First let me say I'm a total Tesla fanboy. I hate gasoline and cars that burn it. I've been driving electric for fifteen years, since I got my Zap Xebra. Then I got the Roadster. Now I have a Model 3, LR RWD with EAP and the fancy interior. And I love it. I also own some shares of TSLA which I bought because I loved my Roadster so much. I think my basis after the split is around $7. Not sure, though. Could be as much as $10 or $12 because some of it comes from the merger with Solar City.
But...
The internet tells me that Ford makes around 11 million cars a year and has a market cap of around $253 billion; GM makes around 6.8 million cars a year and has a market cap of around $74 billion; and Toyota makes around 11 million cars a year and has a market cap of around $253 billion. Tesla makes around 200,000 cars a year and has a market cap of $746 billion.
Toyota's market cap is equal to about $23,000 times the number of cars made per year. Teslas are twice as good as Toyotas (that's my opinion and I'm sticking with it!) so its market cap should be by this measure, $50,000 times the yearly car output, or around $10/share. But it's not. It's $3,730,000 times the number of cars made per year. As I write this, the share price is $744.49.
My question for people who understand this stuff is "Why?" Why is TSLA worth 162 times as much as TM per car built per year? Five times I could understand, because Teslas are (IMO) so much better. Ten times maybe, for the growth potential of the BEV market. Twenty-five times if the market really believed Tesla was going to solve FSD before anybody else, maybe. There are folks here who believe that, but does the market believe it?
Is the stock market just totally illogical? Or are there fiscal/financial reasons for it?
You don't have to convince me that Tesla is the best thing since sliced bread, because I'm totally on board with that. I'd like to understand why the stock market, with its financial analysts and its fund managers and its brokers and market makers and all the rest, values TSLA so high.
Thanks in advance for any insights you choose to offer me.
But...
The internet tells me that Ford makes around 11 million cars a year and has a market cap of around $253 billion; GM makes around 6.8 million cars a year and has a market cap of around $74 billion; and Toyota makes around 11 million cars a year and has a market cap of around $253 billion. Tesla makes around 200,000 cars a year and has a market cap of $746 billion.
Toyota's market cap is equal to about $23,000 times the number of cars made per year. Teslas are twice as good as Toyotas (that's my opinion and I'm sticking with it!) so its market cap should be by this measure, $50,000 times the yearly car output, or around $10/share. But it's not. It's $3,730,000 times the number of cars made per year. As I write this, the share price is $744.49.
My question for people who understand this stuff is "Why?" Why is TSLA worth 162 times as much as TM per car built per year? Five times I could understand, because Teslas are (IMO) so much better. Ten times maybe, for the growth potential of the BEV market. Twenty-five times if the market really believed Tesla was going to solve FSD before anybody else, maybe. There are folks here who believe that, but does the market believe it?
Is the stock market just totally illogical? Or are there fiscal/financial reasons for it?
You don't have to convince me that Tesla is the best thing since sliced bread, because I'm totally on board with that. I'd like to understand why the stock market, with its financial analysts and its fund managers and its brokers and market makers and all the rest, values TSLA so high.
Thanks in advance for any insights you choose to offer me.