All the cars we've owned for the past 17 years have been second hand Honda Civics. FWIW Teslas aren't exactly mass-market vehicles are they? Somewhat of luxury brand.
Kinda gob smacked at the current valuation of 600x earnings. Does that imply something north of 500% annual growth for about the next decade?
Matt
Tesla are moving towards mass market: Nearly 500k last year, prediction of 1 million for this year, rising rapidly to 10-20 million by 2030.
If one uses traditional valuation metrics then Yes, Tesla looks expensive for an auto maker.
However, Tesla is viewed as a software company, AI neural net maker and trainer, robo taxi maker, green energy car maker, renewable energy generation and storage, potential crypto business, and should they perform as expected the rate of growth of earnings will soon bring the forward p/e down substantially.
Additionally Tesla has a lot of cash on the balance sheet and can make mistakes and write them off, whereas legacy is uniformly in debt with little room to manoeuvre.
The investment case for Tesla has never been based on valuation, but on the belief that it will transform several industries.
It is not a stock for anyone who only feels comfortable with traditional valuation.
Regards,