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I am very happy with the Tesla company, CEO, marketing, and cars, but I can't believe that it should be worth 1 trillion dollars. A trillion is one with 12 zero
by flexie 5y ago
I am very happy with the Tesla company, CEO, marketing, and cars, but I can't believe that it should be worth 1 trillion dollars. A trillion is one with 12 zeros.
I know you can't compare valuation and production of a company, but still. If Tesla were making 10,000 dollar profit per car - and they don't - they would have to produce 100 million cars just to make a trillion. They produce less than 1 million per year. I know they also sell batteries etc. but it's still mainly a car company.
Their yearly profits might be a few billion. So their value is more than 100 times their yearly profits. This is insane for a manufacturing company. Currently their P/E ratio stands at more than 330. VW, a very well run auto manufacturer has a P/E ratio of less than 6, Ford 17, Mercedes-Benz 7, BMW 5, Hyundai 15.
These are all companies with electric cars on the road and a future that is totally committed to electric vehicles. These are all companies that already have production facilities, etc.
I like Tesla and their business model. I just think the stock is hyped way beyond what is sustainable.
- machiaweliczny 5y agoStock is usually valued at 10x profits, so they just have to 10x production to be quite resonable (given your assumption).