Tesla’s 2024 financial results are out—and they’re terrible

[splinter@lemm.ee]

I’m aware. The collateral for the credits are EV sales, hence my shorthand.

[thejml@lemm.ee]

If any other company dropped net profits by 71% they’d be firing their CEOs (well giving them a golden parachute to gtfo) and having some major shake ups.

[aa5b@lemmy.world]

Right, we want EVs, Tesla gets a little boost from legacy manufacturers, so now we have a market, EVs are available. GM gets a break do it has time to design EVs, but are really annoyed at funding that bastard Elon, so have incentive to get their shit together. EVs are built a little sooner m, no one goes out of business (yet), we all win

[aa5b@lemmy.world]

Why is this an issue. They have their incentive to keep building and selling. As long as they’re building and selling, it doesn’t matter to the rest of us what their profit is.

If they’re building make excess profit, that’s just more incentive for legacy manufacturers to be competitive. Capitalism 101

[aa5b@lemmy.world]

That’s not new to Tesla. Avoid bubble stocks. Avoid penny stocks. Buy “stodgy”

[aa5b@lemmy.world]

Pretty much the definition of bubble stocks. If you don’t want emotion driven stocks, don’t ride the hype train. There are many many more stock opportunities, most of whose value is related to actual facts

[cheems@lemmy.world]

It's gambling

[siredcalot@lemmy.today]

There's value investing and there's speculation.
If Tesla can make a robot that can mop the floor, even this seemingly ridiculous valuation will look like a bargain.
Have to remember, Tesla is not a car company. They are an AI and green tech company. Cars are just their largest activity to date.

I am concerned about Elon though. I think he's a visionary, I think he's valuable, but I also think he's spread far too thin and he's losing it as a result. Tesla, SpaceX, Twitter, xAI, Neuralink, and his political efficiency project. All of these are full-time 100hr/week jobs. Even if you assume he literally never sees his gaggle of children, hell even if you assume he never sleeps, there's literally not enough hours in the day. And I think he is thus blind to the fact that his antics are costing him support for the bigger mission.

[gradually_adjusting@lemmy.world]

I'm not into Tesla stock. I'm not just here to whine about a single stock not doing what I want, it's that I think price action in general is too irrational. I've got an axe to grind here and it goes beyond which stocks to pick.

Huge ETFs and algorithmic trading makes too many tickers move all the same way. This harms price discovery. And don't get me started on off-exchange trading; This month, off-exchange volume exceeded that of lit markets.

[hark@lemmy.world]

They're both scams.

[phoenixz@lemmy.ca]

tessla plans to launch it's autonomous ride hailing service

Autonomous driving, like he's promised he already had every year for over a decade now.

Who does anyone believe this scammer? He is a con man, always had been, and I'm just amazed at the enormous amount of idiots believing his shit

[godwins_law@lemmy.ca]

So when will he have time to play Path of Exile and Polyopia and oligarch?

[fauxpseudo@lemmy.world]

"Tesla makes only EV cars and so it doesn't need all the credits a typical gasoline car company would receive. So they sell them."

Which means the system isn't working. Surplus credits should come from improved efficiencies, not excessive allotment.

[vga@sopuli.xyz]

Net profits $7.1B. "Poor financial results".

How does one reconcile these two things?

[tekato@lemmy.world]

It used to be double that, so I can see why people see it as a bad thing. But I also don’t think 7.1B profits qualifies as “poor financial results”, even if it used to be higher.

[cosmonova@lemmy.world]

I wondered that a while ago when Tesla was worth more than many other car makers combined while producing far less vehicles than any single one of them. And I remember people telling me about projections and expectations and that it’s only a matter of time until everyone drives a Tesla basically. Sounded like mass hysteria to me back then because the rest of the world won’t just sit there quietly and let Tesla have a monopoly. People bought shares because they rose rapidly in value, causing even more people to buy shares. It’s a pyramid scheme like so many things these days and people have no problem with it apparently. They love gambling and playing lottery. Value investing is too boring for them.

[sirboozebum@lemmy.world]

The issue is the price to earnings ratio of the Tesla stock.

The level of profit is not bad for a normally price company but Telsa needs to have profits grow exponentially to justify their stock price.

[iii@mander.xyz]

Net profits $2.3B. "Poor financial results". How does one reconcile these two things?

That's 2.3B USD on a 1.29T USD valuation, or 0.17%.

Valuations are typically reflective of expected future profits. Multiples of ×20 are possible for risky (tech or biotech usually) companies. But the ratio is ridiculously off the charts for tesla. If it does not improve, it will have turned out to have been a very wastefull use of capital.

[sirboozebum@lemmy.world]

It's terrible for the stock price which has a price to earnings ratio of almost 200.

If this were a normal company with a profit margin of ~6% and a normal stock price (in line with the market average), it would be fine.

[panarab@lemm.ee]

I wouldn't buy a Tesla even if Elon wasn't a Nazi and a Zionist.