Entering text into the input field will update the search result below

Tesla Worth More Than Facebook

Jan. 06, 2021 4:45 AM ETTesla, Inc. (TSLA)F, F.PR.B, META, GM, TM, TOYOF3 Comments
Ruerd Heeg profile picture
Ruerd Heeg's Blog
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Market cap

After hours trading in Tesla (TSLA) shares ended at $752.90. So now Tesla is worth more than Facebook (FB), including the effect of employee options. But Facebook is earning a lot of money, is still growing and its numbers show high earnings quality. It is a wide moat business. So very much unlike a car manufacturer who is losing market share in Europe and soon also in the US and China.

Allegedly games with short-term out of the money call options have pushed the stock further up.


Tesla just missed its delivery target of 500,000 cars for 2020. Usually Tesla releases such numbers during week days but now the filing was on a Saturday.

Couldn't they deliver 450 cars more? That is a legitimate question also because Tesla registered so many cars on its own name in Norway and Sweden. See here and here. I suppose the auditor did not approve counting these cars as deliveries. However I am not sure because the auditor has also accepted Tesla's ultralow warranty reservations.

Several people claim model 3 sales declined with a large percentage in 2020, maybe even 40%, in the US. These numbers are based on information from reliable or official sources: see here and here.

Signs of financial distress

Here is a tweet about Tesla not paying for electrical equipment it allegedly damaged in 2017. Here is a tweet about Tesla refusing to pay bills in South Korea. Here is a story about a car that might have been sold twice.

Why is the company doing this with so much cash on its balance sheet?

Quality issues

Again a post about a sudden unintended acceleration event in the US. See also here. Allegedly Tesla took the car back and exported it to the Ukraine. Here is a tweet about a spontaneously shattered window. And here is a tweet about a Tesla driver claiming to have been locked out of his car with the front wheel spinning.

Bottom line

Tesla shares are a bubble. The company manufacturers low quality cars and provides poor service. The repeating signs of financial distress are a red flag. The company faces lots of competition in Europe and very soon also in the US and China. After the model Y I do not think the company has any tricks left to increase deliveries.

There is no reason why this company should be worth so much more than Toyota (TM), General Motors (GM) or Ford (F). There is no reason why the company should be worth more than a wide moat business such as Facebook (FB).

This will not end well. My opinion is still: strong sell.

Global Deep Value Stocks is a long only newsletter. I do not publish research on stocks like Tesla in Global Deep Value Stocks. See here and here for examples of what I do at Global Deep Value Stocks. For more information you can take a free trial here or send me a DM.

Analyst's Disclosure: I am/we are short TSLA.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.