alt Hacker NewsThe big problem for Tesla is that they cannot sustain their valuation from the car manufacturing business. There's a perpetual need to justify why Tesla should be valued an order of magnitude more than other automakers. Selling the dream of future profit is Tesla's main business.
(For the record Tesla makes roughly 10% of Toyota's profits and has almost 3 times the valuation, no Tesla shareholder is ready for a 97% share price drop so Tesla has to keep the dream machine at full steam).
Edit: Tesla is 3 times Toyota in valuation, not 5 as I said earlier, not that it changes the argument much.
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You should probably compare revenue instead of profit because Tesla and Toyota are at very different places in their development.
But Toyota still makes 3x Teslas revenue.
I'm guessing some of the 9x difference is speculative and some is because Tesla is all in on EVs/etc, which are doing well, and Toyota is still very much in ICEs, which aren't doing as well.
You can laugh at it, and most likely it will crash and burn.
But at the same time, maybe they are doing the correct analysis.
"If we stay here and grow fat the others will eat us. To infinity and beyond!".
100 years ago your business was your warehouse or your locomotive. These days, maybe your business is defined by your rate of change?
> "Edit: Tesla is 3 times Toyota in valuation, not 5 as I said earlier, not that it changes the argument much."
Per Google finance, Tesla's market cap today is $1.42T. Toyota's is ¥48.72T, or $307B USD. So that would make Tesla's valuation about 4.6 times Toyota's.
SpaceX and Tesla are just another form of the Star Citizen phenomenon.
They are a battery company. The cars are just a way to sell batteries.
I don’t know, I think at this point the Tesla stock doesn’t have a link with the company anymore and behaves like any meme coin or collectible token. Like in crypto there is some vague narrative about a crazy future but ultimately the point is only to drive further speculation ("buy it before you’re priced out/join the elite crowd that’ll own the future/etc."). The genius of Elon is having realized (I’d say around the time he tested the ground with pumping dogecoin) that in a stock market where investors don’t buy for dividends but only price speculation the underlying business doesn’t really matter, only the narrative does. Dividends are the only link with the real business, without them the price is only a function of the demand, and what Elon has achieved is maintaining demand through narrative, like in crypto, irrelevant of the company results.