Cute. Now look at all other automobile manufacturers’ market cap and compare to Tesla.
Tell me if any of that makes sense.
Comparing revenue to revenue across industries is silly. Saying they make 10% of what meta does is giving too much credit to Tesla
Better to compare their net income
600m vs 18b
30x more profit.
Clearly because they are growing like crazy. Wait a minute—-
Obviously stocks have hype and that certainly contributes here. That said, a stock price is generally defined as an annuity on future earnings.
So two stocks are identical from a hype perspective, the one with higher earnings over the long run, not just today, should be higher.
I’m not trying to explain why Tesla is so hyped or whether the calculation is right, but most finance types think in the terms described above
That is just one singular factor.
Because the market is disconnected from reality and the rules do not matter
Because investment value (which is what stock price and market cap are tied to) is about long term expected value. You can argue that Tesla’s long term prospects are inflated, but not so much beyond Meta’s.
The value of a company is not strictly profit.
There are other factors in why investors want to invest or not invest in different companies – driving share price and market cap up or down.
Tesla stock value diverged from its fundamentals and entered meme stock territory a while back. Trade it based on twitter sentiment, and don’t expect rationality.
Entirely based on the cult of personality surrounding Elon Musk. There is no rational reason for it.
Well if you listen to bulls like Dan Ives … robotaxies
Mostly because Tesla’s CEO has been effective at selling the company’s vision to investors (“FSD launched any day now bro” for a decade).
The good news for pragmatists is that his spell is weakening.
Meme stocks. Fomo people buy them, they pump. Institutions sell. Moves money from idiots to hedge funds. Classic dumb money move. Avoid all memstocks long term.
Companies market value the business equivalent of my mom thinks I’m handsome
Stock market hasn’t been about fundamentals in a long time.
Isn’t it always about perception anyways? People look at a trajectory and disregard real world considerations.
Nvidia vs Apple for example? Apple makes significantly more, but Nvidia keeps growing their profits where apple keeps declining.
For the same reason trump is back in office. Lots of idiot supporters.
TSLA stock should be like $50 maybe even lower if this was a market based on fundamentals. But I guess people think they will have the first robots building civilization on Mars or something.
Tesla’s market cap reflects a (very speculative) bet on its potential to generate future revenue beyond just selling cars. Just like how Google evolved far beyond search, Amazon beyond books, and Netflix beyond DVD rentals, a lot of people see Tesla as more than an automaker. While traditional car companies will probably remain primarily in the automotive business, Tesla is positioned to profit from a broader ecosystem—autonomous driving software, energy storage, AI systems, and robotics. That doesn’t necessarily mean its valuation is justified, but it explains why comparing Tesla to legacy car manufacturers isn’t exactly an apples-to-apples comparison.
You can’t compare incomes and hold them against two completely different markets. What the fuck is this post?
The fact that crypto currencies also have “market caps” and most don’t have any earnings, tells us that investors buy things based on predicted future asset value increases rather than current abilities to generate a profit.
Because “rational markets” is an oxymoron.
Tesla is what you call “overvalued.” Your welcome.
completely different industries.
you’re comparing apples to oranges.
It starts to make sense when you look at Tesla’s products compared to the competition for most of it’s existence.
You had goofy little, short ranged, slow charging clown cars that made weird nerds happy, but that normal people turned their noses up at.
And even when you had other manufacturers start making compelling product, they were saddled with sub par software (Google VW ID.4 and Volvo software issues) and sub standard fast charging networks which were, and still are, a crap shoot on whether they’ll work or not.
Hence why other automakers started setting up their EVs to be able to use Tesla’s network.
29 comments
Cute. Now look at all other automobile manufacturers’ market cap and compare to Tesla.
Tell me if any of that makes sense.
Comparing revenue to revenue across industries is silly. Saying they make 10% of what meta does is giving too much credit to Tesla
Better to compare their net income
600m vs 18b
30x more profit.
Clearly because they are growing like crazy. Wait a minute—-
Obviously stocks have hype and that certainly contributes here. That said, a stock price is generally defined as an annuity on future earnings.
So two stocks are identical from a hype perspective, the one with higher earnings over the long run, not just today, should be higher.
I’m not trying to explain why Tesla is so hyped or whether the calculation is right, but most finance types think in the terms described above
That is just one singular factor.
Because the market is disconnected from reality and the rules do not matter
Because investment value (which is what stock price and market cap are tied to) is about long term expected value. You can argue that Tesla’s long term prospects are inflated, but not so much beyond Meta’s.
