Tesla is worth more than GM largely due to speculation that Tesla will be able to ramp up revenues, margins and cash flows unbelievably quickly and expand far b

Tesla is worth more than GM largely due to speculation that Tesla will be able to ramp up revenues, margins and cash flows unbelievably quickly and expand far beyond a car company. Whether or not they have any chance of doing this is unknown, but the market is a huge fan of Elon Musk given his history of delivering innovation. Historically, betting on immense multiples of revenue and earnings on negative cash flow companies has not worked out on average, but Tesla may not be average. Regardless, I wouldnt invest in either company. Autos have historically been a terrible investment due to large capital requirements, low margins, a cyclical operating cycle, ugly pension requirements, and fairly expensive labor... We shall see what the future brings.