General Question

gorillapaws's avatar

Stock Traders: Could Desktop Metal (DM) be the next Tesla (TSLA)?

Asked by gorillapaws (26514points) 1 month ago

I’m curious what others think about the stock. It recently dropped significantly since it’s IPO after a large run. I believe that additive manufacturing will one day be the way things are made for a variety of reasons. It’s unclear if Desktop Metal will be the one to succeed in realizing this transformation in manufacturing. What do you guys think?

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4 Answers

gorillapaws's avatar

Disclosure: I just bought shares today. I’m not a financial adviser and this isn’t financial advice.

zenvelo's avatar

DM is a “behind the scenes” company; their growth potential, while huge, is in supplying manufacturers.

TSLA is a manufacturer that sells to the end user. That’s one reason their stock is so valuable: people buy the car and then think the company must be worth investing in. But TSLA trades at insane multiples: an analysis in Fortune last summer says TSLA would have to capture 30% of the luxury car market. And that was before teh lost six months of stock price increase.

I don’t think DM can live up that same hype.

gorillapaws's avatar

@zenvelo “DM [supplies] manufacturers…TSLA is a manufacturer that sells to the end user. ”

That’s interesting insight. Thanks!

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