4 ms·

Tesla

• Sohcahtoa82 5y ago
  Not a chance. As it is, they're incredibly overvalued, even after their fall from almost hitting $1B. At their current market cap of ~$663B, they still have a P/E ratio of over 650. That is absolutely insane.
  • lwansbrough 5y ago
    Perhaps that's why Michael Burry is shorting it.
    • pmorici 5y ago
      He isn’t shorting it. He bought put options around the time it was added to the S&P 500 in late 2020. Probably a bet that most companies have a pop and return to trend period following addition to S&P as well as a bet that interest rates would rise which affects stocks being valued on a discounted cash flow basis.
  • pmorici 5y ago
    It is a reflection of very high growth and is being valued using a discounted cash flow model based on expected future earnings. Extremely rational.
    • Sohcahtoa82 5y ago
      Tesla would have to increase earnings by 20x to make their current P/E rational. And I just don't think that's realistic. At least not within the next 10 years.
      • pmorici 5y ago
        Yes, my assumption is they will do that in ~5 years.