2 ms·
The simple reason Tesla are valued so high is because they have plans for and are executing on MASSIVE growth. They're building factories around the world as fa
by grecy 6y ago
The simple reason Tesla are valued so high is because they have plans for and are executing on MASSIVE growth. They're building factories around the world as fast as they possibly can to massively scale up how many cars they can produce each year.
Toyota produce the same number of cars they did 10 years ago, and their stock price is the same as it was 10 years ago. Yes, Toyota make an insane number of vehicles and make profit doing so, but chances are they'll be doing basically the same thing 10 years from now.
The article says Tesla's Revenue grew 28x in 10 years from 100M to 28B. The market is hoping/predicting/betting that will be the same in the next ten to roughly equal VW and Toyota at 280B by 2030. The ten years after that might see similar growth too..
- dawnerd 6y agoThat's how I've been looking at it too. Yes, Tesla is overvalued right now but we don't know yet what their actual potential is since they can't keep up with demand. It's likely the valuation is completely unrealistic in the long term. Other EV manufacturers are also seeing pretty fantastic stock growth as well.
- grecy 6y agoAlso it helps they're the only auto manufacturer building EVs at scale, and more and more jurisdictions around the world are passing laws to ban the sales of ICE vehicles from 2030 onward.