Comment by sosomoxie
11 days ago
Pure logic would dictate that Tesla has a market cap of around $5B. It's actually fraudulent that it's not, and for some reason the SEC allows Musk to lie on every earnings call without repercussion.
11 days ago
Pure logic would dictate that Tesla has a market cap of around $5B. It's actually fraudulent that it's not, and for some reason the SEC allows Musk to lie on every earnings call without repercussion.
A 5B market cap would imply a P/E ratio of 1.3 and a P/FCF ratio of 0.8, which essentially would be saying “this business is only worth approximately what it made last year”. The corresponding multiples for other auto makers are typically in the high single digits. Even if you believed Tesla’s whole business would collapse tomorrow (i.e. revenue goes to zero) book value is ~83B and net cash is ~29B.
Yes, I think that sounds about right.
You may think that sounds right but I can assure you that convincing others that ~$29B of accessible pure cash or ~$83B of equity is really only worth $5B will be a more difficult venture. You can dispute the carrying value of Tesla's assets and liabilities but the cash is cash which is why I included that metric as a baseline. At the end of the day $29B is worth $29B and nothing else.
1 reply →
Seems low on a company that is profitable and consistantly has around a $100B a year in revenue with only $13B in debt...
more like 12b in 2022 and less every years since down 30% in 2025
vw has over 300 billion revenue and way more profit then tesla. still not worth 1/10 of it.
5 billion sounds good for tesla
VW is carrying $221B in debt and just closed their main plant in Germany because BYD is eating them alive.
4 replies →
Welcome to 2026:
Companies routinely, exaggerate, obfuscate and mystify investors. Most of investors don't care. The SEC is a joke.