Poor Lonnie. May he cry himself to sleep on his MyPillow tonight.
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Investors largely expected the decline in sales in Tesla’s fourth quarter and full-year results for 2025, and the company beat Wall Street’s estimates for earnings and revenue, sending shares up in after-market trading Wednesday.
Remember, this is talking about profits, not revenue. They’re still making profit. They did shit profits, but it was more than people expected them to make, so shares went up. Fuck Tesla.
Fucking stocks are like gambling. There’s no rhyme or reason to them.
It’s worse than gambling. When gambling there’s risk and reward, but bad bets are still the responsibility of the player just like bets that outperform. In stocks, if someone makes a bet and/or the company misses their expected returns, the gambler can sue the company. It’s the only gambling where oops, all losses can still result in payoff for the player by fiduciary class-action lawsuit.
I played meme-stocks in 2020-21. I saw that bullshit first-hand, getting half a dozen emails after quarter misses about suing the company over their failure to meet projections. But half of those companies were just getting fucked with because of the influx of idiots like me doing silly shit with their money! I was blown away by that and suddenly started to see how fucked we were to do anything to stop the cancer that unregulated capitalism has become. Infinite growth, impossible in a finite system, is not only expected, but failure to return positive returns could be met with shareholders suing the company for line not go up high enough reasons.
It’s so messed up.
Investors had a general idea of what was going on at Tesla and thought their profits might be down to 20% of what they were last year, so prices went down before Tesla announced their results. Then the results came out. The results were terrible, but not as terrible as the rumours made it sound. So, share prices went back up a bit.
That makes perfect sense. Stocks are like gambling, where a lot of the bets make sense. This is like the odds on a sports game being very long before an injury report is released, and the odds getting slightly better after the injury report is released and it’s not as bad as feared.
Where TSLA stock makes absolutely no sense is the P/E ratio. That’s the price investors are paying for the shares compared to the earnings per share. An old, reliable company that probably won’t grow very much but that has reliably made a steady profit year after year might have a P/E ratio of 5. Tech stocks that might grow a lot in the future might have a P/E ratio of 20 because the expectation is that they have a lot of room to grow, and that in 5 years their revenues and profits might have tripled.
For a typical car company that’s well run, a P/E ratio of about 5-10 is normal. Volkswagen is at about 8, Toyota is at about 10, Ford is at about 12.
Tesla’s P/E ratio is currently 283.38, and its market cap is $1.386 trillion. So, Tesla investors somehow think that Tesla is going to grow to become hundreds of times its current size and/or massively profitable.
So, the day-to-day movements of Tesla’s stock price make sense in the abstract. Investors assuming bad news sell shares, when the news isn’t as bad as feared, investors buy shares. Where they make no sense at all is that the investors are somehow deluding themselves into thinking this tiny car company is about to do something to juice its share price to the moon, like inventing nuclear fusion, or perfecting a time machine.
If the decline was expected, that had already affected the stock price. If you look ONLY at what happens on the day that expectation is finally official, in writing, then yes it’s counterintuitive. But it makes perfect sense that if a huge decline was already built into the price, then that price would rise a little when it’s found out that the decline wasn’t as bad as expected.
Thats how its supposed to work.
That is absolutely not how it actually is working.
So, 2+2= whatever the hype says it is. Got it.
Another way of saying it is that shares had already gone down because this was expected. When it wasn’t quite as bad as expected, they got a little bump back.
P/E ratio is still 280 for Tesla, while it’s like 7 for Toyota. Tesla was valued at like $250 in April and after this report it was almost $450 and not far from all time high. It clearly had not gone down enough.
Everyone should be cutting Tesla, Google, Microsoft, apple, meta etc etc out of their lives as much as possible.
I totally agree. While I do have a Google account, I haven’t used it in many months, and my tablet and phones have never been signed in to begin with. I guess you might consider my mobile Android devices as ‘virgin’ devices, and I don’t mean Virgin Mobile.
I did break my hiatus from Google briefly tonight, just to ask Google Docs to write a document to compare and contrast AI slop versus reality…
https://lemmy.world/post/42327274
Anyways, I’m done with Google again for as long as I can avoid it. But I’m still leaving the account active, if for no other reason than my YouTube videos (not like I’m even making any money off my random stuff)…
Have you tried libre office as an alternative to MS or Google. It’s pretty decent.
Yes, I’m running Linux Mint on my laptop, which comes with LibreOffice. If I needed to write any serious documents of my own, I’d definitely do so using LibreOffice.
