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I don't think your conclusion is inaccurate at all. Yes, enterprise value reflects total business value...but the EV of these companies is pretty similar given

I don't think your conclusion is inaccurate at all. Yes, enterprise value reflects total business value...but the EV of these companies is pretty similar given the discrepancies in actual profit. Part of Telsa makes sense, they are staking out a corner of the market that isn't big now but will be in the future. But the price you are getting for this risk makes zero sense (there was a very non-zero chance of them going bust this year). I actually knew one of the biggest active shareholders here, and the logic is really "hit and hope". Iirc, they have said publicly that they can see this going bust quite easily but they think the upside will pay off...well, I don't get it either. The upside is whatever Ford or GM is now...and they are worth more than that. As an investor, it isn't worth losing brain cells on this...easier ways to make money, way easier.

jsight 7y ago
> The upside is whatever Ford or GM is now...and they are worth more than that. I like Tesla as a car company and agree with this sentiment as an investor. There's a reason that I sold my shares, and also a reason that I never had very many. :) Having said that, I'd like to add Toyota and BMW to your list of comps. BMW in particular demonstrates that there may be at least some potential for upside, IMO.
- hogFeast 7y ago
  BMW are valuable because their labour is priced in a currency that is very weak (same is true of Toyota but to a far lesser extent). I don't think any of these companies are worth owning (again, there are just far easier games to play than megacaps).