"I do believe this market cap is higher than we have any right to deserve," Musk says. Tesla's market value surpassed Ford, and then GM, despite only producing only a miniscule fraction of the numbers of vehicles those automakers deliver. He adds, "We're a money-losing company," alluding to the amount of cash the company burns, something not uncommon for a foundling company.
Musk isn't the only one who thinks Tesla is overvalued, though. Earlier this week, a top analyst at Morgan Stanley dinged the company's rating. Stock prices took small hit, but still remain up well over 50 percent for the year.
Starting a car company is "the worst way to earn money, honestly," says Elon Musk, before adding that "maybe rockets are a bit worse," a nod to his aerospace company, Spacex. "On a risk-adjusted return basis, an auto company has to be the dumbest thing you could possibly start." Musk constantly reminds the world that he isn't just in it for the money, though. How many times has he told us he wants to help save the planet (or, if that doesn't work, at least save humanity)?
Still, it's odd to hear a CEO discuss the overvaluation of his own company, even if he's right.