4 ms·
If it’s making more profit per vehicle than all other car companies combined, while continuing to grow its business at a rapid clip, then do you think that just
by jliptzin 3y ago
If it’s making more profit per vehicle than all other car companies combined, while continuing to grow its business at a rapid clip, then do you think that justifies the market cap?
https://www.visualcapitalist.com/charted-teslas-unrivaled-profit-margins/ https://www.visualcapitalist.com/charted-teslas-unrivaled-pr...
Or what about rapidly growing revenue every year, which no other car company is currently able to do?
https://www.macrotrends.net/stocks/charts/TSLA/tesla/revenue https://www.macrotrends.net/stocks/charts/TSLA/tesla/revenue
- wredue 3y agoJust no. Teslas revenue growth is rapidly slowing. Growth contracting by 50% each year since 2019 Tesla has .66x the revenue of GM but 18x the market cap. Even at todays rate of growth, teslas market cap today is valued at like 100 years in the future. Disclaimer, I didn’t even do napkin math because teslas valuation is utterly absurd and claiming it’s proper in comparison to other companies in the same segment is completely ludicrous.
- jliptzin 3y agoWhy are you not comparing profit? Or taking into account the debt levels of each company? There is more to valuation than revenues
- wredue 3y agoWho cares? No company with declining growth and half the revenue is worth 18x another in the same segment.
- jliptzin 3y agoAnd what if one of those companies has $200 billion in debt to service at a high interest rate and the other has close to no debt? How does that impact your calculations? I would love to see your valuation model.