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So Tesla's enterprise value is $426.5 billion and VW's is $473.9 billion? Regarding the "operating as a bank", are we talking about net debt? I'd guess that if

So Tesla's enterprise value is $426.5 billion and VW's is $473.9 billion? Regarding the "operating as a bank", are we talking about net debt? I'd guess that if VW loaned money to customers those loans would be assets, right? They wouldn't get the cash from the customer, but they'd get something that looks about as good for their balance sheet hopefully?

pas 4y ago
right, but they get the financing for those loans from other banks or from the bond market. they can't just make cars from thin air after all :)
bryanlarsen 4y ago
The Enterprise Value calculations subtract cash from debt to determine the net debt level. Most think you should also subtract customer receivables as well. In VW's case that is about $150B. So VW's true enterprise value is closer to $300B in my opinion.