With a valuation of around $400 billion, it immediately joins the index's 10 largest holdings.
The upshot of this momentous event is twofold. First, the short case against Tesla, already shot after the company went on an epic rally at the start of 2020, is now hopeless. Far more investors are going to be passively long Tesla's stock simply because index funds will buy the S&P, and Tesla with it.
Of course, it's also safe to borrow some of their arguments and take a look at how comically overvalued Tesla currently is, at $500 per share . GM CEO Mary Barra has laid out an ambitious electric strategy.Here's why Tesla is thought to be worth more than General Motors, Ford, Toyota, and the VW Group combined: It isn't a mere car company. It's creating a new industry in which electric vehicles, solar panels, and sustainable energy storage are simply early aspects.
Taking a look at the auto sector, share prices have mostly been flat or down, with the exception of boutique names such as Ferrari. Until the COVID-19 pandemic hit, General Motors and Ford had underperformed the S&P 500 for years, but they both paid out handsome dividends. At any rate, we find ourselves now in a weird place with Tesla and the stock market. We know that it be worth $400 billion, but the price-discovery mechanism in the marketplace, imperfect though it might be, has concluded that it is. So a rational analysis of the business that undergirds the stock is a waste of time: The logical conclusion has been completely invalidated by the fever dream of growth.
I don't think so. Even automakers with serious EV goals, such as GM and VW, are really just aiming to replace their internal-combustion engines with electric drivetrains. Ultimately, they want to retain existing customers and protect against the Armageddon scenario of China's huge market becoming EV-dominated in the next few decades.
How about you write an article about how close to death ICE automakers are as they try to eek out the last pennies of profit from their dying industry. 🤷🏻♂️
3.1m fools...
🤡🤡🤡
Yes, Tesla trades at a P/E of an estimated 2020 EPS of 217. However, as we all know, the stock market doesn’t valuate present worth, but future potential. My view on that potential: EPS of close to 30 in 2025 = 18.4 at present value = P/E 26.6 at current stock price. Now what?
Now that BusinessInsider has come up with this bs, it’s fair game to talk about how ridiculously overvalued the site is.
They've been fair game to the media ever since Tesla existed.
Tesla the leader in battery technology, electric cars, solar panels, power walls, and more is overvalued?
all you have to do to win your own argument here, is set up your own metric, it's all bears do, some do metrics better than others, but in the end, you're just rigging the argument. Tesla has unlimited possibilities, and it's interesting how this is going to sneak up on ppl.
All the FUD directed at Tesla, partly as they don't advertise YET. Media should consider how big Tesla will become, that they might advertise/info campaign & hope they don't hold grudges. Media & journos, be smart and support the mission. Your reps, $$ & future depend on it.
According to the author's logic he was buying Nokia shares back in 2010, based on phone sales & revenue multiples, not the growth company Apple, I presume? Infallible investment logic!
Business insider is a joke.
all you have to do to win your own argument here, it set up your own metric, it's all bears do, some do metrics better than others, but in the end, you're just rigging the argument. Tesla has unlimited possibilities, and it's interesting how this is going to sneak up on ppl.
Trying to drive down the price for the index funds? Nope. We’re holding.
It’s valued at what the market is willing to pay, the traditional value models need to be adjusted or forgotten
$tsla is still undervalued I hope ppl sell it so I can acquire shares at a lower price! Thx to all the short sellers and fudsters like business “insider” for keeping the stonk so low for so long all those years! Gave me a chance to acquire many 🪑!!!
😂 Another clueless article from Business Outsider. What a joke! BTW, what happened to lopezlinette ? Did she finally give up after years of bashing Tesla?
BI & tons more have been saying Tesla is overvalued their entire existence. The idea that it's fair game now is just more noise for meaningless headlines. Anyone taking those headlines serious missed out on massive gains because they're were dumb enough to believe you
I can’t be the only one thinking this, feel like I have gone mad😂😂 thanks for letting me know that Im not
EveryoneSaysHi1 Tesla getting included in that Index is an enormous insult to serious and non fraudelent companies in the Index. It turned the whole index into the 'Monty Python Fraud Index' and a laughing stock.
Not really
I think Tesla will uplift the stock of the traditional big auto manufacturers. Not sink his own value. Trump in the rear window will stimulate solar expansion. TSLA definitely over valued.
It's fair game to discuss how much of an accounting fraud it is you mean
Totally. I remember when the same thing was said before it 10X. Stfu.
Insanely over valued
From one of the Market Wizards: You cannot put valuation on the things we trade.
Bring on the short squeeze!
You watch what you say about my baby!
mattdebord yes it is fair game Ford lover. I don’t know how stupid someone has to be to pay to read ur dumpster fire. 💩
*undervalued
It's like I'm hearing the dino's think: “What the hell happened, why are we extinct?” Tesla’s unbeatable position is entirely due to Tesla's superior leadership and employees, Tesla's next level technology and in particular: Tesla's unparalleled unprecedented speed of innovation!
SP500 is an idiot :) :D :D
Oh were you holding back criticism?! 🤣
Their PE ratio is over 100
Dou You still haven't see the future, ehh, just take your Money out of petróleo and You Will see why, Tesla and nio are going to be more a expensive than Google in a couple of years.
Well can't read the article, and no reason, so guess his is rediculously overestimating own abilities
It's only 1002x P/E And over 15x its yearly sales! UGH WHY DO PEOPLE KEEP SAYING ITS OVERVALUED 🤦♂️🤦♂️🤨
It’s always fair game, but definitely should have more scrutiny...especially from the gov.
If you take a short position Tesla not only lost billions of dollars but you missed the biggest opportunity of making money, Business insider has been doing hit articles on Tesla forever luckily nobody believes you except hand full of idiots,
Fair game to look like you have no idea how to value a company has complex as $TSLA - by all means go ahead and make bad takes that we can all laugh at later.
nice title. I just saw a space rocket fly a satellite and land back down in 10 minutes. oh, Tesla is over valued? what a bunch of idiots.
juanburgos They make Rockets, space ships and electric cars. They are cool to me.
Puts didn’t work out?
I’m not sure if $TSLA deserves to be compared to Enron... But difficult to find a worst example 🙆🏻♂️
Tesla stock too low imo. Bears gonna stay made and so are the “analyst”.
Nope. We have until the 21st to run this up to a $1T valuation. Passive investors deserve to be punished
rvnsibirwa Short TESLA
Short the Company 😎
this is terrible news
Somebody shorted Tesla and is pretty mad about it
With that being said, let's use that extra $$$ to put up coils all over the World so that people do not have to die from lack of power! Please! I see videos of people who know how they work, so it's not like you don't have anyone to do it. I'm sure they wouldn't mind making $$$.
tesla 300p jan/22
LOL
whaaat
LOL