Investors criticised lack of detail about the ‘robotaxi’ showcased by Elon Musk

Analysts criticise lack of detail about the ‘robotaxi’ showcased by CEO Elon Musk

Tesla shares fell nearly 9% on Friday, wiping about $60bn (£45bn) from the company’s value, after the long-awaited unveiling of its so-called robotaxi failed to excite investors.

Shares in the electric carmaker tumbled to $217 at market close following an event in Hollywood, where the chief executive, Elon Musk, revealed a much-hyped driverless vehicle. The stock price is down roughly 12% year-to-date.

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However, analysts said the event was short on detail and also expressed disappointment over a lack of specifics about other Tesla projects. Musk has a history of making grand projections about upcoming products and failing to follow through in the timeframe he has set, or at all.

  • explodicleEnglish
    1·
    1 day ago

    But you’re comparing profit “apples” to (meaningless) market cap “oranges”. Almost everything looks overvalued that way.

    • Saledovil
      1·
      1 day ago

      Looking at a different example, Ford’s market cap is $42.61e9, and its revenue is $47.81e9, while the profit is $1.83e9, 20 times of which is $36.6e9. If we average both of them we get $42.205e9. So Ford seems to have about the right valuation.

      • explodicleEnglish
        1·
        1 day ago

        So it’s not meaningless then, it’s useful for value investing strategies.

        • Saledovil
          2·
          19 hours ago

          I suppose that’s true. But it just bothers me when people talk about the market cap like it’s an amount of money that exists somewhere, instead of being an abstract valuation.