investing noob wrote:
agip wrote:
it's all about growth...no one expects toyota to grow anywhere near the rate TSLA will grow, so it gets a far smaller PE multiple.
The idea is that TSLA is a new, fast growign company that will find new revenue streams.
Like Amazon did (not just selling books), like Apple did (not just selling hardware).
The Street thinks TSLA will keep growing past just selling new cars.
Tesla was 600bil a few months ago. What has changed between then and now? When Tesla sells 10mil vehicles like Toyota, will it be a ten trillion dollar company?
it's not about car sales
it's trusting that this young company with the great brand name that can attract some of the best minds in the world, and which is led by a genius, will find a way to make more money in ways we don't know yet. Battery packs, charging stations, who knows.
Like how Steve Jobs created new revenue streams for Apple away from computers. Music, phones, watches, etc.
As bezos created amazon web services.
As GE created GE capital. heh.
Think of it as buying shares in the wide-open idea of 'Tesla' rather than buying shares in a car company.