Tesla is an oddity in the business landscape. The company’s stock is so stratospheric that Elon Musk has surpassed Jeff Bezos as the world’s richest person. Now, we have another mind-blowing metric. At Tesla’s current price-to-earnings ratio, it would take the company almost 1,600 years to make what the stock market says it’s worth.The New Statesman put up a startling comparison. In 2020, Tesla delivered 499,550 vehicles. Yet, its market capitalization shot up to $750 billion dollars. Comparatively, General Motors delivered 2.5 million vehicles in the same year, yet its market value is only $62 billion. Tesla’s price-to-earnings ratio — a comparison of current share price to earnings per share — is roughly 128X (the industry average is 15X), according to Zacks Investment Research. Based on that ratio, it would take Tesla 1,600 years to make the kind of money the stock market says it’s worth.
Source: Tesla Would Take Nearly 1,600 Years To Make The Amount Of Money The Stock Market Values It At
Robin Edgar
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