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The problem is that the current stock price implies that they will be dramatically more successful than any other car company (electric or otherwise). It's all
by nonchalance 13y ago
The problem is that the current stock price implies that they will be dramatically more successful than any other car company (electric or otherwise). It's all relative to expectations.
- wooster 13y agoSome market caps from Google Finance: TM, Toyota 203.72B VLKAY, Volkswagen AG 114.33B DDAIF, Daimler AG (USA) 85.52B HMC, Honda Motor Co 71.86B BAMXF, BMW 68.69B F, Ford Motor Company 67.33B GM, General Motors 51.52B NSANY, Nissan Motor 36.86B AUDVF, Audi 36.42B TSLA, Tesla Motors Inc 21.47B FIATY, Fiat 9.35B So, no, I don't think Tesla is quite at those levels of expectations yet. (As full disclosure, I own some Tesla stock.)
- codex 13y agoWhat complicates this analysis is the fact that these other companies sell in the millions--hundreds of times more cars than Tesla does in a year. Tesla's market cap is one million dollars per car to be sold in 2013.
- marvin 13y agoAnd of course, the part which you neglected to mention: None of these companies have growth prospects which are anywhere near those of Tesla. Added in the potential disruptive potential of an all-electric car future once battery technology gets only slightly better than it is today. I agree with you up to the point that this is a complicated analysis which can't really be done, but no further. This earnings call was really very positive, but the delivery was pretty lackluster.