Shares of Tesla surged over 22% this week, pushing the company’s market capitalization to over $1.01 trillion. Tesla now has a price-to-earnings (P/E) ratio of over 330 in an industry where P/E ratios of 10 to 30 are typical. With its current market cap, Tesla is now worth as much as the next 10 most valuable global automakers combined, as this chart from wolfstreet.com illustrates. Ridiculous, or prescient? Time will tell.
Jeffrey Cerny