Toyota makes several of the top selling cars on earth. It sells industrial vehicles. It sells a successful line of trucks. It sells the top hybrid. They made 280 billion dollars last year, with a gross profit of 53 billion.
Tesla makes like 2 cars. They sometimes sell battery packs but that's about it. This year apparently they're delivering some semis but it's unclear. They made 50 billion dollars last year, grossing 13 billion in profit.
Toyotas market cap is still half of Tesla's market cap.
The question shouldn't be "why is Tesla doing so bad?", It should be "why is this tiny company doing so good?"
And the answer is that it's a debt fueled asset bubble that isn't even close to deflating yet. By my measure, Tesla should be considerably less valuable than Toyota.
Tesla makes like 2 cars. They sometimes sell battery packs but that's about it. This year apparently they're delivering some semis but it's unclear. They made 50 billion dollars last year, grossing 13 billion in profit.
Toyotas market cap is still half of Tesla's market cap.
The question shouldn't be "why is Tesla doing so bad?", It should be "why is this tiny company doing so good?"
And the answer is that it's a debt fueled asset bubble that isn't even close to deflating yet. By my measure, Tesla should be considerably less valuable than Toyota.
Comparing PE ratios for similar companies maybe doesn't tell the whole story, but it definitely helps point you in the right direction. Tesla doesn't have anything special about it that supports its market cap.
I think you're right, to the extent that it is considered a tech company for the purposes of investing in a tech bubble. Thing is, the tech bubble was only caused by excessive liquidity in the system, which we're seeing now.
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Unfortunately, we have an entire generation of people who don't know what a sane market looks like.