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Fundamental Valuation

$Ford Motor (F.US)$ $General Motors (GM.US)$ $Tesla (TSLA.US)$ Although Ford and GM have nearly an identical market cap, Tesla is WAY out of whack. Their relative P/E reflects this. At GM’s P/E, Tesla shares would be $35. At Ford P/E Tesla shares would be 18.91 each
Fundamental Valuation
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  • PocketChange : Ford has been around so long it has a single letter as it’s ticker. Those high PEs will be the first to take a beating but Ford and GM are not in the same Phase of business as TSLA. Extreme growth, plus disrupting an entire 100 year old industry is the reason for the rediculous p/e.  the investors expectation of future growth & future market share of the automobile industry is reason enough for the high valuation. Netflix had like a 400 PE when it’s eps. sat at 0 or .01 same with Amazon, or any other unicorn. The whales play the long game

  • RescuePetsRock : i have never under the Tesla PE.and that's why I have only traded and not held it. I have made money trading Tesla BUT i could have made much more if i had held, i just could not justify what we're at times among highest PE of any company. and car companies tend to have lower PE as they are low margin industries. i don't dislike Tesla as a company but i still fail to see how it deserves a PE significantly higher than any other car company.

  • Mike Hunt OP RescuePetsRock : I’m with you. One of the things that people often make the mistake of doing is thinking that just because you think something is overvalued or a bubble means you can’t go long on it if you believe you can make money. I have made fantastic returns being long on Tesla and believing it’s totally overvalued. Those two things are not mutually exclusive

  • RescuePetsRock : i agree it is a great company. and musk achieved things most CEOs can't like building factories in weeks in China, negotiating building or doing ANYTHING in California - having lived there - is an achievement, and he does that too. excellent product but i have felt the company is grossly overvalued since about 2017, the market has disagreed but i just have not felt comfortable holding for any length of time given the valuations.

  • RescuePetsRock : that's my same feeling on the trio of AMC/BBBY/GME i can see cases for all of those but the fly up in valuation due to meme activity makes them all uninvestable if at times tradable