Quote Originally Posted by James108 View Post
It appears to be you who does not know how to value a company. All you have to do is look at the valuations of the biggest automakers in the world to see that Tesla is not being valued as a car company. If tesla was going to be as profitable as Toyota or Daimler in 10 years (a BIG call) they should be trading at about half their value currently (using a WACC of say 7% which is quite low). Instead I read their market cap was more than the next 5 largest auto makers combined.

They are obviously being valued as more than a car company (e.g. self driving was brought up earlier...) OR millions of redditors that do not know how to value companies 'like the stonk'.
What are you on about? I personally made no valuation of the company in my previous post: All I did was explain to you how most Tesla bulls are placing value on the company (its far future profits).

Notice the one thing I did say I expect to happen with the share price: "I expect the stock price to have big moves up and down over the next few years as the likelihood of either the bullish or bearish outcome increases or decreases as events play out."
If you really must know, I sold most of my holdings at $811, and the remainder at $700. The risk/reward ratio just didn't stack up at those higher prices for my own personal investing style.

I value each company independently - I don't care what industry they are in: every company should be valued on its own fundamentals. There is no set rule for how a "car company" should be valued. There are a multitude of different type of car companies all with different growth & profitability profiles. some are absolute dogs, some are high margin beasts. For instance there is a reason Porsche is valued at between $50-$100 billion despite the fact it only makes a few hundred thousand cars a year - its because that's what its own profitability and growth profile dictates.

Treating each company differently is why no one values Apple like a computer, phone or tablet manufacturer (these 3 products are notoriously low margin for most companies who make them).