Periodically other manufacturers have had 20-25% of US market share for overall vehicle sales so it’s tough to justify their valuation based on that. A frequent justification of that valuation was that the company could maintain market share. 50+% was always unrealistic but if they can’t capture more than 25% what would make them more valuable than another make making good margins? Toyota for instance.
Tesla has been disconnected from fundamentals forever but “growth” companies start to suffer in the market when the revenue growth and future market share start to decline. Falling margins doesn’t help their case.
Periodically other manufacturers have had 20-25% of US market share for overall vehicle sales so it’s tough to justify their valuation based on that. A frequent justification of that valuation was that the company could maintain market share. 50+% was always unrealistic but if they can’t capture more than 25% what would make them more valuable than another make making good margins? Toyota for instance.
Tesla has been disconnected from fundamentals forever but “growth” companies start to suffer in the market when the revenue growth and future market share start to decline. Falling margins doesn’t help their case.