In fact Rolex, Ferrari, Fender etc. aren't valued at 680 billions. They are valued like status symbol companies . Again like Tiffany & CO.
As they should be, Musk convinced people that Tesla will deliver 'Standard Oil-esque type quality of life jump in the life of the avg. citizen.
Instead it's just a Ferrari made in Silicon Valley. When people will wake up it's gonna hurt many people who believed in this dream, which was more a mirage tbh.
It’s not super controversial that Tesla is likely overvalued, but shareholders generally still have a reasonable expectation of upside on new shares purchased so they continue to buy. I’d hope most of the qualified shareholders understand those returns are coming from speculation rather than valuation.
“Silicon Valley” seems inaccurate, most Tesla employees are in Nevada, Texas and China.
Also you talked about “Elons companies”, not just Tesla. The only company I can think of that maybe hadn’t been delivering value to both customers and shareholders is SolarCity. It’s acquisition was super sketchy but it no longer exists in any case.
No, for a company that has reached the status of top 5 most valuable it isn't unreasonable to ask for concrete quality of life improvement for most people.
Moderna and BioNtech aren't even in the top500 and yet delivered quality of life on a global scale by de-facto ending the Covid pandemic
Neither has Ferrari or Rolex but that doesn't make them failures. Most of Musk's companies deliver good value to customer, just not cash flow profits from revenue to the companies themselves. They do somehow still deliver profit to shareholders via stock price movements though. It's not clear if Tesla will ever achieve long-term cash flow solvency but for now most customers are happy, and most shareholders are happy.
SpaceX seems like it won't be super difficult to achieve long-term positive cash flow. They're dumping tons of cash into Starship R&D but the expected returns are great. There really isn't any competition knocking on their door so they'll have at least a decade of uncontested pricing/margin dominance.