[swamp_donkey]

I think the valuation is based on potential for growth.

People expect Tesla to grow by doing new things that other companies don’t have the ability to do, either because they have a cash cow they don’t want to disrupt, they don’t appreciate the value software can bring to automotive with some more love than it has been getting, they don’t have the people and culture to take risks and everyone is happy with small tweaks to existing designs, they don’t know how to go back to the drawing board and make a new car and new production line from first principles.

Tesla has learned how to do everything in a decade and has exceeded traditional automakers in some areas and has nothing to lose.

I don’t care about Elon, I have never owned Tesla stock, but I surely admire his ability to execute, and I think that is part of the reason the market assigns such a high multiple Tesla - they are going to be at the vanguard of any developments in the electric terrestrial transportation space.