I dunno, I just wanted to test the waters of AI on itself in a way to see what it would spit out. At least what it wrote carries a reminder to not outright trust AI and do your own research and fact checking.
🤩
I honestly don’t know how Musks companies work.
Tesla makes cars. Cars don’t sell, so profit drops. Musk uses SpaceX to buy Teslas. Tesla’s profit declines, Musk says it’s an AI company, then buys AI from his other AI company, which he funded from Tesla stock. Musk buys Twitter, twitter goes down in value. Musk buys Twitter from himself using xAI, for higher than its market value, then boasts stock gains?
So now Tesla is going to buy AI from himself, and build robots that were just pantomimed guys in suits… and somehow… profit???
I don’t know what the fuck is going on in this world. But I would absolutely love to see Tesla’s stock drop and all of this made up debt-financing fall apart like the house of cards it is. However, Musk saying “we’re making robots now” seems to have nicely papered over what should be a massive stock decline. After his last one “Tesla isn’t a car company, it’s an AI company” now it’s “Tesla isn’t an AI company, it’s a factory company”.
It’s simple in its principal, really…
- you have multiple companies
- one company (A) have some supply for some product
- on the other company (B), you create demand for that product (i.e. for its operation)
- thus, under your control, you make company A and B enter a trade agreement
- as someone who brokered that deal, you get rewarded (e.g. from brokerage fee, or commision)
- sometimes, by having a massive increase in sales, the stock for company A would increase, thus you can sell a little bit of it, which you can later buy back after the stock price goes back down
- profit
Some facts:
- even though they’re your companies, you are a separate entity from them, and they are each its own entity
- the money comes from the investors as well as profit, remember that they are separate
- no, you cannot just take all the companies’ money, since even though they’re yours, there are corporate structures and other people at stake preventing that
So you basically come up with some excuse for moving stuff around, then you come up with some excuse to siphon off some of that good stuff.
Fuck that shit. Companies being their own legal entity was a mistake.
Can you explain this?
If a real person would be held resonsible… Not even in finance but in breaking the law stuff. Companies only ever get a fine.
He’s Elizabeth Holmes on a global scale. He grifts money from the governments
But wont see jail.
As much as I despise her (as much as the rest of that tech-bros lot), I still suspect she’s only seen jail because she was a young woman.
The Tesla stock is the biggest bubble we have ever seen. Short it on the market with the right timing and you will become filthy rich. It will crash, there’s no way they can deliver to this valuation ever… the only question is exactly when. It’s difficult to predict since it doesn’t follow any logical rules in the short term.
Tesla’s board:
hey, I know, let’s give the ketamine enthusiast who sieg heil’d a dementia-ridden psychopathic racist twice on national television a trillion dollars this year as a comp package.
The fact that it isnt completely under is unacceptable.
Fucking outstanding, but we can do better. Down with swasticars.
I’ve heard that if you spray them with a mix of vinegar and salt, that they’ll likely start rusting and even short circuiting not too long after.
Both of these products can be purchased with SNAP/EBT food stamp benefits for anyone interested.
Or so the rumor goes…
The few of those shit boxes I’ve seen around town have all been wrapped, now, unfortunately.
I hear ya there, but I also hear that they don’t have drain holes on the bottom inside the door and rainwater (and other fluids) will run down the windows inside the door and collect at the bottom and mess up the electronics and cause internal corrosion.
Remember, they’re piss poor designed, go after known weaknesses…
I like your moxxy but they’re covered in cameras. I’ll just continue flipping them off in traffic.
let me introduce you to our lord and savior… water balloons.
Meh, there’s ways to disguise yourself, such as throwaway clothing and wash-off body paint.
Or so I’ve been told…
$TSLA fanbois always claim that only Tesla can sell EVs at a profit / with a huge margin (something like $10k per vehicle). Would be interested to see what kind of margin per vehicle they are making now that the tax credits are removed and it appears that much of the profit came from energy storage.
Somehow stocks will go up.
It’s slid 8% over the last month. But at a 282 p/e, it could lose 90% and still be overvalued.
And yet their stock is skyrocketing, something is not right
House of cards
more.gifYea, I’m in transition from Apple myself. I’m working on swapping out HomePods next. I have homeassistant. I have a GPU in a server in a nice cool basement. Let’s do this.
Good, a well deserved ass-beating to the Nazi-in-chief. Fuck Elon and his company.
As well it should have. You can’t sell many vehicles to people who still remember what nazi’s were. Yet who really cares. In the aftermath of the nazi shit and dropped sales his board cronies paid him a trillion dollar bonus! CEO bonuses work both ways I guess, in this corrupt, fuck you, world.
