3 ms·

This is peak HN, calling 30% annual growth on a $750 billion company flat

• grey-area 6y ago
  The $750 billion valuation (approaching the combined value of other car companies) is precisely why I said that it was flat compared to the valuation growth, the valuation has grown about 1300% in the last few years. Also the vast majority of those profits are not car sales but regulatory credits and Bitcoin sales, they are barely in profit on selling cars, which makes the valuation even more absurdly optimistic. IMO Tesla will do well and get to perhaps 30% of the global car market and some of energy, but that still doesn’t justify their valuation today, let alone any future growth.
  • DarmokJalad1701 6y ago
    > they are barely in profit on selling cars Did you even see the earnings report yesterday? I don't care about non-cash expenses (Stock-based compensation of 614M). They made a profit of $1.05 billion out of which ~102M was from the bitcoin sale and 518M was from reg credits. In what world is ~$430 million in a single quarter "barely anything"?
    • grey-area 6y ago
      Greater than 60% of their profit is still from one-offs which are likely to go away soon (or even become liabilities like the bitcoin), their PE ratio is > 1000, and they have only just turned the corner and started profiting from car sales; in previous years they made a loss, which is fine in a growing company, but they are not some super-profitable company which justifies their valuation - their valuation is a projection of future growth, and I don't think it's unreasonable to say their valuation is very optimistic given their sales and position in the market.