What do you think-whether telsa is a tech company or an auto company. Recently, it has crossed $500 stock price with market cap touching 100 billion. Some analysts/ speculators are predicting price of $6000 per stock in few years which will set its market cap to 1 trillion. Blinders, what are your views?
C. Fraud
Explain?
Every company in every industry now needs tons of tech to be successful. As a result, the term is becoming meaningless. Tesla is a car manufacturer (or a battery manufacturer if you prefer), Uber is a taxi company, Amazon is a retailer (and a couple other things too), Google is an advertising broker.
As @violan has mentioned, it is an auto company and needs to be valued like one. Sometimes market movements are because of big fish pulling the strings and not a true reflection of the company's worth. It will reach its equilibrium sooner or later.
Why tech needs to be valued higher than other sectors. Value is demand supply, if Tesla keeps giving modes of transportation for next 100 years what's wrong in valuing them higher. I never understood this theory that if it's not tech it need not be valued higher.
I think I did not explain my position well. What I meant was that even if it is tech, you need to look at other competitors in the industry before putting a price tag. If you're getting on Tesla to produce the same kind of innovation for the next 100 years then you also need to account for similar/better innovation that Daimler/Porsche/Volvo will come up with and their values will increase to until it comes back to a normal state. If Tesla is in the auto industry and you're pricing companies by no of cars sold, revenue, sales and future sales then you need to consider that Volvo also produces 1m cars per year which is 3x the no of cars produced by Tesla. Similarly, Mercedes can easily get high numbers out of its doors. If their tech matches Tesla's which it will soon, what's stopping them from switching over to EVs given that there is not much capex as compared to Tesla in that Tesla has to build factories and supply chain and machinery and sales in different markets and still edge out all other companies with their tech. That's a huge ask. Not to say that they can't pull it off. All I'm saying is that eventually industry dictates the value to a great extent.
Every other tech company/auto company is using patent that Tesla gave them for free. Yes you are right you should look at horses other than the one who is winning and has won some races in past. But mostly Tesla's price is because of its execution and the IP it generates.
My patent thing is not 100 percent true for everyone though, just to be clear
They just want ridiculous tech valuations and access to capital markets to support their stock pump.
Hah 44 v 44. I voted tech company but really it's both.
TESLA stock has gone mad ! Short sellers lost $1 billion .
Should I buy 1 tesla stock now? Before it rises
Neither. They are an energy / battery company
They buy from Panasonic
But majority of its revenue coming from Automotive than its energy arm.