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Until the recent declines they were already worth ~20% more than Ford or GM. The market cap had already baked in massive success, but the financing necessary to
by krrrh 9y ago
Until the recent declines they were already worth ~20% more than Ford or GM. The market cap had already baked in massive success, but the financing necessary to get them there was dependent on an every rising share value. A virtuous cycle until it becomes vicious.
There’s a floor for the stock value: the value of the mark to a Chinese upstart EV company (of which there are already a dozen producing a higher volume than Tesla).
- adventured 9y agoThere are in fact not a dozen Chinese companies producing strictly EV vehicles at a higher volume than Tesla. Fortunately China is no longer allowed to purchase consequential US companies. If Tesla were ever sold, it would go to a US, European, Japanese, or South Korean company.