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What happens when most of your team is Indian?
Tech Industry
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PM is irrelevant role and will die in next 2-3 years.
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The man I love hates me because I’m Vietnamese
Software Engineering Career
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Principal Software Engineer TC~300K at Microsoft vs 600K at Meta. Is 300k pretty low for Principal scope?
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If your team does daily standups, your manager is a micromanager
How does TSLA have such a high revenue multiple? It has competitors on all sides, is not a software company, is an automaker (low profit margins, low revenue multiples), is generating profits via an undependable source of income (regulatory credits), etc. Everything about Tesla screams “low revenue multiple” and “overvalued”, yet, somehow, TSLA has a higher (much higher, in some cases) revenue multiple than many software companies. Am I alone in this? How are investors justifying the revenue multiple? Please explain your point of view in the comments. Thanks. EDIT: Aggregating the comments so far, it looks like the most important justification is the belief that ~50% growth will continue, and that other automakers will not be strong enough competitors to reduce this growth. Some are also pointing to Tesla’s non-car products as evidence of new growth potential. TC: $370k
It's called hype
Because Elon, the Aspergers grift god, is the ceo and he says they’ll have a self driving car to Mars by 2024
so were going after social disabilities now huh
these are the same people who say every feature we ship needs to be totally accessible
QE
That is an interesting answer. Do you have evidence that Tesla has benefited disproportionately from QE? I love your username, by the way, and I love your truck! I just saw two today, and they were beautiful.
Thanks and thanks! It def wasn’t just QE but the rocket fuel was def the fact that QE Helped investors ignore fundamentals. Tesla was the lucky benefactor.
Market cap is irrelevant to revenue and profit.
It is not true that they are irrelevant. It is true that they are only part of the puzzle. What else is there in the puzzle that justifies Tesla’s valuation?
That’s fair. What I meant is, if you were to make a regression analysis, revenue and profit, do not have an impact on market cap. Example companies such as Uber, Lyft, Airbnb, etc are all companies that have not generated a profit but their growth speculation drive market cap. Market Cap is heavily dependent on potential and not actual.
I can already sense TSLA fanboys coming after you and Meta for this post
Yeah, I figure that will happen. I am genuinely curious enough about the justification for the valuation that I am willing to suffer it.
There is no justification. The Tesla valuation is simply out of touch with reality. The fundamentals of the company and the low margin automaking industry in no way justify the absurd P/Es TSLA has had. The recession has a decent chance at bringing a lot of these hype stocks back down to reality. A lot of these stocks like TSLA have run up driven by FOMO and endless money printing. It was never sustainable. As we all know, markets can be hype driven in the short term but fundamentals will always win sooner or later in the long run.
Because tesla is good for the world, all things considered and facebook is bad
Facebook was just one example of a software company with a lower revenue multiple. Do you think that it really is about the supposed good Tesla? That seems somewhat plausible, but striking. I am very supportive of the electric vehicle market but think Tesla undoes its mission with its wastefulness (replacing parts and condemning cars rather than right to repair, for example). Other car companies have the potential to do more good via electrification. Tesla has done its good by pressuring the market to create more electric vehicles, but I think other companies can create an implementation that is better for the environment.
Potential growth. Will that growth actually materialize? Nobody knows.
This argument has seemed the most plausible to me, but given the extreme increase in competition (growth risk) and the difficulty in achieving long-term profitability (profitability without regulatory credits), it has also seemed like a miscalculation to me.
TSLA grows much faster than META
Tesla net income is $10B growing at 50%. Meta is $35B growing lets say 5-10% (actually declined last 12 months). Price/earnings/growth (peg) for both is around the same. So Tesla is not more expensive than FB even at their current market caps based on these future predictions
Tesla net income for 2021 is 5 billions meta is 40. Metas revenue is 117bills Tesla revenue is 50bills for Tesla to even be close to meta it needs to generate a revenue of 400billions yearly…
And just for comparison Toyota generates 25bills of net income with 250bill revenue
I guess it’s also about growth, or at least expected/speculated growth.