Surreal - Tesla’s market cap is now bigger than Ford’s was at its peak

It's not that hard to believe. Obviously from an investment POV the valuation is preposterous, but in terms of market dynamics, you have a very heavily shorted name which reported better-than-expected results over the last few months, plus thin supply of shares - is anyone really selling now at 450 who wasn't selling at 250 back in 2014-15, or 350 in 2017-18?
 
Specterx said:
It's not that hard to believe. Obviously from an investment POV the valuation is preposterous, but in terms of market dynamics, you have a very heavily shorted name which reported better-than-expected results over the last few months, plus thin supply of shares - is anyone really selling now at 450 who wasn't selling at 250 back in 2014-15, or 350 in 2017-18?
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They have no value. The comps on the company are basically fabricated and as far as I remember they have never turned a profit.

Here's a big thinking question: how can a company have a value greater than 0 if they've never been profitable? Tesla is spearheading the IPO darlings and it looks remarkably like 1999-2001 again.
 
gaussian said:
Here's a big thinking question: how can a company have a value greater than 0 if they've never been profitable?
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Central Banks have lowered the hurdle rate for investment to 0%, so yeah, why not? The only thing that matters today is "the story".
 
gaussian said:
They have no value. The comps on the company are basically fabricated and as far as I remember they have never turned a profit.

Here's a big thinking question: how can a company have a value greater than 0 if they've never been profitable? Tesla is spearheading the IPO darlings and it looks remarkably like 1999-2001 again.
More...

I wouldn't be so dogmatic. TSLAs corp governance is terrible but claims of fraud have so far not been supported by any clear evidence (many have looked hard). The recent massive short squeeze was set off by the bear thesis of "structurally unprofitable, busted growth story" running into reasonably solid numbers. The company is clearly in a much stronger position today than it was a couple of years ago.
 
History already had a Tucker Automotive story. With globalization in full effect, a small portion of the portfolio could be allocated. Regardless it should make for an interesting page in automotive history. Long TSLA...
 
gaussian said:
Here's a big thinking question: how can a company have a value greater than 0 if they've never been profitable? Tesla is spearheading the IPO darlings and it looks remarkably like 1999-2001 again.
More...
Plenty of companies spent years building market share before turning a profit. Amazon might be a company you've heard of? No real profit for nearly a decade, now nearly a trillion dollar market cap. Would you have assigned zero value to the company in 1999-2001?

BTW, Tesla has had 5 profitable quarters.
 
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