Comment by majormajor
25 days ago
> Does this really hold when Tesla has a considerably higher valuation?
> Tesla is sitting at an egregious 30x market cap of Ford. If anything... I'd expect them to have sales targets that are ~30x the size of Ford.
It almost holds BECAUSE of that. Tesla's valuation has been wildly detached from its sales numbers for years, so having a poorly-selling Cybertruck doesn't really matter.
But admitting that a high-end high-profile product was a big failure, on the other hand, might be much more undesirable for the company whose valuation depends on vibes vs sales.
("Should" that be true, though? Well, that's a different question. ;) )
At some point, reality does re-assert itself.
I agree that Tesla has incentives to mislead with continued announcements about how great everything is (while the board/musk continue to dump their stock as fast as they legally can...).
But eventually... people are going to want their money out of this pie, and it clearly can't provide.
My personal opinion is that Tesla is now Enron 2.0 - and at some point we'll see a similar collapse, on a larger scale. But who knows if enough of the regulatory framework in the US will survive to actually slap them once it happens. I'm not super optimistic.