The value of a company is not strictly profit.
There are other factors in why investors want to invest or not invest in different companies – driving share price and market cap up or down.
Tesla stock value diverged from its fundamentals and entered meme stock territory a while back. Trade it based on twitter sentiment, and don’t expect rationality.
Entirely based on the cult of personality surrounding Elon Musk. There is no rational reason for it.
Well if you listen to bulls like Dan Ives … robotaxies
Mostly because Tesla’s CEO has been effective at selling the company’s vision to investors (“FSD launched any day now bro” for a decade).
The good news for pragmatists is that his spell is weakening.
Meme stocks. Fomo people buy them, they pump. Institutions sell. Moves money from idiots to hedge funds. Classic dumb money move. Avoid all memstocks long term.
Companies market value the business equivalent of my mom thinks I’m handsome
Stock market hasn’t been about fundamentals in a long time.
Isn’t it always about perception anyways? People look at a trajectory and disregard real world considerations.
Nvidia vs Apple for example? Apple makes significantly more, but Nvidia keeps growing their profits where apple keeps declining.
For the same reason trump is back in office. Lots of idiot supporters.
TSLA stock should be like $50 maybe even lower if this was a market based on fundamentals. But I guess people think they will have the first robots building civilization on Mars or something.
Tesla’s market cap reflects a (very speculative) bet on its potential to generate future revenue beyond just selling cars. Just like how Google evolved far beyond search, Amazon beyond books, and Netflix beyond DVD rentals, a lot of people see Tesla as more than an automaker. While traditional car companies will probably remain primarily in the automotive business, Tesla is positioned to profit from a broader ecosystem—autonomous driving software, energy storage, AI systems, and robotics. That doesn’t necessarily mean its valuation is justified, but it explains why comparing Tesla to legacy car manufacturers isn’t exactly an apples-to-apples comparison.
You can’t compare incomes and hold them against two completely different markets. What the fuck is this post?
The fact that crypto currencies also have “market caps” and most don’t have any earnings, tells us that investors buy things based on predicted future asset value increases rather than current abilities to generate a profit.
Because “rational markets” is an oxymoron.
Tesla is what you call “overvalued.” Your welcome.
completely different industries.
you’re comparing apples to oranges.
It starts to make sense when you look at Tesla’s products compared to the competition for most of it’s existence.
You had goofy little, short ranged, slow charging clown cars that made weird nerds happy, but that normal people turned their noses up at.
And even when you had other manufacturers start making compelling product, they were saddled with sub par software (Google VW ID.4 and Volvo software issues) and sub standard fast charging networks which were, and still are, a crap shoot on whether they’ll work or not.
Hence why other automakers started setting up their EVs to be able to use Tesla’s network.
[https://chargedevs.com/features/how-automakers-disappointment-in-electrify-america-drove-them-into-teslas-arms-ev-charging-is-changing-part-1/](https://chargedevs.com/features/how-automakers-disappointment-in-electrify-america-drove-them-into-teslas-arms-ev-charging-is-changing-part-1/)
From just a year ago:
[EV Road Trips Suck Now (Except in a Tesla)](https://www.youtube.com/watch?v=92w5doU68D8)
From just two weeks ago
[A 1,000 Mile Road Trip In A Tesla Is Getting Way Too Easy!](https://youtu.be/V1zbl08ttcY?si=pIYlkX_tQRReiVzZ&t=1345)
5 out of 12 chargers inoperable on a major Interstate is inexcusable
But it gets “better”
[https://insideevs.com/news/753915/shell-ea-evgo-tesla-cahrging/](https://insideevs.com/news/753915/shell-ea-evgo-tesla-cahrging/)
From March of this year
|Charging Networks (As per Consumer Reports) |% Of Charging Sessions Laced With Problems |
|:-|:-|
|Shell Recharge |48% |
|EVgo |43% |
|Blink |41% |
|AmpUp |38% |
|Electrify America |35% |
|Volta|33% |
|EV Connect |31% |
|ChargePoint |24% |
|FLO |24% |
|Rivian |5% |
|Tesla |4% |
Why does Tesla have such a high valuation compared to other auto makers?
Because the important stuff just works.
Tesla zealots worshiping their crazy coot boss-god.
The Tesla fandom is so toxic they threaten all of America starting with the stock market.
Tesla stocks owners are lunatics. Its that simple.
They aren’t being valued based on today’s profits. They are being priced based on potential profits from robotics and self driving taxi service.
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