To be fair I think this is long overdue. The fundamentals do not support the price of many stocks. Recently Tesla had more market cap than Toyota and many other established brands combined. No way in hell that is believable.
This is true but then there are giant corporations earning giant profits trading at a PE < 10.
It's only sexy stocks that people get excited by that go to the moon on a paper kite.
For example:
- Comcast (does the public hate them? yes. does the public send them ~$35B in revenue every damn quarter? also yes): PE 8.7 (https://valustox.com/CMCSA)
- JP Morgan, 5th largest bank in the world, biggest bank in the USA. Is banking risky? Yes. Is JP Morgan going to evaporate? Hell no. PE: 11.7.
- General Motors. Setting the world ablaze? No. Going anywhere in the next 20 years? Probably not. Look at their revenue trend. (https://valustox.com/GM) PE: 7.4.
- United Airlines. Yes, they break guitars. Yes, airlines have been a risky bet. But their PE ratio is 8.1. (https://valustox.com/UAL) When you buy cheap, risk is low.
If you see a company's products everywhere but you never hear about their stock, your bargain-stock spidey senses should kick in. When it's the inverse, I stay far away.
Yeah yeah. Diagram that out to its conclusion for us. The future where Tesla is producing more cars than Toyota at higher margins. What year will that happen?
One year is not indicative. Point of interest will be around 2030-2035, when multiple countries are having aggressive deadlines for EV adaptation. So, the question is will toyota be able adapt to new reality? So far they couldn't, EV attempts failed and they just are milking decade old tech/infra/supply chains. They will need to rebuild manufacturing and support significantly, while tesla has everything in place already.
Sure but the point is the stock price has little to do with any of that. It’s a meme stock that is regularly pumped with utter bullshit. Just look at what happened today, the King gave it a pump - a full frontal sales pitch TBH - and the stock is up despite all of the actual bad news for the brand.
