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The reason so many people think Tesla is expensive is because some are valuing the company relative to Ford and GM, but others are looking at Tesla Energy and v
by erikpukinskis 10y ago
The reason so many people think Tesla is expensive is because some are valuing the company relative to Ford and GM, but others are looking at Tesla Energy and valuing the company not just in automotive but in GE's business, and even in Exxon's business.
GM + GE + Exxon = $765 billion
Tesla at $45 billion is still just 6% of that market. There's a lot of uncertainty there, so only a small slice of that $765 billion is getting priced into Tesla's stock, but it's enough to make the people comparing to Ford wonder what the heck is going on.
- cowsandmilk 10y agoWhy do you believe GE is relevant here? GE is a conglomerate that has major businesses like aviation and healthcare that are wholly unreleated to Tesla Energy. For 2016, those made up $9.2B of GE's $17.6B industrial segment profit, so over 50%.
- vkou 10y agoMaybe because Ford and GM shouldn't be in Exxon's business, just like how Google shouldn't be in Exxon's business, and Bank of America should probably not be in Exxon's business? Energy is an undifferentiated low-margin commodity. (Unless you're getting sweetheart resource extraction rates.) Especially when it comes to grid energy - there is zero synergy between being a producer of it, and selling products that consume it.