
Why Tesla is overhyped – and overvalued - mercutio2
https://www.vox.com/the-big-idea/2017/6/26/15872468/tesla-gm-ford-valuation-justifying-disruption
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mercutio2
I tend to agree with the title of the piece, but many of the author’s points
are embarrassingly off the mark, it seems to me, and I find myself forced to
defend Tesla despite thinking they’re a serious long shot.

First, he measures software advantages (though it’s difficult, he at least
admits) by measuring the number of processors!?! Beyond laughable, well into
“I stopped taking you seriously” territory.

As someone who just bought a Bolt, I am deeply, deeply disappointed with the
software. I’ve never owned a Tesla, but I’m pretty confident it can manage the
task of continuing playing the audio source I last selected, not blasting the
radio at me four times per driving session, despite my desire to never hear
the radio.

Similarly, he acknowledges “maybe” the valuation is justifiable if Tesla can
manage 25% margins, then scoffs at the possibility of doing any such thing.

It seems to me the main near term (pre-autonomous vehicle time frame) bet on
Tesla is that they can be better at robotics for achieving greater and greater
manufacturing automation than their competitors. This strikes me as very
difficult, but it doesn’t help the author’s argument much when he to blithely
breezes past the entire substance of the argument.

All in all, it comes off as a dismissive ill informed hit piece.

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greglindahl
There's an ill-informed article complaining about Tesla's stock price about
once a week. There are good reasons to think that Tesla's valuation is awfully
high, but these articles seem to repeat every wild accusation or reason that
they can find.

Good to hear from a Bolt owner on HN!

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afinlayson
Even Elon Musk has argued at times the market over values TSLA, but that's not
how the market works...

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Aron
Claims to that effect are usually misquotes\misinterpretation. Elon says
they'll achieve Apple like market caps. He isn't simultaneously saying the
opposite.

