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In response to
"Tesla has blown past Facebook to become the 5th largest company in the US. $960B market cap...Musk now worth $250 Billion
-- (link)"
by
decline
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The earnings report was especially good. Margin on vehicles increased as average vehicle price decreased
Posted by
TWuG
Oct 25 '21, 08:24
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And they are still supply constrained. Demand is so high that new orders are up to six months for delivery.
Two new factories come on line next year to double current production capacity, one in Germany to serve Europe, one in Texas to serve North America.
They were the only (or near enough) automaker to see increases in production and deliveries during the last year.
Is the stock valuation ahead of the company's current value? Yes. But it's also going to reach that value. Its competitors are losing future value daily.
"Competition is coming" but never seems to arrive. That also implies that current autos aren't competition and that is very true.
There will come a point when the stock price more accurately reflects the company's then current value, but today isn't that day and I think it's likely to be years away yet, with very little downside risk between now and then.
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