why is tesla stock so high compared to other companies

Penny Stock Traders Have Made Huge Profits. Teslas market cap has doubled in the last 12 months to US59bn so its now more than BMWs.

Tesla Ceo Elon Musk Says Stock Price Is Too High Shares Fall

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Now is the time to move. It has a price-to-earnings ratio PE of 1200 meaning that for every one dollar of earnings Tesla enjoys 1200 of market cap. Ad These 5 companies are set for historic price action.

Tesla trades for more than 1000 times historic earnings and 161 times. They want Ford -- and other old-line manufacturers -- to adopt a new business model. Teslas capital expenditure-to-sales ratio is also high at 149 which compares favorably to the sector median of just 26.

Three years ago when Tesla was worth 50 billion the companys board promised Musk a huge grant of stock if he could among other things bolster the companys market. A higher PE ratio makes sense for Tesla because it has vastly more depreciable assets than NVIDIA but even going by the EV-to-EBITDA ratio which strips out depreciation. These 2 companies are almost exactly the same size but.

Overall while growth is expected to remain strong we still think Tesla stock is expensive. The 10 others less the biggest three is 450 billion 1000 550. Its fundamentals dont come close to justifying its price.

Although this value jumped to 473 over the past three months that is still 45 less than the PE ratio measured in October 2020. A rare market phenomena could change everything and theres no telling when it will occur. Tesla Inc NASDAQTSLA is miles ahead of other car manufacturers in the electric vehicle race Morgan.

For years potential competitors kept an eye on Tesla as. Woods prediction would mean Teslas market value easily exceeds 1 trillion within five years nearly 10 times the companys current valuation. Why Is Tesla Stock So High.

Ad Join 500k Active Members Who Follow Our Free Penny Stock Picks. Its making losses of around US2bn on revenues of around US10bn. Far below Tesla Amazon ranked as the company.

Teslas ability to drive environment consciousness by lowering CO2 emissions from manufacturing EVs and challenging 20th-century car manufacturers to do the same is of. It will struggle to sell. Using PE ratio Tesla is dramatically more expensive than other car makers like GM and Ford.

Teslas stock continues to rise to ridiculous heights. At its current price of roughly 840 per share the stock trades at around 155x. Tesla stock price is high simply because they have a less shares outstanding.

The total market cap for Tesla is 52B and 51B for GM. So Teslas one day jump was just under a quarter of that not more than all of it combined. Tesla CEO Elon Musk has built Tesla into one the most powerful brands in the world.

For comparison Fords PE is 2274 while. That means dramatic changes such as. Teslas market capitalization has increased by more than 500 billion in 2020 and the company is now worth about as much as that of the nine largest car companies globally.

Teslas market cap is over 6000 times greater than its 2019.

Tesla S Stock Stands Apart From The Growth Pack Tech Watch