[refurb]

Because stock prices reflect future earnings, not past earnings.

Basically, people buying TSLA stock believe future sales will be larger than Toyota.

[xkjkls]

Future Earnings + Current net assets.

I have a hard time seeing how future earnings of Tesla even exceeds the liquidation value of Toyota, given the stock has never made earnings a year in its life.

[adventured]

You're contradicting yourself in the skepticism.

You recognize the valuation premise is based on expectations of future results, then you nail Tesla for its past results (no history of annual profit) for a supporting argument ("given the stock has never...").

[xkjkls]

You do realize that when Tesla was valued at $300 in 2017, the projections for its revenue for 2020 were $38 billion and profit of $5 billion? They aren’t even going to reach a light year from that, yet the stock is supposedly now $1000.

[brentonator]

Somebody needs some https://shop.tesla.com/product/tesla-short-shorts

[woah]

Many of them believe that Tesla stock will somehow get them a piece of spacex. Many more are just following the price.

[ksec]

I have seen that floating around. Is there any reason why this is being so? They are just two different companies belong mostly to the same person.

Why would owning Tesla gets your SpaceX?

[Spinosaurus]

It doesn't, at all. I've heard suggestions that great news coming out of SpaceX does impact Tesla, but not the other way around. Plus, SpaceX isn't a public company.

[xkjkls]

And they would have to pay market rates for that. There's no upside there.

[aeternum]

Not just larger than Toyota. Larger than Toyota, Panasonic (batteries), FirstSolar (and other solar energy companies), Waymo (since they are arguably further ahead on self-driving), etc.

[buboard]

> people buying TSLA stock believe future sales will be larger than Toyota

... until the day they sell