Quote:
Originally Posted by xelasnave
Where is Gary he will know  .
Alex |
Hi Alex,
I only wish I had that good a crystal ball
Market cap of a trillion and over valued? As you point out, the numbers
don't appear to add up.
But as you are aware, the stock price reflects not what a company is worth
today but what people perceive the value of the company will be in
the future.
Though I can't read the mind's of investors, my hunch is that they are
betting not on how much profit this company will be making in the
next few years but rather how much they project it might make way out
in 2030 and 2040.
Tesla themselves have given out projections of those sort of timelines.
But perhaps they don't need to. I think the investors are not just looking
inward at Tesla, they are looking outward at climate change.
My hunch is that people are betting on the sweeping changes that will
need to occur surrounding climate change will really kick in over the
next few decades.
Perhaps it is the inverse of what is happening here in Australia or more
accurately, what is not happening here in Australia.
I saw a commentary last week that included a graph that showed
business investment as a function of time here in Australia.
You would hope with near zero interest rates businesses would have
been borrowing like no tomorrow to invest. But the graph
showed business investment here had dropped to essentially
zero. The commentator's own hunch was that the lack of government
energy policy had left businesses with no certainty about investing.