| > In addition to automake Tesla is in business of battery, AI, solar panel etc business, they are vertically integrated and I would say that why they are far ahead of other automakers and hence market cap bigger than other auto makers. It really doesn't matter. The value of a battery business, the value of a solar panel business - are tiny compared to Tesla's current valuation. The world's #4 battery maker is Panasonic, and their entire business is only worth $20B. The world's #2 battery maker is LG Chem and their entire business is only worth $36B. And both Panasonic and LG Chem do a whole heck of a lot more than make batteries. The second-biggest solar company in the world, Canadian Solar, has $3.2B in revenue and a market cap of $1.6B. So if we staple these together: - Valuing Tesla like Toyota gets us $20B. - Adding in the world's #2 battery maker plus the entire rest of their chemical business get us $36B. - Adding in the worlds #2 solar company gets us $1.6B. That's $57.6B market cap vs Tesla's $500B. So another 90% downside to fair valuation assuming they're able to become as big in batteries as LG Chem and as big in solar as Canadian Solar. "Vibes" don't make a $500B valuation target in 4% interest rate market. Sorry. |
Tesla last year net profit: $5.5b; last quarter net profit: $3.3b.
Toyota last year net profit: $25b; last quarter net profit: $3.1b.
Toyota market cap: $200b
If you value Tesla based on annual profits, entirely ignoring realized and unrealized growth, They'd still have 23% valuation, $46b.
If you value Tesla based on quarterly profits, ignoring unrealized growth trajectory, they'd have similar valuation, $200b.