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Tesla is probably over-valued, but not every over-valued company fails. Some (amazon, tesla, google) eventually back-fill value into their bubbles. IMHO it re
by tracker1 6y ago
Tesla is probably over-valued, but not every over-valued company fails. Some (amazon, tesla, google) eventually back-fill value into their bubbles.
IMHO it really comes down to how solid the business and its' operations are as a whole. As long as they aren't mis-spending any excess capital in horrible ways, they can definitely do well. Of course, I prefer to see more conservative approaches to growth and expenditures but that's nearly impossible with a car company.
- stu2b50 6y agoIf those companies eventually backfilled value, then they weren't overvalued. Investors just, and correctly so, valued growth over immediate revenue. Of course, growth oriented companies fall flat on their face plenty of times, but for your Amazon's and Google's, with hindsight I don't think you can call them overvalued with the information we have now.