Quote:
Originally Posted by New Era
I'm not that surprised you don't get the point. Market cap is a very good indicator of investor confidence, and how well they think the company is going to perform in the foreseeable future. The fact the Tesla does have such a high market cap is a good indicator of where people see not just the fortunes of Tesla going, but the fortunes of the whole auto industry. The days of the combustion engine being under the hood of most cars is coming to an end. Alberta needs to find a new market for its fossil fuels.
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Oh, I got the point. At the same time, there are weed companies with market caps well over $1 billion because of a hype bubble.
More specifically, there are a lot of reasons to be bullish on Tesla. But that doesn't change the fact that Tesla currently holds only about 30% of the EV market, which is itself only 1% of car sales. So when someone scoffs at a prediction for mass adoption of EV, pointing out investor hype for a company with less than one third of one percent market share doesn't actually defeat that claim.