Tesla's value on the stock market far exceeds the number of vehicles it contributes to the automotive market. According to a report from Automotive News, Tesla is currently valued at $8.8 billion. Almost unbelievably, though we've never claimed to have a firm grasp on the inner workings of the stock market, that's a full billion dollars more valuable than Fiat and three times more valuable than PSA Peugeot Citroën, says the report.

How unfathomable is that statistic? Consider the fact that Tesla, a ten-year-old company, just managed to turn its very first profit last quarter and has produced fewer than 10,000 vehicles in its lifetime. How does that compare to an automotive giant like Fiat? Well... it doesn't – The brand sold 44,772 Fiat 500s in the United States alone in 2012, and it owns or controls the Chrysler portfolio of brands along with Ferrari and Maserati... not to mention the hundreds of thousands of cars Fiat Group sells yearly in the rest of the world.

Granted, the number of vehicles sold by a brand is just a small portion of its value, but you may still wonder, Why is such a seemingly small player in the global automotive marketplace such a big deal on Wall Street? According to AN, it has a lot to do with its controversial and headline-grabbing CEO, Elon Musk, and the way he disseminates company information to his investors. How so? We suggest you take a good look at the article here for the whole story.


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  • 67 Comments
      lasertekk
      • 1 Year Ago
      I have no issues with Tesla, actually being a fan. But these figures from these 'analysts' on valuation, I smell a localized bubble of sorts. What these guys engage in is not a science, it's voodoo.
      Letstakeawalk
      • 1 Year Ago
      North Carolina is in the process of rewriting the legal definition of "Dealer", which will create problems for Tesla's sales model. "The proposal, which the Raleigh News & Observer reports was unanimously approved by the state’s Senate Commerce Committee on Thursday, would apply to all car manufacturers, but the intended target is clear. It’s aimed at Tesla, the only U.S. automaker whose business model relies on selling cars directly to consumers, rather than through a network of third-party dealerships." http://www.slate.com/blogs/future_tense/2013/05/13/north_carolina_tesla_ban_bill_would_prevent_unfair_competition_with_car.html
        Grendal
        • 1 Year Ago
        @Letstakeawalk
        It's going to make Amazon, Overstock, and any other internet retailer a little upset. If NCADA, can legislate that Tesla can't sell their cars over the internet then what is preventing other markets from doing the same? This fight's going to be keeping lawyers busy. It's going to suck if people in North Carolina aren't allowed to buy the car they want. They will have to go out of the state to buy the car. If people are angryu enough about that then they will do something about it. I read that there were a lot of pro-Tesla people who wanted to show up to support the company. Instead they had the vote behind closed doors.
        Electron
        • 1 Year Ago
        @Letstakeawalk
        Crony capitalism at work. Goal: squeeze the newcomer. Strategy: undermine the most important pillar under its marketing strategy, the Tesla Stores. Tools: politicians willing to see things a certain way in exchange for campaign contributions. If they succeed and Tesla sales are relegated to grimy dealerships located out of sight of the general public they would have succeeded in dealing a potential lethal blow to Tesla. Their product needs easy access stores to explain what Tesla is all about and a dedicated sales staff that isn't mostly interested in selling ICE vehicles instead.
        m_2012
        • 1 Year Ago
        @Letstakeawalk
        It will never fly. Try as they might, when it comes down to it, you cant keep a product this good away from the consumer. Information is too accessible to allow this kind of crony government to keep things behind closed doors. The Tesla wagon has already gained momentum, good luck trying to stop it. Elon has already made friends and influenced people all the way to the top. In the time of Tucker, this was easy to do and it worked. Today, not so much.
        raktmn
        • 1 Year Ago
        @Letstakeawalk
        Screw North Carolina. If they North Carolinians want a Tesla, they can bid on ones on ebay, and pay the ebay Model S premium over new.
      Letstakeawalk
      • 1 Year Ago
      Any speculation on when TSLA will begin to offer a dividend?
        ElectricAvenue
        • 1 Year Ago
        @Letstakeawalk
        I don't think there will be any dividends for many years. The first priority is to get the Model X, then the "Gen III" car out.
        Letstakeawalk
        • 1 Year Ago
        @Letstakeawalk
        (That's what us longs really want to know) :0
        Spec
        • 1 Year Ago
        @Letstakeawalk
        Maybe when they make a decent about of money consistently.
      Avinash Machado
      • 1 Year Ago
      Great to see an American brand do so well.
      Really
      • 1 Year Ago
      Another joke! A flash in the pan, no real long term sustainability without heavy discounting or deceptive leases that will flood the market with used high end electric cars nobody will want.
        stumpy
        • 1 Year Ago
        @Really
        it's the opposite. the existence of Tesla will flood the market with used high end internal combustion engine cars that no one will want.
