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Joined 4 months ago
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Cake day: October 22nd, 2024

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  • Net profits $2.3B. “Poor financial results”. How does one reconcile these two things?

    That’s 2.3B USD on a 1.29T USD valuation, or 0.17%.

    Valuations should be reflective of expected future profits. Multiples of ×20 yearly profit are possible for risky (tech or biotech usually) companies, with large potential profit. But the ratio is ridiculously off the charts for tesla. If it does not improve, it will have turned out to have been a very wastefull use of capital.











  • You’re approaching this from a “who do I like” angle.

    Another approach is the “what’s being traded angle”. Right now EU imports mostly LNG from the US (“The EU had trade deficits in energy (€70 billion) and raw materials (€6 billion) and other goods (€2 billion).” (1). Norway is already exporting at max, EU does not want to exploit natural gas resources domestically, so that leaves only the golf states.

    Export is mostly divided between vehicles, chemicals, machinery (“In 2023, the EU had trade surpluses in machinery & vehicles (€102 billion), chemicals (€58 billion), other manufactured goods (€55 billion)”).

    So markets that can afford luxury german cars, canada, china, australia. But they’d have to compete with chinese cars. Basic chemicals are easier to sell elsewhere.