Quote:
Originally Posted by GGG
The risk in that is people start to value you like a car company instead of a tech company and look at earnings rather than future growth.
When you buy a car company you are buying a brand name and a supply chain. Would those things have value for Tesla that they can leverage
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Well there are some harsh realities that Tesla and Tesla shareholders will face. Even valued as Apple, they’ve got a lot of issues when it comes to valuation. If you contrast them to Google, Amazon or companies like that and their growth, it’s not a pretty comparison for Tesla.
But even if you give Tesla the fullest benefit of the doubt, and all the market share, profit margins and everything else that Apple has today, they’re still a questionable value. That’s not just saying “I’m not sure they can make it”; it’s saying “let’s assume that’s all overcome, the math is still questionable at best.”
That scenario is essentially saying Tesla can overcome the homogeneities of phones as opposed to cars, the profit margin Apple makes off apps and music as opposed to where Tesla is earning theirs, the fact that the Apple margins are about 3x companies like Toyota and VW, and the list goes on. Assuming they’re successful in all of that, they could well be still overvalued at todays price…and that’s really saying something.