        Grendal
        • 1 Year Ago
        @Really
        Really? I suppose you haven't been keeping track or you're being intentionally obtuse. Motor Trend's Car of the Year in an unprecedented unanimous vote, It just got a 99 out of 100 from Consumer Reports, and it also got Automobile Magazine's Car of the Year for the gearheads. Every reviewer has said this car is one of the best they have ever driven with some saying it is THE best. I suppose you prefer to stick your head in the sand and hum loudly as the world moves ahead. Ignoring that the car is electric since that obviously scares you, it is still considered a great car. As for nobody wanting them, they have every car they can make sold out for this year. What other car can you name that has that problem? Not one? Yep. That's what I thought.
        Ernie Dunbar
        • 1 Year Ago
        @Really
        Translation: Just like the Tesla Model S is a car "nobody can afford", you should change the word "nobody" to "I can't". Since no journalist, blogger, or wonk in the comments ever speaks for "everybody". Ever.
        raktmn
        • 1 Year Ago
        @Really
        Really, if you really would have read Tesla's SEC quarterly and yearly reports, you would know that Tesla has never sold a single Tesla vehicle at any discount. The only plans Tesla's have for discounts in the future are to offer Service Loaner vehicles at a 1% discount per month they have been in service as a loaner car, and $1 buck off per mile driven. Not exactly heavy discounting. When it comes to "deceptive leases", the only thing deceptive about them is that they aren't really traditional leases. They are a purchase with a guaranteed buy-back price on the 3rd year. They will be offering to buy back at $3,400 above market. Considering how much more "Factory Certified" used luxury cars sell for over cars on non-branded dealer lots, Tesla will quite easily recoup every penny of this through resell. That $3400 basically translates into the price difference between buying a used Tesla from Bob's Used Car Lot, and buying one from Tesla directly, so there is nothing deceptive or heavily discounted there either. Right now there is a huge vacuum for used Tesla's. That doesn't show any signs of changing any time soon. If you don't believe me, go and guy a cheap used Tesla Model S or 3-5 year old Roadster off of ebay or cars.com. They don't exist.
      RetrogradE
      • 1 Year Ago
      OK, so, I know I said I'd never post-up on another TESLA article, but dang, AB is making that hard since it's all the put out. Seriously? Valued higher than Fiat? That's like valuing a bag of Burger King food over Taco Bell. Nothing to brag about, Russ.
        Shiftright
        • 1 Year Ago
        @RetrogradE
        That's a clueless statement. The article refers to Fiat Group, which is a massive conglomerate of brands: Fiat, Lancia, Alfa Romeo, Ferrari, Maserati, Dodge, Chrysler, Jeep, Ram, SRT, Tofas, Iveco / Magirus / Camiva, trucks and Magnetti Marelli among many other subsidiaries. This just shows how much BS is behind Wall Street's speculation; rate a (promising) 10 year old company over one that's been around for over a century.
          Vlad
          • 1 Year Ago
          @Shiftright
          You know, computer companies are all new compared to typewriter companies...
          ElectricAvenue
          • 1 Year Ago
          @Shiftright
          What on earth does the age of the company have to do with anything? There are plenty of long-established companies that have gone bankrupt, been close to bankruptcy, or would have been bankrupt without the generosity of the taxpayer.
        lasertekk
        • 1 Year Ago
        @RetrogradE
        Yes, totally clueless of Fiat's total holdings.
      Ernie Dunbar
      • 1 Year Ago
      I think a more accurate assessment is that Wall Street as a collective, is a ship of fools. If it weren't, then stock bubbles just wouldn't exist. The fact is that a good many investors know exactly nothing about investing and just blindly follow whatever's in the news this morning about what sounds cool. They typically end up being the buffalo herded over a cliff. And half of that herd thinks that they're taking advantage of the stupider half, when really they have no idea when it's time to get out.
        lasertekk
        • 1 Year Ago
        @Ernie Dunbar
        Correct. If finance, and in the bigger picture, the 'economy' were based on any logical and scientific principles, we wouldn't have bubbles or crashes. It's all voodoo, nothing more.
          Marc
          • 1 Year Ago
          @lasertekk
          haha. Love the sarcasm. Fantastic.
          ElectricAvenue
          • 1 Year Ago
          @lasertekk
          "based on scientific principles ..." I think that's a bit naive. The uncertainty in valuation of many companies is quite expected, there is no "scientific principle" that can accurately predict the future. Months ago, if you thought that Tesla would never successfully ramp up their production, you'd be betting on them going bankrupt. If you thought that they had the expertise in place, and would succeed at ramping up production, you'd be betting on the company doing well. There's no "scientific principle" that can show one or the other point of view to be correct.
          lasertekk
          • 1 Year Ago
          @lasertekk
          @ ElectricAve Let explain further. My background is in applied physics/optical engineering. I'm not pretending people with my knowledge base have all the answers to the universe. But I cringe when I think about the insular and narrow minded foundations that our society has used to fabricate this idea of an economy. I am most definitely not a fan of macro economics in any sense, with its basic tenents ignoring one natural law after another. In essence, this speculation of valuation that the analysis was built on has one huge variable; people. Specifically those Wall Street types, with their biases and underlying motives, and in my experience, people in those industries are the least objective in any regard. There's no lost love. Cheers.
