Elon Musk’s company is the world’s most valuable carmaker, but it has never made a profit
When Elon Musk tweeted in May that the share price of Tesla was “too high” at $780 (£622), it caused a brief moment of panicked selling by investors in the electric carmaker. Yet two months later Tesla had overtaken Toyota as the world’s most valuable carmaker in a remarkable rally in which its market value briefly topped $300bn this week.
Tesla has never made an annual profit but the company has a market value equivalent to a third of the combined US, EU and Japanese auto indices – despite an expected share of only 0.8% of the global auto market this year. That disconnect has prompted re-evaluation from some investors and euphoria for others as they try to work out if the carmaker can ever justify the heady valuation.
Continue reading…Elon Musk’s company is the world’s most valuable carmaker, but it has never made a profitWhen Elon Musk tweeted in May that the share price of Tesla was “too high” at $780 (£622), it caused a brief moment of panicked selling by investors in the electric carmaker. Yet two months later Tesla had overtaken Toyota as the world’s most valuable carmaker in a remarkable rally in which its market value briefly topped $300bn this week.Tesla has never made an annual profit but the company has a market value equivalent to a third of the combined US, EU and Japanese auto indices – despite an expected share of only 0.8% of the global auto market this year. That disconnect has prompted re-evaluation from some investors and euphoria for others as they try to work out if the carmaker can ever justify the heady valuation. Continue reading…