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.
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.
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.