Last year around the FB IPO I thought about what stock to buy. Either FB or Tesla.
It boiled down to a company that is revolutionizing transportation with real world products VS. a company that enables people to click on virtual pixel cows without a real business model.
Really bad advice. Yes, you get to gloat because you got lucky...
However, I hope people stop and think before listening to you. Yes, it's really cool that Elon hit it out of the park, but at the end of the day, that's not the way to make investment decisions. The market is a fickle place. TLSA could be worth have as much in a year and FB could be worth double. Of course, TSLA will still be worth more since its IPO price.
Tesla's doing cooler shit, in my opinion, than FB is. Stuff that matters more, again in my opinion, for at least the U.S. and reducing our total dependency on oil. Look here (http://www.teslamotors.com/supercharger) for their plan to cover the US in two years, albeit through backwards routes, with supercharging stations. Tesla actually makes a good-looking electric car. This is all about marketing, and Americans love performance and slick cars - they don't care about the happy and petite (though not really, just going by marketing here) Prius or Nissan Leaf. Tesla is gonna' be huge and their stock is going to go up. It could halve, but I doubt it right now. I'm not an investor by any means - I don't have the money to invest, but I've watching them for a while. We should stop relying on oil, and Tesla is one of the few companies selling part of that dream with a beautiful product.
Whether they are doing cooler "shit" or not, is irrelevant to investing in them. It's way too geeky to get into one of these Android vs iOS, Steve vs Elon, Microsoft vs Apple, Superman vs Mighty Mouse debates.
Let's just say that when a company like Facebook or Google, which builds large data centers, and has a billion customers, make small changes, or increases in efficiency, they have an opportunity to make a big impact too.
Where you want to rank them in your mind on an absolute scale, well, that's really up to you. It's probably meaningless, but I guess people like to believe in people/companies. It's how we're wired.
Basically, from a fundamental investment analysis standpoint Tesla is way more logical than Facebook.
Tesla makes a tangible good for sale with a straight forward business model. You can evaluate Tesla using the same criteria that Ford was evaluated with 90 years ago, same way that Westinghouse, or GE were evaluated. They are a new technology with a potential to revolutionize a major industry, with a high risk of failure and high return on investment if they succeed. For Facebook or Twitter a savvy investor has to first theorize how to even evaluate them.
The investment potential in a facebook or a twitter is there definitely... but its much easier for an investor to evaluate a tesla compared to a facebook.
Last year around the FB IPO I thought about what stock to buy. Either FB or Tesla.
It boiled down to a company that is revolutionizing transportation with real world products VS. a company that enables people to click on virtual pixel cows without a real business model.
The choice was easy.