Tesla, Engineer, Mr Market discussed on Tesla Daily: Tesla News & Analysis


I wanted to just sort of get your thoughts on this because I think you know this perspective or this this particular metric in isolation to me isn't all that particularly meaningful us are wanted to you just sort of get your take on why Joseph Start off with this and then get sort of my thoughts as well. Yeah, we're just sort of a level center to get a sense of how rich the expectations are and in just to give some perspective our approach valuation is is as I say, tomato analysts. Would you rather be a fortune teller or critic before to tell her and we see Mr Market or the stock market is a fortune teller. Here, she is giving us a price every day, and what we do new constructs is reverse engineer what the future cash flows, the revenue, the margins, the capital efficiency, the business, all that we reverse engineer with those need to be to justify the price and so. What we like to do is kind of begin be objective perspective on evaluation is and that's what we see in this chart like there's a big disconnect. It's not to say that Tesla can't achieve these expectations but for right now, there's a lot of credit given to what the company will do in the future. Sure and I think you know even the most stringent of decibels wouldn't argue that you know it's obviously not based on the prophet flow today or the cash flow today it's based on the growth opportunity for the future and that's why you see the premium valuation and things like that One thing that I did want to add to this. So it looks like on this chart you have Fiat Chrysler Ford GM Honda. Toyota. there are other automakers that are actually priced higher per card than Tesla's your. So sorry, for example, their market cap is around forty, nine billion dollars and they sold you know ten thousand cars last year. So if compare that to Tesla on this chart, you know Tesla is eight,.

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