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Wall Street Values Tesla Motors at $620,000 for Every Car Delivered Last Year

posted by martyb on Thursday May 05 2016, @03:02AM   Printer-friendly

n1 writes:

Company founder and CEO Elon Musk may not mention Tesla Motors Inc's (TSLA.O) stock price when his electric car company gives its latest financial update on Wednesday, but it will be front and center for investors divided over its seemingly rich valuation.

After a rally that ended in April, Tesla's market capitalization is currently about $31 billion - equivalent to $620,000 for every car it delivered last year, or $63,000 for every car it hopes to produce in 2020.

By comparison, General Motors Co's (GM.N) $48 billion market value is equivalent to about $4,800 for every vehicle it sold last year.

Tesla's heady valuation - about 125 times the next 12 months of expected earnings - and the implication that shareholders may be overpaying for Musk's small but fast-growing luxury car company have made the stock a favorite of short sellers.

Source: Reuters

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  • (Score: 2) by rondon on Thursday May 05 2016, @12:19PM

    by rondon (5167) on Thursday May 05 2016, @12:19PM (#342006)

    Some investors with short positions will get nervous and buy the underlying stock if they think they have taken a losing position. Usually via automated buys at certain price points, in the circumstances I am familiar with.

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