Elon Musk’s misadventure with Twitter is not the main factor in the dramatic decline in value
Tesla was being valued at “many multiples” of the price-to-sales ratios that had been achieved by members of the big-tech Faang club at the same stage of their corporate development, he pointed out. The market was assuming Musk’s creation would not only be as brilliantly successful as the likes of Facebook, Apple, Amazon, Netflix and Google – “some of the greatest companies in the history of capitalism” – its success would put theirs in the shade. “This is a big ask,” Grantham said drily.
The day was bound to arrive. It was always absurd to ignore the well-funded efforts of Ford, Honda, BMW, Toyota, Volkswagen. One should now assume the competitive field has changed permanently. As it is, Tesla seems to have had to work hard with discounts to keep sales roughly in step with its production schedule in the final quarter of 2022.
None of which deflects from Tesla’s status as a great 21st-century company that has redefined its industry; it deserves its place in the tech pantheon. But, now the valuation bubble has burst and investors have learned that the price isn’t going to the moon, one can start to talk about a fair valuation.
At the new level, Tesla is still valued at about 29 times projected earnings this year – earnings that some analysts, note, think will go sideways in 2023. In an automotive sector where the post-pandemic boom is fading, that is still a premium rating – just not an insane one. Musk still has a job to do to maintain it.Annoyed by how your energy supplier is sitting on hundreds of pounds of your cash as a credit balance? So you should be.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
South Korea fines Tesla for exaggerating driving range of its EVs in cold temperaturesThe driving range of most electric vehicles drop by up to 40 per cent in cold temperatures, with Tesla suffering even more.
Read more »
Four rescued in ‘miracle’ after Tesla plunges off cliff in CaliforniaTwo children and two adults survived crash after Tesla sedan plummeted more than 250ft near an area known as Devil’s Slide
Read more »
Live: Australian shares set to rebound, Tesla and Apple drag Wall Street lowerAustralian shares are likely to start the day higher, despite losses on Wall Street as oil prices slumped — along with shares of tech giants Apple and Tesla. Follow live.
Read more »
Tesla fined by South Korean regulatorsSouth Korea's anti-trust regulator has fined electric vehicle maker Tesla. The $3.3 million fine comes after the company breached advertising laws concerning vehicle ranges.
Read more »
ASX LIVE: Australian shares climbs at the open; tech strongest, oil stocks weigh; Tesla tumblesAustralian shares advance 0.7 per cent at the open. Wall Street declines as investors assessed the pain ahead for growth stocks. Tesla tumbles, Apple value falls below $US2 trillion. Treasury yields declined across the curve. Follow for updates.
Read more »
Incredible survival after Tesla carrying four plunges 76m off cliffFirefighters rappelled down the cliff to the car, while other first responders watched through binoculars. What they found inside shocked them.
Read more »