Can someone explain the overvaluation of Tesla?


What has caused the recent (past two years) spike in Tesla? I understand they've improved production and steadily increased earnings. But does that really justify the price? To compare with another company, in their last annual reports

– Ford reported 17.9B in net income. Their current valuation is 62.16B.

– Tesla reported 5.6B in net income. Their current valuation is 1.01T.

Ford is trading at 3.5x earnings. Tesla is trading at 180x earnings. Why?


Comments

Leave a Reply

Your email address will not be published. Required fields are marked *