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> meaning it would take until the year 3521 for it to earn back its market cap There are much better ways to make this argument than extrapolating based on cur
by tlrobinson 6y ago
> meaning it would take until the year 3521 for it to earn back its market cap
There are much better ways to make this argument than extrapolating based on current earnings forever.
e.x. “Tesla would have to capture X% of worldwide automobile sales AND capture Y% of worldwide taxi/ridesharing market share AND etc”
- arcticbull 6y agoI'm aware of the bull case. However in general, pie-in-the-sky dreams aren't factored into asset prices like that. For instance, Apple has a market cap of 2.2T a P/E of 40. Tesla has a market cap of 0.8T and a P/E of 1602. Apple could get into all those markets, so should we value it at, uh, let me run the numbers here... 88 trillion dollars?
- tlrobinson 6y agoI’m not trying to argue Tesla isn’t overvalued, I just think simply pointing to the P/E isn’t a good way to make that argument.