alt Hacker News> later this year
One can hope that reality intrudes before the bubble gets even more dangerously inflated, but how many years has Tesla had a ridiculous P/E ratio. Even after growth stagnated and market leadership was lost in Asia and Europe. Number still goes up.
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hnthrow0287345 • today at 5:59 PM
If anything though, this shows that at least tech driven hype bubbles can stay around way longer than we think if we are looking at it from a product POV.
This just means short sellers might have a hard time sinking a hype-category stock with reasoned research because the irrationality keeps it afloat.
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I hate Musk, and I'm not going to justify Tesla's crazy stock valuation, but consider the following:
Outside of China, Tesla's probably the only company that can compete on battery prices. I don't know how accurate it was, but a news report was comparing the cost the manufacturer's pay to build the battery. Chinese companies were around $6000. Tesla was at $7000. Everyone else was around $12-15K. This is why a number of companies have exited the EV market - they just can't compete. This is why Ford lost money on every EV, despite the high MSRP. This is why the Ford CEO says "We're f####d" when he saw Chinese cars.
The only hope regular Japanese/American/European auto manufacturers have is if EVs do not gain substantial market share.
If the future is EVs, Tesla is the only non-Chinese company that has a chance.
It's depressing.