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> Their sales have been growing for years. Looks like they just posted a solid ~5% YoY growth for the last quarter, while TSLA posted ~125%. It's clearly an in

> Their sales have been growing for years. Looks like they just posted a solid ~5% YoY growth for the last quarter, while TSLA posted ~125%. It's clearly an interesting difference. Valuation is the metric that summarizes all of the other metrics. https://www.zacks.com/stock/chart/bamxf/fundamental/revenue-quarterly-yoy-growth https://www.zacks.com/stock/chart/bamxf/fundamental/revenue-... https://www.zacks.com/stock/chart/TSLA/fundamental/revenue-quarterly-yoy-growth https://www.zacks.com/stock/chart/TSLA/fundamental/revenue-q...

Gladdyu 8y ago
https://xkcd.com/1102/ https://xkcd.com/1102/
mijamo 8y ago
Valuation does not AT ALL summarize all the other metrics. Valuation is NOT a representation of the future of even expected future of a company. I could bet on Tesla and help its value rise just because I think tomorrow other people will bet on them and so the share will rise. I could bet on Tesla because I think Softbank has way too much money and will ensure I get an nice ROI soon. I could bet on Tesla because I just see that they've been growing and think it will keep going at the same pace without issue. As long as you have people ready to buy at a higher price for whatever reason, the share will rise. And if people stop believing it will drop. Both regardless of the actual metrics behind. When Tesla gains or lose more than 10% IN A DAY, it's not because suddenly their metrics are 10% better or worse, it's just the mirror of the market's collective psychology.
- benj111 8y ago
  While I don't disagree with you (are you not describing every bubble in history?), eventually the music will stop and any 'investor' should at least be making reasonably sure there is a seat nearby. Tesla's jump on their earnings report was as I understand it, because they made a profit. I suppose you could make a case for that increasing the 'value' much more than 10%. (although I could also take it as a signal for the end of teslas growth phase, and mark it down.) Hopefully all the different opinions average out at 'the one true answer' (tm).
cronix 8y ago
Imagine what their sales would be in the US if they were actually allowed to have dealerships! I'm quite amazed they've been doing as well as they have been with that huge barrier the other car companies don't have. Imagine if the other manufacturers had to deal with this: https://finance.yahoo.com/news/cant-buy-tesla-states-161318245.html https://finance.yahoo.com/news/cant-buy-tesla-states-1613182...
whtswrong 8y ago
>Looks like they just posted a solid ~5% YoY growth for the last quarter, while TSLA posted ~125%. It's clearly an interesting difference. Do you really expect a 100+ year old company that sells 3 million vehicles annually to be growing 125% annually? Where would the cars go?
- jessaustin 8y ago
  If you're trying to convince investors that BMW is undervalued relative to Tesla, this isn't a good argument.

Gladdyu 8y ago

https://xkcd.com/1102/ https://xkcd.com/1102/

mijamo 8y ago

Valuation does not AT ALL summarize all the other metrics. Valuation is NOT a representation of the future of even expected future of a company. I could bet on Tesla and help its value rise just because I think tomorrow other people will bet on them and so the share will rise. I could bet on Tesla because I think Softbank has way too much money and will ensure I get an nice ROI soon. I could bet on Tesla because I just see that they've been growing and think it will keep going at the same pace without issue. As long as you have people ready to buy at a higher price for whatever reason, the share will rise. And if people stop believing it will drop. Both regardless of the actual metrics behind. When Tesla gains or lose more than 10% IN A DAY, it's not because suddenly their metrics are 10% better or worse, it's just the mirror of the market's collective psychology.

benj111 8y ago
While I don't disagree with you (are you not describing every bubble in history?), eventually the music will stop and any 'investor' should at least be making reasonably sure there is a seat nearby. Tesla's jump on their earnings report was as I understand it, because they made a profit. I suppose you could make a case for that increasing the 'value' much more than 10%. (although I could also take it as a signal for the end of teslas growth phase, and mark it down.) Hopefully all the different opinions average out at 'the one true answer' (tm).

cronix 8y ago

Imagine what their sales would be in the US if they were actually allowed to have dealerships! I'm quite amazed they've been doing as well as they have been with that huge barrier the other car companies don't have. Imagine if the other manufacturers had to deal with this: https://finance.yahoo.com/news/cant-buy-tesla-states-161318245.html https://finance.yahoo.com/news/cant-buy-tesla-states-1613182...

whtswrong 8y ago

>Looks like they just posted a solid ~5% YoY growth for the last quarter, while TSLA posted ~125%. It's clearly an interesting difference. Do you really expect a 100+ year old company that sells 3 million vehicles annually to be growing 125% annually? Where would the cars go?

jessaustin 8y ago
If you're trying to convince investors that BMW is undervalued relative to Tesla, this isn't a good argument.