Tesla is now worth more than the next 24 largest Auto manufactureres combined

companiesmarketcap.com

3 pointsChumpGPT4 comments

Approx 180 Billion more and they will be worth more than the entire world auto industry combined.

Tesla builds approx 2 million vehicles a year.

Worldwide production is approx 100 million a year.

> Tesla builds approx 2 million vehicles a year. Worldwide production is approx 100 million a year.

Unless the world enters wars of attrition, these numbers aren't relevant.

Tesla is the only non-Chinese manufacturer to have figured out how to profitably manufacture the powertrain of the future. That gives them terminal value [1]. ICE manufacturers, on the other hand, have residual value [2] plus an option on a business with terminal value.

(Caveat: none of this is stock advice. I'm not saying Tesla's valuation is right. I'm just saying this popular argument for why Tesla is overvalued doesn't hold.)

[1] https://en.wikipedia.org/wiki/Terminal_value_(finance)

[2] https://en.wikipedia.org/wiki/Residual_value

it doesnt hold until it does...2% market share, 49% market valuation...we are pretty close

I remember people made this argument in 2017-2020 for why it was overvalued or to somehow show that is was not sustainable, glad I ignored them.

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