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Comment by hef19898 | Hacker News Reader

hef19898

Because Teslas market gap is based on the assumption that it is a tech company. This assumption is, basically, only FSD and Musks image as a tech genious. And a lot relies on Teslas valuation, including for a time SpaceX funding.

Officially announcing that FSD is a dead end takes allnof that away, and Tesla might very well be valuated as car company (which it is). And that share price adjustment could, or will, be a very serious problem Musk and his enterprises.

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> Teslas market gap is based on the assumption that it is a tech company. This assumption is, basically, only FSD

Energy. Batteries. Charging network. Top selling vehicles (Model Y is best selling car worldwide)…

Energy is a tiny part of Tesla. Auto revenue was $19B last quarter, energy and storage was $1.5B.

Yes, which is why I also said they sell the #1 selling car in the world. I was responding to someone who said their valuation is based on FSD.

There was a time VW sold more cars in a year then Tesla did in its entire history (they still do by the way, a lot more), had the best selling car in the world, the VW Golf, for years in a row, was profitable, on its way to surpase Toyota as the biggest car manufacturer by units sold and had nowhere near the multiples in the valuation that Tesla has.

So no, having the best selling car is by no means a reason Tesla share prices are where they are.

Toyota has four of the top ten selling cars and is worth $290B. Tesla has two and is worth $792B. Tesla the carmaker is a valuable company but not more than Toyota.

You could make the argument a few years ago that Tesla was only electric car maker and would capture the market as it grew. But now lots of companies make electric cars. Electric cars are booming, Tesla is growing fast, but they are losing market share.

That's just rubbish speculation on your part. All evidence points to FSD having a very marginal effect on Tesla's market cap. The market has already discounted it as nothing more than a driver assist system.

Most of Tesla's valuation is easily attributable to the fact they sell a ton of cars, with very high profit margins, and are on track to sell even more in the future.

There are nicer ways to challenge the GP's argument.

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