Thanks for writing these articles, but I really don't think you should assist SA management in making profits by publishing there, as they are the worst sort of irresponsible clickbaiters.
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shlokavica22
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Todd Burch
14-Year Member
What's more amazing to me is that Facebook was ever anywhere near 2x the market cap of Tesla.
I hear they made a lot of money from Cambridge Analytica.
Pale Blue Dot
Member
somebody has to fight fire with fire over there.
MartinAustin
Active Member
Ex-UAW boss Dennis Williams OK'd using training center funds, aide says
Tsk tsk tsk.... bad union, bad union!!!
Tsk tsk tsk.... bad union, bad union!!!
Causalien
Prime 8 ball Oracle
Oder: Die Scheisse amerikanischen Autohäuser ein auto mit Deutsch Seele fabrizieren.
I think axles would be a great indicator, since they are heavy, bulky, take up a lot of warehouse/storage space, etc
remember the axle suppliers were among the first to be told to pause delivery when the model 3 battery pack bottleneck issues cropped up.
Just drove by what looks like a delivery center for Tesla near the factory (47623 Fremont Blvd). A little bit down the road is a holding lot full of 3s with multiple car carriers waiting to go in.
Fremont Customer Delivery Center and Holding Lot
Fremont Customer Delivery Center and Holding Lot
Esme Es Mejor
Member
RobStark
Well-Known Member
I want to see Tesla have the highest market cap amongst USA automakers.
But not because Detroit is bankrupt.
That's always interesting. But the situation with Tesla can't be directly compared with the other US automakers. Tesla has its own sales and service network; the others do not. Tesla has its own fueling network; the others do not. Tesla is also a solar roof and energy storage company; the others are not.
To truly compare valuations, for the other automakers we would have to consider the value of their franchised dealerships, and a portion of the oil industry including gas stations.
RobStark
Well-Known Member
We have seen this caveat posted over and over again. We get it.
Daimler-Benz is a conglomerate with only half of its revenue coming from Mercedes Cars.
BMW has a motorcycle division and aircraft engine division.
Honda has motorcycle,aircraft, ATV-jet ski, lawnmower garden tool divisions.
Toyota has a marine division, agriculture & biotech division, and a nascent energy division focusing on the "hydrogen economy of the future."
But we still compare them.
what’s more, compare ~2-5% annual growth to 50% annual growth and tremendous sunken assets in a business very likely on its way out (ICE).
nothing wrong with valuing Tesla like an automaker... an automaker growing at 50% per year into a market very likely to grow from about 500,000 units sold per year to about 100 million units sold per year.
The poster to whom I was responding was specifically comparing the market cap of Tesla to the other US, not foreign, automakers. In any event, he apparently was not aware of the considerations I mentioned. Thus this being posted "over and over again" for his benefit. You are free to ignore it.
Tesla sells the razor handles, the razor blades, and the beard...
Where's that one guy who was trolling a few weeks ago telling us to go long on $F?
Esme Es Mejor
Member
Very true.
One thing I haven’t seen pointed out, though, is just how little investors value the earnings of ICE automakers. If GM had the same PE ratio as the average S&P 500 company, its market cap would be around $150B.
These low valuations aren’t because they’re automakers, but because they’re stuck with a dying technology & either don’t care or don’t know how to transition to a better technology. Therefore, they’re valued like cigarette makers, or Blockbuster Video, or Toys R’ Us. The only way to avoid bankruptcy is to figure out the transition, or be acquired by a company that has figured it out.
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