Quote:
Originally Posted by Hops
In December Tesla's market capitalization is higher than the 9 largest automakers. It really doesn't make sense to me, especially now that I read they are losing marketshare in europe with competition from VW.
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stocks are about the future as much as they are about the current.
Tesla owns many patents around technology that doesn't necessarily have to be used in tesla manufactured vehicles.
They also have a lot of R&D going into future battery tech that could be utilized by other if not all other manufacturers.
Then there is their self driving R&D which could be licensed by others.
In some sense, tesla manufactured vehicles could be seen as platforms for all of their patents rather than something intended to become a long term major vehicle manufacturer (though there is no reason to think they'll stop).
It's not hard to see why their stock price is not reflecting their current profitability when considering the above. in the end though, you can't ignore the investor factor since there's no rule that says they have to invest logically - but the big investors are looking at their company financials a lot closer than any armchair guy is and apparently they like what they see.