[thisisit]

You are right about Google's future valuation back in 2004. But we also have to think about the comparison here - we are comparing a software and manufacturing company.

Even if we ignore different sector we need to look at the financials. Google dint have much debt. Tesla on the other hand has lots of debt. Their financial leverage is 5.97 which is high.

Then there is also about the interest rate climate. We have seen years of unprecedented low interest rates. Feds now have started to increase it slowly. If it rises too high Tesla's interest obligation will balloon as well. If they are not building cars fast and selling them even faster, they might be a deep hole and hence overvalued.

[jryle70]

I don't have the crystal ball to tell if Tesla's market value is justified, but they are at the forefront of 2 exciting and explosive areas of growth: electric transportation and battery. You only need to count the announcements of established car makers of electric vehicles in recent time to tell how dynamic the market is. They are not compete in a typical stable manufacturing sector.

[lenley]

Absolutely. Also, Tesla doesn't really have the network effects that other industries have (like search). Companies with similar cultural cache are also catching-up like BMW...