Tesla's Market Value Now Exceeds GM And Ford Combined

"Irrational exuberance"

-Alan Greenspan

It will end badly, just like so many examples of dot com burst

Hope it works out for them.

Bubble will burst eventually.

Ya'll have been saying the same thing for how many years now??

EVentually - the EV market will define itself - and then the ability to make ev's at a profit without government subsidies will show up. Even Today - Tesla does not remotely have the assets of GM - much less GM and FORD Together - nor does it approach the total sales of GM - or FORD alone as well. Tesla's balance sheet is heavy with Debt as too.

This is clearly a bubble - and it will break. It may take a lie of EVs from a number of other Manufacturers to do it - but it will happen - that is not in question. I am not so sure that you would be best served by selling today - but when enough models are being produced - some below the prices Tesla now charges - which will be in the next two years.

Analysts are rightly saying now is a good time to sell and take the profit.

Elon will sell Tesla sooner or later and now would be the time.

He'll never sell, will go down with the ship if needed.

Valuation is not actual worth nor is it the price for selling the company. Valuation is the theoretical, pie-in-the-sky guesstimate of its worth.

Right Matt. A company never sells at its current stock market value. When buyers perceive incremental future earnings potential above the current market valuation they pay a premium to capture it for themselves. Of course they are not always right. If the current market value is too high in the eyes of potential buyers, they wait until it drops or until company prospects improve further but the market doesn't recognize it. Again paying a premium to capture value unrecognized by the market and to incent owners to sell. At Tesla's exalted current value a deal seems highly unlikely as the shareholders of potential buyers would suffer significant dilution in their stock.

And even with companies that trade in the stock market, the buyer doesn't always make an acquisition by directly buying the stock. Yes, some take-overs are done through stock purchases, but a conventional buy can have different terms.

You lost me Matt. You can finance a take over with cash or stock with varying terms but how do you buy a publicly stock traded company without buying the shares? Its extremely rare to buy all the assets from a publicly traded company and then have it distribute the proceeds to its shareholder. Two companies can legally merge (rarer too) when of equal value with one management team exercising more control afterwards. "but a conventional buy can have different terms"...what am I missing? Are you referring to asset purchases of non public companies?

"Tesla stock still has a way to go to threaten General Motors back when it ruled the Fortune 500 in 1955, though turning historical numbers into modern values is tricky at best.

The Fortune 500 list debuted in 1955, with GM at No. 1. GM’s stock was worth $13 billion, based on 276 million shares and a closing price of $46 a share. The S&P 500 index closed 1955 at 45, with a total value of $400 billion. (Today’s S&P 500 totals almost $28 trillion.) A dollar in 1955 is worth $10 today, notes the Bureau of Labor Statistics, making GM’s outstanding stock in 1955 worth $130 billion today, 51% higher than Tesla’s. "

I think the valuation will be able to get well over $600 billion in the next decade if FSD is released and they are able to continue scaling.