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by coralreef
3275 days ago
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The house's market value is the same as its market cap. It would still be $1m in both cases. How it was raised is irrelevant; you won't find a buyer for less or more than $1m if that is its market price. GM and Tesla are both public market stocks. Regardless of how they raised previous capital, the market is valuing Tesla higher. |
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That's because houses are quoted in total, not just the equity piece. Stocks are only the equity. (They could quote just the equity piece of houses. In that case it would be unhelpful to compare prices without checking the debt.)