In this video I am thinking out loud about some exciting things happening in markets. Especially how Elon Musk has outdone Warren Buffett. That's right.
Tesla's market cap is now bigger than Berkshire Hathaway's market cap.
I never saw that coming. I am not sure why, perhaps the potential growth continues to astound people. For the really bold thinkers, maybe Tesla will one day merge with SpaceX and it will become much more than a car company. Perhaps its solar capabilities will continue to take off.
We shall see.
Later in the video I also brainstorm about the comparison of cryptos total market cap and other companies like Visa and JP Morgan. The old companies. Do they still have a chance to succeed or is that it for them? All comments welcome.
That's true for now but I doubt 1200 P/E justifies Teslas valuation. Call it for what you will but unless Musk maintains either software dominance in self driving cars, or electric dominance in providing EVs to the world, his market share will be eaten alive by companies like BMW, Toyota, NIO etc. Literally doesn't take a smart person to look at that P/E ratio and say if I buy 1 share of Tesla today, it would take over 1000 years for it to pay itself off. Why would I then buy Tesla shares when I could buy literally any other top 10 companies in SP500 and they would all pay off under 100 years. These are important things that retail investors are over looking and thus why Buffet owns 0 shares of Tesla.
scheplick
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@VickzinBK well said, but also it seems the market does not care how long it takes. i feel like this kind of happened with Amazon as well. they earned nothing until they had become the obvious leader, then started showing some earnings.
cris_s
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Simple: Electric car bubble.
oshin11
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@cris_s this statement. Do people think Tesla is really worth 550B? Crypto, Tesla, real estate... instead of inflation in one form QE has created rampant asset bubbles. Don’t get caught with your pants down.
how much of that 550 billion is from non-backed tether vs real USD entering the market? Remember, tether accounts for +90% of the daily volume and they've never had a single audit! And I have yet to meet someone that knows how to deposit and/or redraw tether tokens for USD... like wtf is that about?
TheCryptoChartWhisperer
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I enjoyed your video, thanks mate! This is my analysis. I am about to sell my position. imgur.com/a/N9XZa6p