I think a viable criticism would be more along the lines of does the valuation make sense based on the size of the market they can capture? That's a hard quest

I think a viable criticism would be more along the lines of does the valuation make sense based on the size of the market they can capture? That's a hard question to answer. The Bull case says yes because Tesla isn't a car company it's a battery and energy company that sells cars. Therefore no sense comparing to GM or Ford or any other car company, which tend to be valued far, far more conservatively if we look at share price vs #cars sold, or pretty much any metric. The bear case is that Tesla's share price makes zero sense at all compared to any car company ever. It's well summarized in an old article here: http://aswathdamodaran.blogspot.com/2013/09/valuation-of-week-1-tesla-test.html http://aswathdamodaran.blogspot.com/2013/09/valuation-of-wee... And the share price has radically increased since then. In short the article asks, what would the share price be if Tesla had the scale of Audi and the margins of Porsche. The value is on the order of $70 at that point. The $325 it's at today seems a little ambitious in that light. Personally, I think the bear case is correct, though I admire the company, have friends who work there and I firmly hope they succeed. But wow, that price is insane.