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> Tesla is worth more than GM for one reason: the potential to one day be more profitable than GM, namely that enough shareholders are buying into that premise.
by elmar 9y ago
> Tesla is worth more than GM for one reason: the potential to one day be more profitable than GM, namely that enough shareholders are buying into that premise.
Elon musk created a narrative that is building a completely different way of manufacturing and commercializing cars that differs greatly from historical car manufactures.
If you accept that, current economic models that are used to value other car manufactures can't be used to value Tesla.
- Garfgon 9y agoThat's the same thing they said about web companies in the mid 90s.
- robotresearcher 9y agoThat's right. Tesla aims to be the Google of that story.
- rainbowmverse 9y agoThe web companies that survived turned a lot of industries on their heads, and are still doing it. What did advertising look like before Google and Facebook? Of course, that doesn't tell you anything long-long-term. Every ad and product used to have AOL keywords somewhere. Tesla may obliterate the auto industry, but what forms from the ruins may not have a place for them.