Consider this chart of the (P/E Ratio) for the seven tech giants.
While most companies have P/E ratios ranging between 28 and 57, which is a reasonable range for leading growth companies,
"Tesla" stands out with a sky-high P/E ratio reaching 285 times.
What does this number mean? Simply put, the market is not pricing Tesla as a car company, nor even as an ordinary tech company. It is pricing "huge" future promises in the fields of robotics and leading artificial intelligence.
But the gap here has become too deep to ignore; investors in Tesla today are paying for profits that may not materialize for decades,
while companies like "Meta," "Google," and "Amazon" are showing real, tangible growth with the lowest P/E ratios in the group.
Summary: When the chart is filled with an "elephant in the room" as in Tesla's case,
we must ask: Does the market see a genius vision that we do not? Or are we living in a disconnect from financial reality?
History has shown us that extremely inflated P/E ratios are always the toughest test of investor resilience.
In your opinion, Is Tesla's P/E ratio of (285) still justified considering Elon Musk's ambitions, or is a correction inevitable?
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Consider this chart of the (P/E Ratio) for the seven tech giants.
While most companies have P/E ratios ranging between 28 and 57,
which is a reasonable range for leading growth companies,
"Tesla" stands out with a sky-high P/E ratio reaching 285 times.
What does this number mean?
Simply put,
the market is not pricing Tesla as a car company,
nor even as an ordinary tech company.
It is pricing "huge" future promises in the fields of robotics and leading artificial intelligence.
But the gap here has become too deep to ignore;
investors in Tesla today are paying for profits that may not materialize for decades,
while companies like "Meta," "Google," and "Amazon"
are showing real, tangible growth with the lowest P/E ratios in the group.
Summary:
When the chart is filled with an "elephant in the room" as in Tesla's case,
we must ask:
Does the market see a genius vision that we do not?
Or are we living in a disconnect from financial reality?
History has shown us that extremely inflated P/E ratios are always the toughest test of investor resilience.
In your opinion,
Is Tesla's P/E ratio of (285) still justified considering Elon Musk's ambitions,
or is a correction inevitable?
Looking forward to your thoughts in the comments.