It's pretty safe to say that after a decade of unfulfilled projections and promises, the Tesla EV fantasy is now a bust.
So now it's off to new fantasy --- robotaxi.
The problem with this fantasy --- ride hailing isn't nearly as profitable as auto manufacturing.
Half the world isn't going to ditch their autos in favor of robo rides any time soon. This is what it will take to justify Tesla's current outlandish stock price.
Uber P/E is about 20. Tesla P/E is around 170. Can Tesla ride hailing be 6 times bigger/more profitable than Uber in the near future? I personally don't think so.
So now it's off to new fantasy --- robotaxi.
The problem with this fantasy --- ride hailing isn't nearly as profitable as auto manufacturing.
Half the world isn't going to ditch their autos in favor of robo rides any time soon. This is what it will take to justify Tesla's current outlandish stock price.
Uber P/E is about 20. Tesla P/E is around 170. Can Tesla ride hailing be 6 times bigger/more profitable than Uber in the near future? I personally don't think so.