Tuesday, February 4, 2020

The Amazing Tesla Run-Up

The big story in the stock market this week has been Tesla, which has added $60 billion in market cap over the past week, which by itself is higher than the value of companies like Target and John Deere. In fact, Tesla now has a higher market cap than General Motors, Ford, and Fiat Chrysler combined.

Is this rational? Consider that the revenue for GM, Ford and Fiat Chrysler totals $620 billion over past year. Meanwhile, Tesla has had revenue of $25 billion over that same time frame.

One more comparison: Tesla's market cap is now larger than that of McDonald's. McDonald's had more than $6 billion in net income last year, while Tesla had a net loss of $862 million.

No comments:

Post a Comment