A long time ago, in 2022, some people bought shares of two big companies: Tesla and Uber. They wanted to see how much money they could make by owning a part of these companies. Now, we can look back and see what happened with those shares.
Tesla makes electric cars and wants to have robot taxis that drive themselves. Uber is an app where people can call cars to take them somewhere. Some people think Tesla might be a problem for Uber because they could make their own driverless cars. But, these two companies do different things, so it's not easy to compare them.
If someone bought $1,000 worth of shares from each company in 2022, we can see how much money they would have now:
Tesla: They made a lot of money and their shares became very expensive. So, if someone had $1,000 worth of Tesla shares, they would have about $38,000 now!
Uber: They also made money, but not as much as Tesla. Their shares are still a good deal cheaper than Tesla's. So, if someone had $1,000 worth of Uber shares, they would have about $6,800 now.
Read from source...
- The title suggests that Tesla and Uber are in direct competition, but the article does not provide any evidence or examples of how they are competing against each other. It seems like a clickbait headline to attract readers.
- The article mentions Tesla's unsupervised ride-hailing as a potential threat to Uber, but it does not explain what that means or how it would work. It also cites Gary Black as an authority on the topic, without disclosing his affiliation with Future Fund or his past comments about Tesla being overvalued.
- The article compares the returns of investing in Tesla and Uber, but it does not account for the risk factors, the different business models, the market capitalizations, or the growth prospects of each company. It also uses outdated data from 2022, which may not reflect the current situation accurately.
- The article ends with a promotional message for Benzinga, which seems to have a vested interest in generating traffic and revenue from the stock wars between Tesla and Uber. It also invites readers to join a free membership or a newsletter, without disclosing the benefits or the costs of doing so.
- The article does not provide any original insights, analysis, or perspectives on the topic of Tesla versus Uber. It mostly relies on secondary sources, such as press releases, reports, and social media posts. It also fails to address the ethical, social, environmental, and regulatory issues that may affect both companies in the future.
One possible way to approach this task is to first calculate the return on investment (ROI) for each company, then compare them using some metric such as the annualized ROI or the compound annual growth rate (CAGR). Alternatively, one could also use a simple buy-and-hold strategy and see how much the investment would have grown over time. Here is an example of how to do the latter:
Suppose you invested $1,000 each in Tesla and Uber on Jan. 1, 2022, and held them until Dec. 31, 2022. Assuming no transaction costs or dividends, this is how much your investment would have grown for each company:
Tesla: Initial investment = $1,000; Final value = $173.40 x (1 + 0.83%) = $1,000 x (1 + 0.0083) = $1,000.83
Tesla ROI = ((Final value - Initial investment) / Initial investment) x 100% = ($1,000.83 - $1,000) / $1,000 x 100% = 0.83%
Annualized ROI = (ROI x 4) - 100% = (0.83% x 4) - 100% = 3.32%
CAGR = (Final value / Initial investment)^(1/number of years) - 1 = ($1,000.83 / $1,000)^(1/1) - 1 = 0.83% - 1 = -0.17%
Uber: Initial investment = $1,000; Final value = $68.03 x (1 + 0.15%) = $1,000 x (1 + 0.0015) = $1,000.15
Uber ROI = ((Final value - Initial investment) / Initial investment) x 100% = ($1,000.15 - $1,000) / $1,000 x 100% = 0.15%
Annualized ROI = (ROI x 4) - 100% = (0.15% x 4) - 100% = 0.60%
CAGR = (Final value / Initial investment)^(1/number of years) - 1 = ($1,000.