What is the reason Tesla has ~10x the market cap of either F or GM? There are future cash flows priced in that the traditional car makers don’t have.

For fun, let’s assume TSLA’s car business is twice as valuable as F/GM, ~100B. What does the market see to give it the additional ~$300B of market cap?

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Posted by plaric

Pike Road, Alabama

Member since Jun 2011

2204 posts

Posted on 4/18/24 at 3:39 pm to LSUcam7

- Charging infrastructure - make money helping other manufacturers EV owners charge their EVs
- auto drive licensing - Elon has made it known that he wants to license auto driving capabilities to others.
- robotaxi - allowing users to make money with their cars when they aren’t using it as well as allowing non human driven cars carry passengers. Replacement for Uber / taxis
- AI - artificial intelligence to further growth of his other companies and Teslas capabilities.
- humanoid robots - replacing and scaling jobs humans don’t want or can’t do.

Tesla really is a tech company that happens to sell cars.

This post was edited on 4/18/24 at 3:41 pm

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Posted by wutangfinancial

Treasure Valley

Member since Sep 2015

11194 posts

Posted on 4/18/24 at 4:14 pm to LSUcam7

quote:
What is the reason Tesla has ~10x the market cap of either F or GM?

Options liquidity is my guess

quote:
- Charging infrastructure - make money helping other manufacturers EV owners charge their EVs
- auto drive licensing - Elon has made it known that he wants to license auto driving capabilities to others.
- robotaxi - allowing users to make money with their cars when they aren’t using it as well as allowing non human driven cars carry passengers. Replacement for Uber / taxis
- AI - artificial intelligence to further growth of his other companies and Teslas capabilities.
- humanoid robots - replacing and scaling jobs humans don’t want or can’t do.