Incredible Iron Man Musk

Tesla announced a new quarterly earnings report, earning an average of $10,000 per vehicle, and its profit margin of 23% ranked first among global automakers. The agency believes that the electric vehicle market will maintain an average annual growth of 26% in the next 10 years, tesla has 28%, and there is a further ability to reduce costs. Combined, Tesla will maintain an annual growth of about 50% for the next 10 years.

Tesla surged 12.7 percent, up as high as about 14 percent intraday. Musk boss's wealth increased by $36 billion in one night...

Tesla's Shanghai factory was established in May 2018 after reading a research report about the cost reduction of China's supply chain by about 25%. At that time, Tesla lost about 5% per car sold, and reducing the cost by 25% meant making 20%.

Losing 5% and earning 20% is obviously a world of difference, so I started paying attention to Tesla from then on. Then, during the pandemic last year, Tesla's stock price fell to around $40. Just at this time buddy mentioned a Model 3, I borrowed it for a few days to drive it felt very cool, charging is also very convenient.

In short, I have been optimistic about the new energy vehicle sector in the night newspaper for two years, and the sad urge is that although I have bought some new energy vehicle-related tickets before and after, I basically just picked up a few wool, and the leg of lamb meat did not bite.

Looking back, so many people around me bought new energy vehicles, and I also placed orders myself, but I actually failed to earn back the money to buy cars from related stocks, which was really a bit silly.

The core issue is how to value industries in the midst of an explosion. This thing is very difficult, and I can't read the financial report. For example, two years ago, the 70 yuan Ningde era was about 50PE, and now the 600 yuan Ningde era is about 170PE.

In total, the stock price rose 8.5 times, of which 3.4 times came from the increase in valuation and 2.5 times from the growth of performance.

The entire new energy vehicle industry chain is like this, for value investors, if not at a low level for the industry trend has a good judgment, for example, less than $100 to buy Tesla, less than 100 yuan to buy Ningde era and insist on holding, the latter valuation level is difficult to bite the teeth on the car, even if it is on the car, it is easy to be thrown down in the shock.

Similar things were said in the reports released by major overseas institutions. The gist is that tesla is only worth $100 billion just by looking at the financial statements, but it is worth $1 trillion in the next 10 years of growth.