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You’re trying to value a company without looking at debt, so you’re missing the big picture. Total Debt: VW. $237B GM. $192B Toyota. $190B For
by zaroth 6y ago
You’re trying to value a company without looking at debt, so you’re missing the big picture.
Total Debt:
VW. $237B
GM. $192B
Toyota. $190B
Ford. $155B
Daimler.$108B
Nissan. $42B
BMW. $80B
Honda. $42B
So your market cap analysis missed ~$1 trillion of enterprise value in your comparison set.
Simply put, the stock market cap is the total company value minus the debt.
Tesla debt by comparison is $14 billion.
All those companies together being worth only about 3x Tesla is perhaps surprising, but the market is weighting for the possibility that their entire current product lines will be virtually unsellable if not illegal to sell in a decade or so.
- ksec 6y agoThank You. Are there any easy way to simply get this Data without manually looking up each Stock's balance sheet?
- deleted 6y ago[deleted]
- statguy 6y agoTesla sells less than 1% of the vehicles that these companies sell combined. Are you seriously suggesting that Tesla production will increase by 100x within a decade? Even if we assume that 100% of the vehicles sold in a decade are electric (highly unlikely), the majority of the increase is likely to come from the other companies. They are not going to sit still and let Tesla devour them.
- pdog 6y ago> Are you seriously suggesting that Tesla production will increase by 100x within a decade? Tesla scaling electric vehicle and battery production by 60% CAGR for a decade doesn't seem too ridiculous when you put it that way. And that doesn't factor in new products. Look at Apple in 2007.