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Ford also has $222 billion in liabilities
by qaq 8y ago
Ford also has $222 billion in liabilities
- dragontamer 8y agoNote that enterprise value takes into account liabilities. Which is why I mentioned it. Also note that of Tesla's $28 Billion in assets, Tesla has $24-billion in liabilities. So the company is overall +$4 Billion in assets, while Ford is +$35 Billion in assets. So Ford is 9x bigger than Tesla by assets, and is also 9x bigger by (Assets - Liabilities). In either case, the metric suggests that Ford should be bigger than Tesla, and yet both Tesla's market cap AND enterprise value is larger. Clearly, no one investing cares about Tesla's current size relative to Ford. At best, people are speculating on Tesla's future growth.
- qaq 8y agoI personally just want transition to electric cars to happen faster so my small investment in TSLA I pretty much consider to be a charitable donation to a worthy cause :).