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Why? VW earned 13 billion EUR after taxes in 2019, Tesla is still negative for 2019 in total. And yet the market cap of Tesla is 187b USD while for VW it's 80b
by simonkafan 6y ago
Why? VW earned 13 billion EUR after taxes in 2019, Tesla is still negative for 2019 in total. And yet the market cap of Tesla is 187b USD while for VW it's 80b USD.
Stock prices have apparently nothing to do with company earnings and performance so how do you know Tesla isn't worth 2000/3000/4000$ per stock?
Investors buy Tesla because they hope a lot of others will too in the future. As long as this hope is there and more people put their money into Tesla, the stock price will continue to rise.
- WA 6y ago... while telling the greater fools that it’s because of Tesla’s superior self-driving capabilities and battery tech.
- lalos 6y agoWhat you are describing is not an investment strategy, at the end it sounds like a pyramid scheme.
- taneq 6y agoIn the investing world they call it a bubble.
- valuearb 6y agoStock prices are about future, not past profitability.