> I really don't understand those investors and how they price a struggling company so highly.
Struggling, not so much: '24/'25 revenue of just under $100B, with Q3'25 record profitability and deliveries yielding $1.5B net income. Strong liquidity and a current ratio of about 2, boosting short-term financial stability. Solid cash reserves and relatively low debt ratio.
High stock price: far exceeds that of traditional auto makers even though Tesla's revenue is significantly lower. High valuation reflects investor expectations of growth and future tech upside. Exuberant? Probably. OTOH, Tesla has delivered better ROI for investors than the other automakers.
Struggling, not so much: '24/'25 revenue of just under $100B, with Q3'25 record profitability and deliveries yielding $1.5B net income. Strong liquidity and a current ratio of about 2, boosting short-term financial stability. Solid cash reserves and relatively low debt ratio.
High stock price: far exceeds that of traditional auto makers even though Tesla's revenue is significantly lower. High valuation reflects investor expectations of growth and future tech upside. Exuberant? Probably. OTOH, Tesla has delivered better ROI for investors than the other automakers.