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It's not a story. Tesla has been growing revenues 50% on average for the past 10 years. Most other car makers are roughly flat. This year ICE cars, globally,
by kjksf 6y ago
It's not a story.
Tesla has been growing revenues 50% on average for the past 10 years.
Most other car makers are roughly flat. This year ICE cars, globally, are in decline.
Tesla will grow 50% on average for at least next 5 years.
Also, there has been a ton of money looking for a place to invest for the past 20 years. And there are plenty companies that are investable. Just recently we had monster IPOs from DoorDash, AirBnb, Snowflake and others.
At the same time there are many more companies that one could invest in but doesn't so it's lazy to attribute "lost of money available" to outsized successes like Tesla or Snowflake.
- nopzor 6y agofwiw even if tesla increases their revenue by 50% cagr, for the next 5 years, they will still have a -lot- less revenue than the large ice car vendors.
- jrbuhl 6y agoTesla from Sept. 20, 2019 to Sept. 20, 2020 revenue is $28.17 B. Ford revenue in the same period was $130.9 B and GM was $115.8 B. 28.17 * 1.5^5 = 213.9. That doesn't even include the inevitable decrease in sales for F and GM if Tesla grows that much.
- dmitriid 6y agoWhy didn't you pick (2019 numbers) - Toyota, $272 billion - Volkswagen Group, $282 billion And yes, even compared to Ford, Daimler etc. Tesla's revenues are quite small.
- MR4D 6y agoIt’s Profit that matters, not Revenue. Stock price is usually factored as a PE ratio - Price to Earnings. Price to Sales also exists, but usually only for emerging companies that have just gone public and are growing rapidly.
- Shivetya 6y agoConsidering the debt load of GM and Ford the valuation of Tesla is no where near the risk as both those two are both past the hundred billion mark. While both are far more established than Tesla they are also more at risk because of how much debt they carry.