Marc Faber: Tesla shares are going to $0

[timosman]

http://www.cnbc.com/2016/08/09/marc-faber-tesla-shares-are-going-to-0.html

9 Aug 2016

Marc Faber, editor of the Gloom, Boom & Doom Report, is well-known his perennially bearish take on the overall market. But there are also some specific stocks of which the investor known as "Dr. Doom" takes a particularly dim view — and right now, prime among those is Tesla.

"What they produce can be produced by Mercedes, BMW, Toyota, Nissan. Anybody in the world can make it eventually, at much lower cost and probably much more efficiently," Faber said Monday on CNBC's "Trading Nation."

"The market for Toyota and these large automobile companies is simply not big enough, but the moment it becomes bigger, they'll move into the field and then Tesla will have a lot of competition."

Faber sees this increased competition causing more than a small dent in the company's business and stock performance.

"I think Tesla is a company that is likely to go to zero eventually," Faber said.

Last week, Bloomberg reported that Mercedes-Benz is entering the electric game in a big way, as it sets to unveil two electric SUVs and two electric sedans under a new line. And in a recent ad, BMW, which makes its own electric cars, tweaked Tesla for making drivers wait around for their vehicles in a recent ad.

Recently, Tesla business development executive Diarmuid O'Connell dismissed the company's competitors as having "delivered little more than appliances," in contrast to Tesla's ground-up method of rethinking how cars are powered and driven, according to Automotive News.
For Faber, the strategy of shorting Tesla is merely a part of his bearish approach to the market. On Monday, he recommended that "if you are an investor with a lot of nerves and you sleep well at night anyway, then you could hedge the portfolio somewhat by selling short some stocks that are overvalued and are likely to go down" — providing Tesla as an example.

Tesla's press office did not immediately respond to a request for comment.

 

[dannno]

Hyundai is making an EV, Hybrid, and Hybrid/EV combo and are planning to undercut Toyota

 

[SilentBull]

I was just considering buying some PUT tesla options last week.

 

[RonPaulIsGreat]

Doubt it. Tesla also has the best charging network. Tesla will also have access to the cheapest batteries. Tesla will also shortly be offering a complete solar solution, that I'm 100% sure will be designed to work seamlessly with the Tesla car as in the car will only charge at optimal times, and / or if they do what they should, the battery pack in the tesla will feed energy back to the house during peak usage, and charge during excess solar periods, that could be done simply by having the system access weather data, power grid data, and user preferences.

 

[CaptUSA]

The Tesla company is just a vehicle (pardon the pun) to get battery storage into mass production. The cars are just a means to showcase the technology in order to get other companies to increase the demand.

 

[Brian4Liberty]

http://www.cnbc.com/2016/08/09/marc-faber-tesla-shares-are-going-to-0.html

And people wonder why industries consolidate into oligopolies. Part of it is the attitude that the big guys will always (and should) win, and all of the actions taken that self-fulfill that prophecy.

 

[devil21]

If the PPT wants Tesla at $12,000,000 per share, it will be $12,000,000. The markets are entirely PPT/ESF rigged games at this point. No basis in reality.

 

[AuH20]

Tesla has so much outstanding debt and not enough incoming revenue. It's a bigtime gamble by Musk.

 

[oyarde]

I agree .

 

[kpitcher]

I don't know of any big auto that has billions of dollars pledged in a waiting line to buy the next model of a car like Tesla has.

 

[Dforkus]

I don't know of any big auto that has billions of dollars pledged in a waiting line to buy the next model of a car like Tesla has.

I have a small position in tesla, 25 shares, bought in at the high 100$...

It's a risky play, of that there is no doubt, but I want to keep a toe in the water.. It has the potential to be one of those transformational opportunities that could end up as a 10bagger or more, or at least bought out for a nice profit...

All that is just speculation... I'm not going to stake my future on it...

 

[stuntman stoll]

I'm on the fence here. It looks like the company should be on it's way to bankruptcy (or bailout). They are burning through cash at an impressive rate. But with a Steve Jobs type forward thinking hard charging front man, they could also win big.