What makes tesla valued at $300 billion company? It's not cheap at all where everybody in the future can buy and drive tesla at least not in developing countries, also its current market is only in rich countries like US, Europe, and China. Even it expands business globally to all countries, who will spend 30000$ (assuming starting price in near future) to buy especially from developing countries. It is considered a luxury to spend that amount of money in developing countries and compared to Toyota and Honda which have $150 billion and $50 billion market cap, how is tesla's market cap justified. Who is inflating this stock price so crazily?
Dumb short sellers are losing their shirts to inflate TSLa stock price.
No way.
The value is determined not based on what it is, but by the probability to reinvent itself in the future and the best predictor of that is past reinventions. Now, ask yourself whether Tesla has done enough in the past to convince you that it can reinvent itself in the future.
Even if we assume that Tesla produces fully autonomous and for a price comparable to normal toyota or hondas how can it cross market cap of these unless we assume everyone in the world who has toyota and honda will buy tesla as well? At the end its a car only difference is source of power. How a car can change human life so drastically. Its comparing like everyone in the world buys and uses a mobile phone.
Tesla also builds a closed system with its own fast chargers which an advantage over other manufacturers in the eyes of the consumer. I can't tell the future and other people can't do it either, so they just bet on Tesla to figure it out. Figure out how to go beyond just the car consumer market, figure out how to gain the next unfair advantage over the likes of Nissan and VW.
People aren’t betting on Tesla, people are betting on Elon Musk. Energy is the key, not the cars.
It also might have to do with the fact Tesla’s gross margins are astronomical for the automotive industry. 2.5x GM, Chrysler, Ford.
But still tiny compared to software and true tech companies. Auto manufacturing is a low margin business. Even Porsche and Ferrari who have the largest margins are not even close to Tesla in market cap if margin was everything.
Growth / potential growth also has a lot to do with valuations. Tesla’s growth is probably 100x other car manufacturers.
Remember iPhone vs Nokia? Tesla is iPhone and Toyota is Nokia.
Iphone is disruptor whereas Tesla is not unless it flies in air avoiding traffic. I don’t see Toyota business not being disrupted by Tesla at all
Nobody will be driving gas cars at some point in the future. The question is when that will be and how quickly traditional car companies will adapt. Tesla has a head start, but they're not going to put these other companies out of business, like Netflix did to blockbuster.
No. but do you think an iPhone is worth 900$. If you go to Shenzhen and ask few suppliers who build and assemble various iPhone parts, they'll tell you that it costs only 100$. It's all about loyalty.
True but loyality will not take the business too far. Everybody wants or appreciates iphone but they buy cheap samsung at the end (talking about people outisde US)
Apple captured 32% of overall global revenue in the mobile phone industry and 66% of all profit in the third quarter of 2019, according to a new report from Counterpoint Research. In distant second? Samsung, with just 17% of profit, in spite of growing 8.4% year-over-year in Q3, and selling between 20 to 30% of all mobile handsets on the planet.
Tesla will become a Trillion dollar company within the decade.
The smart money knows that the future of Tesla does not only reside in its vehicles. Nobody in this thread has brought up the energy division of Tesla - that means your typical investor is myopic and only sees Tesla at face value. Renewable energy and the ability to harness and store power is the future. This is where you tap the developing world whose electricity supply is intermittent. Stop seeing Tesla for what it is now, see it for what it can be. We offer cutting edge technology from a power management standpoint. Sunrun has acquired Vivint - a necessary consolidation to compete with Tesla in the solar market. There’s so much more to it that you just don’t see yet.
No.