What Does THIS Tell You? Tesla Now Worth More Than Daimler

Market makers playing to what's hot among greenies and other investors, but if I could own 100% of either company it would be Daimler.

Opposite for me.. MB has hit their Apex while Tesla is just getting started.

@SanCarlosAsshatterDriver #BS

The next few years will tell the real story once all these other car companies enter the EV market. I think Porsche will make a dent on Tesla model s sales. Not really sure who will compete with the model 3 but trust me, this level is where most of the people looking at purchasing EVs will start looking and auto companies will heavily invest in order to have a car that can compete and be profitable in order to remain alive as a car manufacturer

Agree and when there is head to head reviews in magazines and by word of mouth the ones with the best qualities and quality will take greatest market shares. Tesla may prevail though to date it has had the playing field pretty much to its self.

That is not what the market says, and that is where worth is dictated.

Actually - SanJose - The market does not establish what a company is worth - it never has. It does determine what investors think is stock is worth - but When companies are taken private or are bought out - it is almost always true that the price of the company is far higher than what the stock sold for at closing on any given day. If you don't believe me - try to buy them.

The fact is - based on ASSETS alone - Diamler/Benz is worth far more than TEsla is - and would sell for far more in a buyout. Diamler has assets in many different parts of the market for Vehicles around the world - and handily outsells Tesla in both number of vehicles and Total revenue - which is how the worth of a company is actually determined.

SanJoseDriver: Market valuation does not indicate what a company is worth. It is simply a calculation of Number of Outstanding Shares x Last Traded Price = Market Capitalization.

In other words, the stock market reflects what folks are willing to pay for shares. Lots of folks with an Etrade account, and what they believe of Tesla, has nothing to do with the company's actual net worth, or their viability.

Valuation (for a buyout of the whole company) is ALWAYS based on multiples of free cash flow (EBITDA). The market caps of established automakers reflect various (but similar) multiples of their free cash flow from operations.

Tesla free cash flow is minimal, so the value attributed to the stock is based purely on future optimism and the self-perpetuating feedback loop created when people (SJD) breath their own air and ignore that there is really no consistent cash flow from operations at Tesla, to speak of.

Let's see what the stock price is at once free cash flow for CY 2018 is reported.

The market is never wrong until it is.

ENRON and NORTEL used to be worth a mountain of money at one time, too. Remember when Blackberry was trading at over $100 in 2008?

Things change.

Also recall that in recent weeks, Musk himself confessed that Tesla was on the verge of "not making it" in recent months. That's Political Correctness for going bankrupt. Yeah, they're that close to the line.

Valuation is not worth. Valuation is the asking price in a sale that you bargain down from if you want to buy. Anyone who has ever acquired a business knows that (1) you never trust the valuation and (2) you sure as hell do not pay anything near that amount to acquire the business.

Call me old school but I was taught that a company is only worth a multiple of the earnings (tech 30X, mfg 7-10X etc). If that is the case then Tesla has no earnings (only debt) and shouldn't be worth jack shit???

This same hype and bs has inflated all the Canadian cannabis companies to unrealistic market valuations as well that has made my mom over $500K on a $100K initial investment with 0 investment experience or knowledge. I told her to take the money and run to another market niche or investment vehicle. I do regret not buy Tesla stock years ago and riding out this crazy train...

Tesla's valuation is 100% an "Emperor's New Clothes" kind of thing.

8 guys in here posting negative comments in every Tesla article, then upvoting each other.

I'd say it's sad and pathetic, but I actually find it to be a fascinating psychological study watching people who have been wrong in every single prediction they've made over the last 3-4 years continuing to confidently type the same nonsense, unfazed.

Talk about hypocrisy! That ganging up EXACTLY is exactly what you and your cronies do to stifle the free speech of anyone you don't like. You are a complete idiot for whining about something that YOU do to bully others. #unbelievable If you're going to be an ass--like you most certainly are--then OWN IT.

Sounds like something a sore loser would say. Did Tesla go bankrupt in 2016, 17, 18?... um no. Did they turn a profit? Yes. Did they get Model 3 deliveries above 5k/week, Yes... etc., etc.

And honestly, the naysayers have always seemed like the bullies here. Sucks when people crap on an American company and root for sending money oversees.

— MDarringer

Easy there. Free speech is the undeniable and absolute Right of the Left and merely "Privilege" when it comes to conservatives or everyone else. Didn't you get the rulebook?

Talk about hypocrisy! That ganging up EXACTLY is exactly what you and your cronies do to stifle the free speech of anyone you don't like.

— MDarringer
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I'm not sure where to start:

Ganging up? I'm one person posting my own thoughts.

Not sure who my "cronies" are. I don't know any of these other guys.

And I'm not stifling anyone's free speech, I'm merely exercising my own.