3 ms·

The market can stay irrational far, far longer than I can stay solvent.

• redox99 3y ago
  Tesla's P/E with a market cap of 55B would be 5.5. How is that overvalued?
  • sroussey 3y ago
    That’s more than GM.
    • CydeWeys 3y ago
      So? Tesla is currently earning about 50% more profit than GM is, surely it should correspondingly be valued higher?
• danielmarkbruce 3y ago
  Pffft. They have done over 10 billion net in the past couple years. High ROE. They have a big, durable competitive advantage with their buying process v other companies (just go through the buying process across a number of car types). They have a big competitive advantage in staff capabilities, also in the ability to actually produce software. Elon is no dummy. He targeted fat tired old industries to attack. It was brilliant. He now faces possibly the weakest competition in large business. Suggesting it's worth less than $55 billion is silly.