Too Long; Didn't Read
Tesla’s value <a href="https://www.google.com/finance?q=tesla&ei=pLg9WcnzJYSr2AbGt5_ADw" target="_blank">jumped this past week</a>. Astronomically. It’s now the <a href="https://www.driverless.id/news/and-suddenly-tesla-becomes-5-9-billion-car-brand-with-32-jump-value-0177903/" target="_blank">8th highest valued car brand in the world</a>. The company has had a 85.93% share price increase since the Dec 2016 and now has a ~$56Bn market cap. <a href="http://www.businessinsider.com/investors-ignoring-tesla-production-problem-2017-6" target="_blank">Yes, in a world where it</a> has not produced as many cars in its lifetime as the <a href="https://www.forbes.com/sites/bertelschmitt/2017/01/30/its-official-volkswagen-worlds-largest-automaker-2016-or-maybe-toyota/#41cf873676b0" target="_blank">#1 car manufacturer produced last year</a>. So is that right? Are we skewed in our valuation of companies because they are more technologically innovative than others? The answer is yes. But, in Tesla’s case, it’s a lot more complicated and it’s definitely not for the reasons we think. I’ve had this conversation with a few non-utility industry friends and I had to write a post to share.