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The problem is that they also built their whole story on Musk being the secret sauce and the magic sprinkle. He is the justification behind the PE ratio of (goo
by rich_sasha 1y ago
The problem is that they also built their whole story on Musk being the secret sauce and the magic sprinkle. He is the justification behind the PE ratio of (googles) 187x.
Toyota's PE ratio, for a random comparison, is 6.5. It is unfair in many ways, but still, it shows the scale of the valuation gap!
- xiphias2 1y agoI don't see any problem with it, but this just means that Elon stepping down would be the worst decision for Tesla, probably halving it's market cap. I just don't understand the reason, why any Tesla shareholder wouldn't like the 400% return in 5 years, just because BYD had even better return and forced some margin compression on Tesla.
- rich_sasha 1y agoThe problem is, if Musk is the TSLA 30x value multiplier, if he leaves then price crashes 30x. And if you don't like the 30x number, pick your own. By comparison with non-Tesla car makers, the discount would likely be massive. Even 2-3x would be pretty crazy.