money neither is wrong
 

SolidSparrow70

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Aug 12, 2021
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I know what you are saying and i know there revenue is growing but as i recall there net income was positive last year for the first time due in part to credit's and crypto also they are diluting in a big way (dont blame them easy money) i also dont like that tweet's move the stock good or bad. The car's are great no question and the more in house they have the better but longer term can other makes catch up and or can they keep inovating at the pace they are. I suppose at the end of the day it boils down to our investment style either way as long as we are making money neither is wrong
I'd clarify by saying that my own investment is minimal because I don't particularly like volatile stocks. I tend to use them a little, I buy some then sell it on a high and pump the money into my bread and butter stocks. But as I've said I'd have faith in them for the long term for sure.
 
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Smart Finance

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Feb 23, 2021
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@raph
I'd have to mostly agree with you. Tesla is the only real exception to those other two. Overall I think the market as a whole is being driven on emotion and hope, with EV and Tech leading the charge. Personally if we look at stand alone fundamentals Tesla is overvalued but coupled with emotion and the fact they are innovating there is room in the stock, just overstretched atm. Looking at Rivian it's way over priced for what it is. Even though the market is over valued as a whole people still are making money hand over fist with it going up.
I think once another correction comes there will be some shocked people buying in at these valuations but then people are making money, valuation keeps going up so more keep buying
 
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bluetester

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Jul 31, 2021
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Tesla and the man himself go hand in hand. When you hear or think of Elon you see what he has done and what Tesla has done, Space X, Neurolink etc. Anything he tends to do, he does well. I was as surprised to find such a successful company and stock price rising despite not making profits.
Personally i don't hold Tesla or any EV stock, that all comes down to EV's future. Great for the next 4-5 years maybe and Rivian will only go up especially with their amazon contract. But i have a feeling Hydrogen cars will eventually take over. This my personal feeling.
Easier access, less drain on specific materials, much easier to convert current fuel stations to hold Hydrogen, quicker to refil and you get water out of the back!
I might well be wrong, after all their value surpass everything else that competes with them.
Look at INEOS, moving into the EV world with their first car/SUV.
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.
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Oh, then there's the apple car ;)
 
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