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> There is absolutely no logic to why a company that produced 100,000 cars/year for a total loss of 2 billion is worth 2x a company that produced 6,200,000 cars
by panarky 9y ago
> There is absolutely no logic to why a company that produced 100,000 cars/year for a total loss of 2 billion is worth 2x a company that produced 6,200,000 cars/year with total profits of 7.2 billion.
A company's valuation is determined by expectations for the future.
- vanattab 9y agoThat is exactly my point! There is no reasonable expectation for the future that would justify investing the current valuation.
- greglindahl 9y agoThe market can remain irrational for longer than you can remain solvent.
- wellboy 9y agoExcept that Tesla is the currently the strongest player to take the biggest market in history, autonomous driving with electric cars and Ford isn't.