In no way is Telsa anywhere near as valuable as Ford or GM. Last quarter, Telsa sold 25,418 vehicles. Ford, on the other hand, sold nearly 10x that many in March alone. And GM? They sold 203,133 vehicles in March.
At the end of 2016, Tesla’s balance sheet had $22.6 billion in total assets and $17.9 billion in total liabilities. That’s about $4.7 billion more assets than liabilities. Ford’s balance sheet showed $238 billion in total assets, $208.8 billion in total liabilities, or about $29.2 billion more assets than liabilities. And GM? $221.7 billion in total assets, $177.9 billion in total liabilities, or about $43.8 billion more assets than liabilities.
I get that investors want to jump on board a company that has the potential for radical growth. Tesla may have that kind of potential. But valuing a tiny company that lost nearly $700 million in 2016 and that has essentially a single factory over that of Ford – which made $4.6 billion in 2016 – and nearly equal to GM ($9.4 billion positive in 2016) is beyond insanity. In any rational world, Tesla’s shares would be trading at a small fraction of the approximately $300 per share they are.
But hey, I’m just an engineer. I work with actual physical laws, as opposed to imaginary market “laws.” All I know for sure is that I’m not crazy enough to invest any of my money in a company that is so irrationally overvalued.