Topic: Tesla now more valuable than Ford

[driv3r]

Hello all,

I saw an article this morning and I was hoping to get some thoughts on it.

A quick google search should yield some results. Tesla closed at $45.47 billion while Ford is worth $45.35 billion.

Is the company overvalued? Or is the hype legit?

Apologies if this is off topic at all.

[Guy]

Not off topic at all. I'm sure it will generate interesting comments! 

[ArticSteve]

You're quoting market capitalization.  Quite useless metric for this comparison.  You'll find that Fords enterprise value is X5 Tesla.

[bye]

Fords enterprise value is X5 Tesla.

Anecdotal :

We drove Ford's before we switched to 100% EV's.   I tried to get a Focus EV here in Canada, but they didn't want to sell me one, that was 4 years ago.   Will never go back.   Have one Tesla S and have reservation on a Model 3.    Ford have lost us permanently as customers.   Tesla is winning us over with fantastic products and service.

Yes, Tesla is overvalued, as Elon musk has said, but then again, Elon keeps buying in even at current prices to maintain his share percentage on every offering so far.

[quadzilla]

Have one Tesla S and have reservation on a Model 3.    Ford have lost us permanently as customers.   Tesla is winning us over with fantastic products and service.

Is this new? I don't think you told us this before. 

[CanuckS2K]

Have one Tesla S and have reservation on a Model 3.    Ford have lost us permanently as customers.   Tesla is winning us over with fantastic products and service.

Is this new? I don't think you told us this before. 

I dunno Derek, I don't recall him telling us that before here on the forum.   

[mmret]

Have one Tesla S and have reservation on a Model 3.    Ford have lost us permanently as customers.   Tesla is winning us over with fantastic products and service.

Is this new? I don't think you told us this before. 

I dunno Derek, I don't recall him telling us that before here on the forum.    [emoji14]

For some reason this makes me think about what the right pressure is to run Hercules G5000Z tires at. Especially the 215/50/17 size.

Sent from my SM-G930W8 using Tapatalk

[rrocket]

What's Tesla profitability vs Ford?

[OliverD]

What's Tesla profitability vs Ford?

Not really relevant when you're comparing an established company with a growth company. Tesla's market cap is high because their revenue is growing rapidly, not because they're making a profit.

[rrocket]

What's Tesla profitability vs Ford?

Not really relevant when you're comparing an established company with a growth company. Tesla's market cap is high because their revenue is growing rapidly, not because they're making a profit.

You can have high revenue but still fail.

See GM just before bankruptcy. They were also number one in worldwide sales at the time too.  But none of that matters if you aren't profitable and lose more than you make.

[OliverD]

What's Tesla profitability vs Ford?

Not really relevant when you're comparing an established company with a growth company. Tesla's market cap is high because their revenue is growing rapidly, not because they're making a profit.

You can have high revenue but still fail.

See GM just before bankruptcy. They were also number one in worldwide sales at the time too.  But none of that matters if you aren't profitable and lose more than you make.

I'm not talking about high revenue, I'm talking about revenue growth. Growth companies sacrifice profits to grow their revenue. I've worked for two different public companies that are growing rapidly - 30%+ revenue increases YoY. Both companies aimed to make very small profits each quarter. The market doesn't care if there are no profits as long as the revenue growth continues as projected. Eventually if the revenue growth slows then making a profit becomes a higher priority.

Tesla is in the growth phase. Chasing profits doesn't make sense for them.

[ArticSteve]

Tesla has had negative free cash flow for 5 years.  2016 was (1.56 B)   

Whatever, where Tesla ends up will be the business story of the 21st century.  So crazy.

[EV-Light]

Tesla has had negative free cash flow for 5 years.  2016 was (1.56 B)   

Whatever, where Tesla ends up will be the business story of the 21st century.  So crazy.

I am wondering what happens when Ellon Musk runs out of others people cash....




Sent from my iPhone using Tapatalk

[tooscoops]

is that last green section where they have everyone's deposit on a car they haven't made yet? actually a serious question... or are they actually turning a profit somewhere and cash is coming in?

[rrocket]

is that last green section where they have everyone's deposit on a car they haven't made yet? actually a serious question... or are they actually turning a profit somewhere and cash is coming in?

No.  That's when they sold emission credits IIRC.

[bye]

You can have high revenue but still fail.
See GM just before bankruptcy.

Comparing the Tesla product line, and growth to GM is a real leap.   Keep hoping for TSLA to fail while I'll keep buying their products, I wonder which of us will be enjoying another fantastic Tesla product a year from now, and who will be eating crow?

[Fobroader]

Those eating crow will be those that put a hefty down payment on a non existent product.

[rrocket]

Comparing the Tesla product line, and growth to GM is a real leap.   

Is it?  Both highly valued companies.  Both seen as leaders in their respective industry.  Both able to sell as many vehicles as they could. Both sales leaders. Both having revenues.  And despite all that, both lost money hand over fist.  S

Same. 

Well except for the fact that GM actually has made money on their cars.

[rrocket]

Lutz on Tesla.   

http://www.thetruthaboutcars.com/2017/03/old-man-lutz-weighs-donald-trump-elon-musk-state-american-auto-industry/

[OliverD]

Comparing the Tesla product line, and growth to GM is a real leap.   

Is it?  Both highly valued companies.  Both seen as leaders in their respective industry.  Both able to sell as many vehicles as they could. Both sales leaders. Both having revenues.  And despite all that, both lost money hand over fist.  S

Same. 

Well except for the fact that GM actually has made money on their cars.

Both nearly doubled sales year over year. Oh wait.