Pat, I am OK. You are OK.
Tesla's EXAGGERATED market cap as relative to the
Big Three (& P/E)
You want to buy a publicly traded corporation; you have to START with the market capitalization as a base price. Market capitalization is equal to the market price per common share multiplied by the number of common shares outstanding.
Elon Musk is involved with several prominent companies, including Tesla, SpaceX, X (formerly Twitter), Neuralink, The Boring Company, and xAI. All of them have separate and distinct market capitalization.
| Corporations | |
In 2012, Tesla's market cap was approximately $3.9 billion. This figure is based on a share price of $2.26 and 1.71 billion shares outstanding on December 31, 2012. It was 4.7% of the Big Three's then $82 billion[1].
Elon Musk has been publicly discussing and promising self-driving capabilities for Tesla vehicles since at least 2013, 11 years ago. He initially stated that full autonomy would be available within three years in 2015, 9 years ago, which he later missed, according to Reuters. He has made similar promises nearly every year since 2020, according to The Verge.
Elon Musk has convinced the market that his ability to produce cars is worth 10 times as much, while producing less than 1/5 (18%) of the total vehicles.
Given everything else as equal, if Tesla was producing 10 times as many cars as the Big Three then Tesla's EXAGGERATED market cap might be reasonable.
Now I would agree that self-driving cars are going to be worth 10 times what today's operator-required cars. Just the virtual elimination of an insurance requirement would be a savings: That is before you take into account congestion reduction, more efficient operation and average speed increase.
Self-driving cars ARE THE FUTURE!!! Will they require infrastructure improvement beyond GPS, possibly. BYD (China) is producing an as good, if not better, electric car at much cheaper price and exporting them internationally. Trump's tariffs are LYING to the market. If you are in Asia, Africa, or E.U., do you buy a $30k BYD or do you pay $70K for a Tesla?
Elon Musk's fling with the Department Of Government Efficiency (DOGE) has already costs Tesla shareholders -37% based on the January 2025 market cap verse TODAY.
Eventually even the Trump/M.A.G.A. crowds are going to see the writing on writing, Trump, his tariffs, Trump / Musk DOGE and Tesla's market cap are all going NAUGHT!!!
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Price to Earnings Ratio P/E
The price-to-earnings (P/E) ratio is a valuation metric that compares a company's stock price to its earnings per share (EPS). It essentially tells investors how much they are paying for each dollar of a company's earnings. A higher P/E ratio suggests investors are willing to pay more for each dollar of earnings, potentially indicating higher growth expectations or overvaluation, while a lower P/E ratio might suggest undervaluation or slower growth prospects.
Tesla's PE based on the current stock price is $185. That means the earnings will take 185 years to pay back. A high PE is ok if the stock has REAL investment potential. Look at the 6 of the Magnificent SEVEN. The Magnificent SEVEN, stocks with REAL GROWTH potential average less thna 31, none them go over 50, much less 185.
The "Magnificent Seven" stocks refer to a group of seven large-cap technology companies that have significantly impacted the stock market, particularly in recent years. These companies are: Apple, Microsoft, Amazon, Alphabet (Google's parent company), Meta Platforms (formerly Facebook), Nvidia, and Tesla. They are often cited for their strong performance and influence on major market indexes like the S&P 500 and Nasdaq.
https://dgjeep.blogspot.com/2025/03/the-issue-with-trump.html
American Exceptionalism – NOT SO MUCH
https://dgjeep.blogspot.com/2023/10/american-exceptionalism-not-so-much.html
Equal Rights in a Free Market Economy
https://dgjeep.blogspot.com/2013/04/equal-rights-in-free-market-economy.html
A Balanced Budget for America
https://dgjeep.blogspot.com/2012/07/balanced-budget-for-america.html
BE AWARE, but do not be afraid, Trump is, at best and at worst, pathetically incompetent and INEFFECTIVE manager / leader!
https://dgjeep.blogspot.com/2025/01/be-aware.html
Trump does not know the name of the country he was or is to be president of...
https://dgjeep.blogspot.com/2025/01/istgtdnk.html
The constitutional small "d" undemocratic corrupt "dark money" Senate and Electoral College
https://dgjeep.blogspot.com/2024/01/dark-money-senate.html
Trump is a convicted and diagnosed psychotic criminal, chronic degenerate, maniacal liar and a "fucking moron!"
https://dgjeep.blogspot.com/2025/01/be-aware.html
Small "d" Un-Democratic "dark money" Senate
https://dgjeep.blogspot.com/2024/01/dark-money-senate.html
The Judicial sophistry of "absolute immunity" creates "absolute power" to the ABSOLUTE CORRUPTION of We the People's unalienable rights under color of law... the AUDACITY of the INSANITY, ignorance and stupidity in support of a "fantastic or delusional" scenario. The Emperor Has No Clothes.
https://dgjeep.blogspot.com/2024/01/if-that-is-not-absolute-corruption-of.html
https://dgjeep.blogspot.com/2022/09/the-facts-of-my-case-are-without.html
DGJeep v. Supreme Court of the United States (Petitions for Writ of Certiorari 07-11115, 11-8211, 13-7030, 13-5193, 14-5551, 14-10088, 15-8884 and 18-5856)
https://dgjeep.blogspot.com/2024/03/notice-of-suit-and-quasi-amicus-brief.html
https://www.supremecourt.gov/search.aspx?Search=David+Jeep&type=Supreme-Court=Dockets
Saturday, April 26, 2025 - 1:22:46 PM
[1] In 2012, General Motors (GM) had a market cap of approximately $41.91 billion. In 2012, Ford Motor Company's market cap was approximately $29.63 billion. The US Treasury, through the Troubled Asset Relief Program (TARP), invested $12.5 billion in Chrysler and recovered $11.2 billion when the company shares were sold in May 2011, resulting in a $1.3 billion loss
Thanks in advance...
"Agere sequitur esse" ('action follows being')
David G. Jeep, Federal Inmate #36072-044 (formerly)
www.DGJeep.com - Dave@DGJeep.com - David.G.Jeep@Gmail.com
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David G. Jeep
1531 Pine St Apt #512
St. Louis, MO 63103-2548
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