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Even if that all were true (it's not), Tesla could be the most important and revolutionary car company since Model-T era Ford and _still_ be insanely overvalued
by TheDarkestSoul 4y ago
Even if that all were true (it's not), Tesla could be the most important and revolutionary car company since Model-T era Ford and _still_ be insanely overvalued. Before their recent stock slide they were worth as much as every other major manufacturer _combined_. Their P/E ratio hovers around 300. Mercedes-Benz hovers around 5.
- martindbp 4y agoTeslas forward P/E, which is way more indicative of the future of the company, is 51: https://finbox.com/NASDAQGS:TSLA/explorer/pe_fwd#:~:text=Tesla's%20p%2Fe%20ratio%20(fwd)%20is%2056.0x https://finbox.com/NASDAQGS:TSLA/explorer/pe_fwd#:~:text=Tes.... I admit Q2 will be lower than Q1, but Q4 this year will likely see an even lower forward P/E if price remains the same. Sure, they could be overvalued, I'm just trying to explain why it's valued as it is for those that think it's "insane". Mercedes hovers around 5 because many investors believe they could go bankrupt if they can't successfully transition to EVs. GM, for example, will very likely go bankrupt (again). Many others as well.