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by mrich
612 days ago
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Tesla at a forward P/E of 80 is massively overvalued as a car company. You can get Mercedes or BMW at a P/E of 6, with a 9% yield. Sure, the EV market is still growing, but Tesla is not the only player. All brands now have EVs, there are both cheaper and more luxurious Chinese EVs, that's some massive competition. The only reasons Tesla could be valued differently are FSD and Robotics, which Musk and Tesla-friendly analysts are heavily pushing. Since Musk has made massive loans against his Tesla stake you can expect that he will keep highlighting those narratives as well. A revaluation of the stock to sane levels would certainly cause him some financial difficulties. |
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Maybe a bit of that but investors are more buying into Musk's past track record with Tesla and SpaceX which has been pretty good really.