3 ms·
Seeing Tesla hit 50B but GM be around 60B makes me wonder if auto is under valued. Transportation is boring but necessary. These companies also have plenty of
by throwayEngineer 7y ago
Seeing Tesla hit 50B but GM be around 60B makes me wonder if auto is under valued.
Transportation is boring but necessary. These companies also have plenty of experience and infrastructure.
Sales are marketing based.
- endorphone 7y agoEnterprise Value (EV) is a far better representation of the value of companies, considering that both shareholders and debt-holders have a stake in the company. Tesla has an EV of $43B. GM has an EV of $135B.
- dd36 7y agoYes, GM and F have a lot of debt.
- deleted 7y ago[deleted]
- chrisseaton 7y ago> if auto is under valued What does 'auto' mean in this context?
- neppo 7y agothe automotive market
- chrisseaton 7y agoDo you mean cars?
- Edmond 7y agoI think it is more likely that Telsa is simply grossly over valued, even with the recent collapse of its market value. I used to be quite bullish on Telsa...until I bought a 2019 Mazda 3 this past weekend. It is basically a Telsa that cost me $25K...Prior to this weekend I drove a Mazda 6 that I bought in 2006. While car shopping I came to realize that most of the things that made Telsa exciting are rapidly being integrated into standard consumer vehicles. With Elon's seeming unsuitability for the role of car company CEO and if it is the case that Telsa doesn't have much of an edge over the competition, it is hard to see Telsa pulling through in the long haul.
- sp527 7y agoThe Mazda 3 is such an amazing value that buying one felt like a no-brainer. Also imo looks considerably sexier than any other car in its class if you get the Touring trim in Machine Gray.
- bainsfather 7y agoIs your Mazda 3 electric?
- Edmond 7y agoNot yet but it wouldn't surprise me if Mazda is cooking up a hybrid version...point still remains, Telsa doesn't have much of moat left vis-a-vis other auto makers.
- rossdavidh 7y agoI don't know all the details, but I am led to believe that GM has a lot of retirement commitments, which I would guess Tesla does not. At one point around 2008, people were wondering if GM's retirement commitments would sink it.
- mobilefriendly 7y agoIt did sink them, they filed for bankruptcy.