Ford’s current Market Cap (Price of stock times all the stock) is $59.1B
GM’s current Market Cap is $55.3 B
TESLA’s current Market Cap (which is down almost 20% since Elon Musk mortgaged some of his shares to buy Twitter) is a whopping $908 billion dollars!!
I have nothing against any of these companies, but that valuation is just plain stupid. It is not sustainable. Some combination of buying Ford and GM and shorting Telsa just plain makes sense right now.
Yeah, there is a reason that Gates is shorting Tesla. They are massively overvalued. As other companies continue to get into the market, Tesla’s share will go down.
Right now (Trailing 12 months) TESLA’s gross sales were $62b
Ford’s were $136.6b, and
GM’s were $127b.
Of course TESLA investors don’t care about past sales. They are counting on TESLA’s future sales, but still the stock price is way out of line with sound investment principles.
Besides the hype in Tesla. I’ve always thought that part of the reason for such a high valuation, is people trying to foolishly backdoor invest in SpaceX/Starlink.
There is no way people really think an electric car company who’s vehicles are too expensive for most is worth that much, right?
Well green tech is sexy, and people made money in the Dutch Tulip fiasco if they got in an out soon enough, but yes. We agree. The price is crazy and people are not buying it on the company’s underlying value.
I am not an investment professional. I don’t know how to short a stock more than 24 months. (TESLA price might hang on for years before the fall.) Still it’s valuation relative to the S&P and especially relative to Ford and GM has me searching for ways to do it.
This is true. I currently hold stock in some green/green adjacent ETFs.
This is true. If I had started investing years ago, I would have gone into Tesla as well. I also feel they have a few more good years before the price begins to drop significantly.
Just too expensive for me, for what I believe would be small gains before the drop.
It is hard to know how much a company should be valued. (I still remember 6-cent postage stamps and 25-cent cans of soda.) but I have to think when TSLA is valued at EIGHT TIMES ford and GM combined something is askew and there are money-making opportunities.
