Does Tesla Deserve to be The World's Most Valuable Automaker? | Economics Explained

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Tesla is today the most valuable automaker in the world by market capitalization beating out industry giants like General Motors, Ford, Volkswagen group, and even Toyota.

It has achieved this impressive feet despite a short operating history, a limited product lineup, and even relatively modest sales figures compared to these much more established entities.

In spite of all of these indicators, investors are willing to pay more than five times as much for the same stake in Tesla as compared to the more traditional automakers.

So what is going on here?

What do investors see in Tesla that a rational person may not?

What is the companies vision to truly justify being valued this highly?

and could this all be a charismatic CEO taking a pool of naive investors for a ride?

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Комментарии
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Thanks as always for watching :D This video was requested by the team over on Patreon. If you want to have your say on what video is produced next please consider supporting the channel.

EconomicsExplained
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.... Despite all of this, not many people have become rich by betting against Tesla.

EconomicsExplained
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So TSLA calls or puts? I wasn't paying attention. Just tell me how to gamble my money.

evilbred
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“Maybe $400 billion is a ludicrous amount for a car company.”

…listening to this at $1.1 trillion valuation.

bobdobb
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the last time I was this early I could sneeze and people would say bless you instead of running away

josephstalin
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Short sellers: "TSLA is overpriced!"

Elon: *laughs in stock split*

Quickonomics
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“Tree hugging tech bros” had me burst out in laughter 😂

lukasvizenetz
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Warren Buffet might instead say "Tesla is the most _expensive_ car manufacturer" ;D

TheDhammaHub
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Excellent. I believe also the greater market trend to be towards electric vehicles and Tesla could pivot to become a supplier of batteries and other components which would increase revenue greatly. Elon has also indicated this however I don't believe we've seen any examples yet.

BenSullinsOfficial
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When will you pick a chief economic meme officer?

HighSpeedwhale
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Fun Fact: Tesla has now more than doubled since this video was publiished.

houdini
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Triggered a lot of car guys saying that all the VW owned brands are "essentially the same car" 😂

thomasbraun
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Tesla is also selling the Model Y, so 4 models

andrewburney
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I thought Tesla Did report a profit for 4 consecutive quarters

patrickforsyth
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When you place a huge order on an industry, it will have a hard time keeping up and then the price will go up
But if you gradually increase, year after year, your orders then the industry that supplies you with the components only grows and grows and it becomes dependent on mass production.
Then the price of each unit drops dramatically
Something is missing in this video, the considerations are not final
As if the dynamics stop after one step

norelfarjun
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4:54

The VW Tiguan and Audi Q7 aren't built on the same platform. I think you meant the VW Touareg.

shimarinlogistics
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"Tesla stock price is too high imo" - Elon Musk

acommenter
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Love how the nebulous idea of "Tech" is now seen as a genuine type of product.

jordanreeseyre
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Elon Musk: "Sells some tequila"
TSLA price: *"STONKS"*

economicsinaction
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Classic bubble, competition will catch up by 2025, take market shares and use their more robust infrastructure to make Tesla just another car maker among many. The value of Tesla will go down to a levels that actually make sense

MaNMega