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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 T
by 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 agoAsk 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 agoProspects are FSD-sales at $10k+, robo-taxi, self-driving semis and some synergy with boring co tunnels.