
Tesla Will Become a $700B Gorilla, Top Investor Suggests - svirelka
http://www.bloomberg.com/news/articles/2016-06-07/tesla-will-become-a-700-billion-gorilla-top-investor-suggests
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abc_lisper
I don't see how people come up with crazy numbers like this. Honda sells a
shit ton of cars, and it's market cap is 50Billion..

[https://www.google.com/finance?q=NYSE:HMC](https://www.google.com/finance?q=NYSE:HMC)

Toyota is 175 Billion with all the cars they call

[https://www.google.com/finance?q=NYSE%3ATM&ei=PqtYV8GCFOGqiQ...](https://www.google.com/finance?q=NYSE%3ATM&ei=PqtYV8GCFOGqiQKLrblg)

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jasode
_> I don't see how people come up with crazy numbers like this. Honda sells a
shit ton of cars, and it's market cap is 50Billion._

I think the way to view $700B is to picture Tesla as diversified company of
selling battery technology, self-driving AI algorithms, _in addition_ to
selling cars. E.g. the PowerWall for homes, or licensing self-driving tech to
FedEx, UPS, garbage trucks, etc. I don't have a crystal ball but this type of
"diversified world domination" thinking seems similar to the grand strategies
of AlphabetGoogle and Apple.

It would be similar to thinking of 1995 Amazon.com as "only an online
bookseller" and underestimating its future market cap potential. If Barnes &
Noble market cap is only $84 million, how can Amazon be worth $340 billion?!?
Because investors and industry observers noticed that Jeff Bezos was expanding
to sell CDs & DVDS, kitchen appliances, opening up a 3rd-party market
platform, cloud computing with AWS, etc.

Honda also does some other things besides cars (e.g. Honda lawn mowers and
Honda motorcycles) but some people believe Tesla's ambitions outside of cars
will be worth more. Today, Tesla car sales are only a tiny fraction of Honda's
and yet it already has market cap of $34 billion.

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dragonwriter
Phrased a different way: person with intense financial interest in other
people thinking Tesla is worth lots of money says Tesla will be worth lots of
money...

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dharmon
Ugh, I hate feeling like a Silicon Valley naysayer, but this outlook is
entirely wishful thinking and not remotely rooted in fundamentals. But hey,
why ruin a good story?

Baron was once a legitimate investor and knew how to root out value, but now
his business is fees off of a massive AUM. Its hard putting $26B to work in
the market at a reasonable rate of return, so I guess he's resorting to
"talking his book" and investing in popular stocks to make his wealthy clients
feel comfortable in the crowd.

He's apparently already gotten a little bounce off his comments, so good for
him I guess.

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arcanus
Toyota's market cap is 200B

VW is at 90B

Ford is 53B

GM is at 45 B

Hyundai is 30B

Roughly speaking he is predicting that not only will Tesla become the largest
automotive company by valuation, but that it will be as large as all the
others _combined_.

I'm skeptical.

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bfrog
Silicon Valley, the place where numbers are farted out and believed daily.

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ulfw
Well if the top investor suggests it, then it MUST be true. Oh dear...

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maxxxxx
Time to sell?

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svirelka
agree

