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Quoting the recent [1] on Tesla's performance on Monday: > Today alone, Tesla’s market cap soared by $64 billion in eight hours, including after hours. That’s

Quoting the recent [1] on Tesla's performance on Monday: > Today alone, Tesla’s market cap soared by $64 billion in eight hours, including after hours. That’s $8 billion in “value created” per hour. >In the second quarter, Tesla’s total revenues were $6 billion, down by 5.8% from Q2 last year. Today, its value rose by $8 billion per hour. Over the past four quarters, Tesla’s total revenues were $26 billion. Today, its value rose by $64 billion. And the same source on the stock split: > The stock split did the job, based on the logic that a five-dollar bill broken into five ones makes each of those ones suddenly worth $1.16 — or $1.87 if you start counting since the announcement of the split on August 11. And I think this really puts things into perspective: > Tesla’s shares are now valued at about 20 times annual revenues. [...] In terms of market cap, this makes Tesla the seventh most valuable US company – not counting Alibaba. A car company that sold just 400K cars in its best year is the seventh most valuable US company. Unbelievable.

vardump 6y ago
> A car company that sold just 400K cars in its best year is the seventh most valuable US company. Unbelievable. Similar statements are a staple of what people say about growth companies. Investors seem to think the prospects are way better. Your mileage may vary.
- ckastner 6y ago
  And what exactly would those prospects be to justify this valuation? VW, the third-largest car manufacturer in the world, sold 11 million cars last year (27x Tesla), for ~$280bn revenue (11x Tesla) and ~$19bn profit. VW made 1 out of 8 of the ~77 million cars sold in 2019. Tesla's valuation is currently 6x that of VW's. So how exactly are investors picturing Tesla's growth here? To justify this insane evaluation, they'd need to utterly dominate the market by sales, and with an incredible profit margin. This isn't driven by investors. This is pure speculation.
  - vardump 6y ago
    Ask the people who bought the stock. In the end, this is still their bet and many of them believe Tesla stock is undervalued, and they put their money where their mouth is. They do have more than just the cars. Tesla says they expect their energy to business to eventually surpass the EV one. They have also an insurance company. I don't have any Tesla stock.
  - endori97 6y ago
    Prospects are FSD-sales at $10k+, robo-taxi, self-driving semis and some synergy with boring co tunnels.

vardump 6y ago

> A car company that sold just 400K cars in its best year is the seventh most valuable US company. Unbelievable. Similar statements are a staple of what people say about growth companies. Investors seem to think the prospects are way better. Your mileage may vary.

ckastner 6y ago
And what exactly would those prospects be to justify this valuation? VW, the third-largest car manufacturer in the world, sold 11 million cars last year (27x Tesla), for ~$280bn revenue (11x Tesla) and ~$19bn profit. VW made 1 out of 8 of the ~77 million cars sold in 2019. Tesla's valuation is currently 6x that of VW's. So how exactly are investors picturing Tesla's growth here? To justify this insane evaluation, they'd need to utterly dominate the market by sales, and with an incredible profit margin. This isn't driven by investors. This is pure speculation.
- vardump 6y ago
  Ask the people who bought the stock. In the end, this is still their bet and many of them believe Tesla stock is undervalued, and they put their money where their mouth is. They do have more than just the cars. Tesla says they expect their energy to business to eventually surpass the EV one. They have also an insurance company. I don't have any Tesla stock.
- endori97 6y ago
  Prospects are FSD-sales at $10k+, robo-taxi, self-driving semis and some synergy with boring co tunnels.