I don't understand much about what Musk does, nor why people seem to value TSLA so highly. The below is something I put together just shy of 2 weeks ago, so the numbers are likely a little off now.The news is a few days old, but what the heck happened that the whole Supercharger team at Tesla got fired?
https://electrek.co/2024/04/29/tesla-conducting-more-layoffs-including-entire-supercharger-team/
I haven't had the opportunity to use the supercharger network yet, but everything I've heard about it has been positive.
Hopefully Ionna and other networks were prepared to hire, because a lot of talent just became available.
Let's take a look at a couple stocks and their 12-month forward PE ratio:
- Tesla / TSLA 62.9
- Ford / F 6.22
- General Motors / GM 4.79
- Toyota / TM 10.27
- Honda / HMC 12.98
- Volkswagen / VWAGY 2.54
- Merc / MBGYY 5.33
- BMW / BMWYY 5.87
- Rivian / RIVN (N/A, losing money so no earnings)
Why in the world would anyone think TSLA is worth that multiple? The forward EPS is $2.58. That's Ford territory ($2.08 forward EPS). Toyota's is over $22.
Now, some people say TSLA shouldn't be valued as an automaker; it should be valued as a tech stock. I personally think those people are bonkers, but so be it.
The darling of the entire tech world right now is NVDA which produces the GPUs needed for AI. Red hot. Forward PE multiple of 36.11 on $25.07 forward EPS.
It makes no rational sense.