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bryanlarsen

Tesla has a P/E ratio of 50 and annual earnings growth rate of 75%. It's hard to argue that's overvalued.

Due to the reduction in CO2, NOx and SOx, it is estimated that Tesla has prevented over 100,000 premature deaths.

OTOH, Google & Meta are advertising companies. I question their utility to the world.

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> Tesla has a P/E ratio of 50 and annual earnings growth rate of 75%. It's hard to argue that's overvalued.

VW Group has had a 5 year maximum P/E ratio of 20.69; for Stellantis it's 4.11 (but they're less than 2 years old). True that Tesla is seeing some very good revenue growth, 51% for 2022 compared to 2021. But that revenue is at $86 billion, meanwhile VW Group are at $307 billion. It is flat out ridiculous how overpriced Tesla are, nothing justifies them having a higher market cap than say VW Group.

From my very quick glance at the numbers, they make roughly the same amount of profit. From that starting point, add in Tesla's much more rapid growth. Then add in another factor for VW having products optimized for a rapidly-disappearing era.

TSLA is still overhyped, but I would never invest in VW, unless the stock takes a massive dive, or they spin out Porsche.

Volkswagen has $185B in debt. When your debt is a lot larger then your market cap the ratios get funny. As an enterprise, VW has a lot of value. But almost all of that goes towards covering the debt rather than providing shareholder value.

As a side note for people wondering why they have so much debt, it's mostly from their financing department. The list of most indebted companies is comprised of mostly car makers for that reason: VW, Ford, Toyota and BMW make up half the top 8.

So their debt is almost more like bonds (E: maybe bank loan is a better equivalent) than what most people would think of as debt?

Like, if they stopped selling cars today they would theoretically recoup all of that debt once all the cars they've sold have been fully paid off via financing.

Yes, in a lot of way, modern car companies are actually banks which happen to manufacture cars.

They also have quite a lot of assets though. The shareholder equity is around $190B (for Tesla it's around $45B).

> Due to the reduction in CO2, NOx and SOx, it is estimated that Tesla has prevented over 100,000 premature deaths.

Does the math include the deaths from Tesla selling the permission to pollute to other carmakers? https://www.cnbc.com/2021/05/18/tesla-electric-vehicle-regul...

> OTOH, Google & Meta are advertising companies. I question their utility to the world.

True, advertising is a huge part of Google and Facebook. However they are so ubiquitous and embedded in our lives via the the Google search engine, WhatsApp, Instagram, YouTube... that you seem to only remember the unpleasant side which is advertising.

Haven't you run thousands of Google searches by now? Sent thousands of WhatsApp messages (i) ? Seen thousands of YouTube videos? Surely that has given you tremendous utility. You may argue that you find the the way Facebook/Google are making money as unattractive, but surely these companies have provided net positive utility to you and the world?

They are also some lovely open source projects that have come out of these companies that are being used by the next wave of startups!

(i) In some countries WhatApps is not dominant so this may not describe you.

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