The insane thing about TSLA’s valuation compared to either its profit or revenue, is that it’s based on the idea of it growing by a bigger margin than the market could possibly have room for, even if they did turn around their tired-out product lineup and managed to get everyone to stop hating them. People still seem to treat them like a plucky new startup in its fast growth phase, even though they’ve been around two decades already.
They made barely 0.2% of their market cap in profit in 2025. A 12 month US treasury bond pays 3.52%. TSLA could increase profits by over 1500% and still be worse than a treasury bond whilst also being higher risk.
The insane thing about TSLA’s valuation compared to either its profit or revenue, is that it’s based on the idea of it growing by a bigger margin than the market could possibly have room for, even if they did turn around their tired-out product lineup and managed to get everyone to stop hating them. People still seem to treat them like a plucky new startup in its fast growth phase, even though they’ve been around two decades already.
They made barely 0.2% of their market cap in profit in 2025. A 12 month US treasury bond pays 3.52%. TSLA could increase profits by over 1500% and still be worse than a treasury bond whilst also being higher risk.