      NVAJeeper
      • 1 Year Ago
      They valued Pets.com higher than Ford Motor Company at one time. Who wants to buy some tulip bulb futures?
        PeterScott
        • 1 Year Ago
        @NVAJeeper
        The did not. The Maximum valuation for pets.com was around 300 Million. You probably weren't alive when Ford was last valued that low.
      Al
      • 1 Year Ago
      Higher than Fiat? What a bunch of idiots.
      goatcars
      • 1 Year Ago
      Hybrids make little economic sense when you factor in cost of replacement batteries, increased maintenance and initial costs, but at least they will never leave you stranded on the side of the road....Electric cars make NO SENSE because it's only a matter of time before you are locked in a massive traffic jam,and lose power in need of a flatbed !!!! Not to mention you simply can't go on a trip...Even if there were charging stations on every corner, "quick" charges take 4 hours for a partial charge and we are now warned sustained quick charges will dramatically decrease battery life....Electrics are a novelty for short hops to the store, but NOT for freeway travel.
        spannermonkeyuk
        • 1 Year Ago
        @goatcars
        Electric cars use almost no power sitting in traffic jams, unlike an idling gas car, so you're less likely to be stranded in one. Tesla's Superchargers can charge the Model S to 50% in 20-25 minutes, and the cooling system ensures no "dramatic decrease in battery life". As for not being highway capable, there are more than 10,000 Teslas (Roadster & Model S) on the road proving you wrong every day.
        jat
        • 1 Year Ago
        @goatcars
        Unlike gas-powered cars, EVs don't lose much power at all while sitting stopped in traffic -- only the power to operate the accessories and computers. You could sit in a traffic jam for days and not run out of battery, but you won't fare so well without food, water, and bathrooms. "Quick" charger refers to things like CHAdeMO (a LEAF gets 80% charge in 20-30 minutes) and Tesla's Supercharger (which gets ~150mi in 30 minutes) and repeated uses don't degrade the battery (which is why they don't fast-charge all the way to 100%). It would be nice if you were actually informed, or even more unlikely, actually drove one before sharing your wisdom about the virtues of EVs. -- blissfully happy owner of two EVs: LEAF and Model S.
        Grendal
        • 1 Year Ago
        @goatcars
        Goatcars. You've never driven an EV so you really have no understanding or ability to have any judgement on them. Your opinions are your own yet you make flat statements as if it was reality and applies to everyone. Please stop. You don't know what you're talking about. Everything you wrote is obviously wrong to someone who knows even the smallest amount of information about electric cars. Please stick with what you know and make a marginal attempt to learn something about the subject you write about. That way you don't look a complete fool like you did this time.
        raktmn
        • 1 Year Ago
        @goatcars
        goatcars -- stick to forums dedicated to 1970's GTO "goats". Your information and attitudes are still stuck in the 70's too. As everyone pointed out, everything you said is factually incorrect, and easily proven wrong by real world experience. Oh, and when it comes to hybrid batteries running out, we already have 15 years worth of information on that in Japan and the US for Prius hybrids. It turns out that Prii regularly go 200, even 300K miles without needing battery replacements. And when they do, a refurbished battery pack, or a used low mileage junk yard battery pack are about the same price as a used or rebuilt transmission. Something that many gas cars will also need by 200-300K miles. And since the electric drivetrain takes a lot of the stress off of the gas drivetrain, there are lower than gas car engine and transmission failure rates on Prii.
        gpmp
        • 1 Year Ago
        @goatcars
        You may as well have said 'Internal combustion cars make little economic sense when you factor in cost of replacement engines'. Priuses are easily getting 200k miles without a new battery. Can you say the same about your (insert least favorite ICE car here)?
      Zoom
      • 1 Year Ago
      It's easy. Investors see more potential in Tesla, and I agree with them. Tesla represents the future. The Silicon Valley way of designing and building a car.
      JasonERF
      • 1 Year Ago
      There's many factors but the market values potential. This is why Amazon's stock has been doing so well but Apple's has tanked in the past 8 months. That being said, I've slowly fallen in love with the Model S and can't wait for Tesla to grow so they can reach potential customers like me.
        Grendal
        • 1 Year Ago
        @JasonERF
        Are you waiting on the Model X or Gen III sedan?
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