The fact remains that even if Tesla has a "dismal year" as of yesterday TSLA was selling at about $164. Ford Motor Co. was about $12 and General Motors was in the mid- $40 range.
So it may have been over valued in 2021. But why isn't it valued somewhere around GM's price today ? And where do you think it will be when Tesla is in fact bringing in revenue from business divisions that have extremely low costs and high markups like google, Microsoft and Apple ?
It’s the price earnings ratio that matters not the price of the stock. The price of the stock is in relation to the number of shares out there.
For example, I know you know this, but others may not. Last month Walmart was $180 a share this month it’s $60 a share because they increased the number of shares of stock to bring the price down but the PE remains the same.
The people who had the stock at $180 a share now have three times the amount of shares at $60 a share.
So bringing up the price of a stock means nothing and it’s just an example of why.
You asked, why isn’t it valued the same as General Motors this year?
Well, isn’t it on the way to that valuation?
In 2021 it was almost 100 times earnings. Tesla is selling at 39 times earnings and who is to say in two years it will not be selling at six times earnings like General Motors?
Tesla is a speculative stock, it’s one that computer algorithms use to daytrade and trade by the minute, if not seconds.
There’s many stocks like that on the exchange, and when you have such a high PE ratio it’s the one that every day Joe loses his savings on
It’s no different than bitcoin, just speculative
I remember owning bitcoin at $7500 a coin people thought it was insane at $20,000 a coin now you can trade it up to 60 and $70,000 a coin
It’s all speculation and just like Tesla sold at 100 times earnings two years ago and people lost a fortune next month bitcoin can be selling at $30,000 a coin and people lose a fortune.
Let’s not forget at the time electric vehicles were new to the market and Tesla was the only game in town and everybody including their mothers bought the stock and wanted it in their portfolio as the stock price gets trashed by over 150% less less people are going to wanna own the stock
I’m only replying because you were comparing it to Ford and General Motors. Let’s bring Toyota into that as well.
The industry in general sells at five to 15 times earnings it’s becoming apparent that Tesla is failing to impress shareholders and something has to change for the better and if it doesn’t, the sock will be with the traditional PE ratios
Hope this makes sense. I’m using text to speech in my car while I wait for my wife to get out of the house.!!!