If You Had To Bet ALL Your Money Tesla Or Uber, WHICH Company Will End Up Being The BETTER Business And Be More Successful Long Term?

Most of us in America are doing way better due to this booming economy but we're pretty sure all of us didn't sell our stock holdings for 2.5 BILLION dollars, like the founder of Uber did last week.

We say good for him and all those who gamble and start new businesses.

But there is one interesting thing about modern companies like Uber and Tesla.

On PAPER, most smart business people would say both of these businesses are like comparing fantasy football leagues to real football leagues.

So our question to you is based on this assumption is...If YOU had to risk ALL your money on ONE of these two companies, which will end up being real and most prosperous?

Spies, discuss...

MDarringer - 12/19/2019 9:35:23 PM

0 Boost

Hands down Tesla, but someone else will own them.

malba2367 - 12/19/2019 10:43:19 PM

+4 Boost

If you think someone else will own Tesla than it is the wrong place to put your money. No way any other automaker can pay $72 Billion for Tesla. No company in another industry will want anything to do with the high capex low margin automaking industry,

SanJoseDriver - 12/20/2019 5:12:31 AM

+1 Boost

Selling cars is low margin, renting self-driving cars is a different story. Keep in mind Tesla sells grid storage solutions as well.

Truthy - 12/20/2019 9:09:25 AM

+1 Boost

Malba, you are correct given the current valuation. The stock will come down dramatically soon. A few analysts are already saying now is the time to sell. Once the price drops to a point that makes sense someone will buy it. MD has correctly pointed out in the past the most valuable part of Tesla is the brand. Operationally they are not profitable.

MDarringer - 12/20/2019 4:00:02 PM

+2 Boost

Tesla will be sold. That was Elon's "Emperor's New Clothes" plan all along.

MDarringer - 12/20/2019 9:01:22 PM

+1 Boost

Repeat after me "valuation is NOT worth".

Valuation is the theoretical value of the company which in a highly successful company is higher than the worth of its assets.

Thus....

If the worth of the assets is $100 and the valuation was $200, then a buyer would offer $125-150 to buy the company.

If the valuation and the worth of assets is close, then the buyer will offer BELOW the value of the assets.

Section_31_JTK - 12/20/2019 12:35:13 AM

0 Boost

Uber survives long after Tesla is BK.

valhallakey - 12/20/2019 12:35:47 AM

+4 Boost

Tesla but I think I agree with malba2367

SanJoseDriver - 12/20/2019 5:10:50 AM

+1 Boost

For sure Tesla. I don't believe in short selling, but if I did Uber would be my pick. They have no competitive advantage as soon as auto manufacturers start selling autonomous cars... and nearly all of them will. Their financials are also terrible in all but 5 cities where they make solid money.

Truthy - 12/20/2019 10:57:16 AM

+2 Boost

Really, SanJose?!? You are saying Uber financials are terrible? Tesla cannot make a quarterly profit without creative accounting and the accounts receivable appear fraudulent.

SanJoseDriver - 12/21/2019 7:04:26 PM

+1 Boost

Uber loses $1B++ a quarter and have no competitive advantage. There is no way you can honestly look through Uber's financial recods and think they are healthier than Tesla. They lost 6.3 billion in the first half of 2019 with no plan for profitability any year soon. Any way you slice the last quarter, Tesla would have been profitable.

Truthy - 12/22/2019 2:11:24 PM

+1 Boost

They may not be healthier than Tesla, but that is a low bar. $13 billion in debt with imaginary accounts receivable and not once having a profitable year is not a healthy company.
Thus you fanboys comparing Tesla to Apple need to look at Apple's financials.

SanJoseDriver - 12/23/2019 1:02:12 AM

+1 Boost

Apple and Amazon had similar financials for many years. Tesla is taking a bit longer than ideal, but building cars is one of the most capital intensive things you can do. We'll see how this quarter goes... but the fact that some Tesla stores no longer have test drive cars or display cars because they sold everything is a good sign.

countguy - 12/20/2019 8:47:01 AM

+3 Boost

Uber

qwertyfla1 - 12/20/2019 9:30:46 AM

+1 Boost

Neither. Real businesses make money on the product or services rendered and not just the IPO. How either of these companies enjoy the market valuation that they do is why I don't play on Wall or Bay Street. Besides I would much rather invest in myself and my businesses for a better return and complete control of my Benjamins...

supermoto - 12/20/2019 10:40:10 AM

+1 Boost

Neither one. Both companies seem to have been made for the entire purpose of losing tens of billions of dollars.

CANADIANCOMMENTS - 12/20/2019 2:28:09 PM

+1 Boost

Softchoice is betting on the wrong ventures as of late. Uber, Wagg, Wework. All disasters who keep talking about getting to positive revenue one day... Tesla has hard a long road but seems to be picking up speed. Things will really move once the Model Y CUV comes out. I would not put money into "blank As A Service" businesses that don't solve a real problem.

MDarringer - 12/22/2019 3:27:38 PM

+1 Boost

The Model Y is just a high roof Model 3 and is exactly the wrong product. The Model Y needed to be a full-on crossover and not another high-roofed minivan like the Model X.

malba2367 - 12/20/2019 5:28:02 PM

+1 Boost

@Truthy. The Brand is worth something, but the battery pack tech, battery management and motors are far ahead of anyone. The combination of the Tesla brand and EV tech in the hands of an automaker with operational excellence (Toyota comes to mind) would be unstoppable.

MDarringer - 12/20/2019 10:26:08 PM

+1 Boost

Someone is getting stoned with Elon.

TomM - 12/21/2019 4:17:27 PM

+2 Boost

Uber will eventually be replaced by Driverless car companies - maybe not as soon as some think - but eventually Uber will end up a short term situation. IT is also possible private cars will also be replaced the same way - although some will say it will take a lot longer

And of course - eventually we will all be using Star Trek Transporters - and cars will not be needed at all.