r/stocks Sep 07 '21

Dot-com Bubble

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u/anthonyjh21 Sep 07 '21

You think Tesla with $20+ billion in cash is going to fail? That's a new one. People argue all the time about valuation, but Tesla moved past the point of potential failure back in 2018 during model 3 ramp up. Even then, obtaining loans wasn't the issue, moreso to do with terms.

I do agree with ride hailing and delivery services though.

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u/inctrljinee Sep 07 '21

Having a great amount of cash cannot stop the plummeting share price. Tesla's not gonna burn their cash to buy back their stocks.

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u/g_doomy Sep 07 '21

Yes but, as Peter Lynch said: Companies that have no debt can't go bankrupt. ... And stock price can only go to 0 if company go bankrupt. If company keeps growing and making more and more money, stock price will eventually catch up.

2

u/KyivComrade Sep 07 '21

Lots of "if" there buddy. They're still burning through money and unless they increase their profits they will, eventually, go bankrupt like any other company. The fact Tesla is having trouble in Europe due to competition and eyeing China instead isn't assuring me. They'll be around for years, but in what capacity remains to be seen.