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BYD simply shows that Tesla is overvalued. they have battery expertise - making battteries for everyone else. can produce more cars, more cheapily than tesla an

• JumpCrisscross 2y ago
  > why should tesla be valued more than the other car companies ? Honest answer? It's a meme stock. There is excess capital in the economy. Some buy watches and cars. Some give to their church. Some buy Bitcoin or Tesla. There is, of course, intrinsic value to the company. It consists of a car company, an energy company and options on a robotics and a self-driving car company. The car company is worth some tens of billions of dollars. Given the competition and fact that BYD is giving it away for free, the self-driving piece seems more like future table stakes for the car company than a revenue driver it once could have been. The energy business is solid, but suffers from the same weaknesses (strong competitors, lack of differentiation and international prospects trashed by Musk) as the car company--possibly another tens of billions of value. So I guess if you need a rational explanation for the valuation, it's tremendous option value being placed on Tesla's prospects (a) as a robotics business and (b) to shed the shadow cast over it by Musk's politics.
• ZeroGravitas 2y ago
  Tesla themselves have been saying they aren't a car company for a while now. They're an AI and Robot company apparently. Despite the CEO having a different, separate AI company that he'll redirect chips to when it suits him. They have a decent energy storage business but since that is basically batteries, I don't see that they have much moat there.