Re:Tech bubbles are bursting all over the place
by TheDarkestSoul on Friday May 13, 2022 @02:04PM
(#31370728)
Even if that all were true (it's not), Tesla could be the most important and revolutionary car company since Model-T era Ford and _still_ be insanely overvalued. Before their recent stock slide they were worth as much as every other major manufacturer _combined_. Their P/E ratio hovers around 300. Mercedes-Benz hovers around 5.
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Re:Tech bubbles are bursting all over the place
by martindbp on Friday May 13, 2022 @02:21PM
(#31370914)
Teslas forward P/E, which is way more indicative of the future of the company, is 51:
https://finbox.com/NASDAQGS:TSLA/explorer/pe_fwd#:~:text=Tes....
I admit Q2 will be lower than Q1, but Q4 this year will likely see an even lower forward P/E if price remains the same.
Sure, they could be overvalued, I'm just trying to explain why it's valued as it is for those that think it's "insane".
Mercedes hovers around 5 because many investors believe they could go bankrupt if they can't successfully transition to EVs. GM, for example, will very likely go bankrupt (again). Many others as well.