Tesla at $40 billion ….Cheap?
Tesla is back over $250 and $40 billion in valuation.
I would say 95 percent of the investing public thinks the stock is OVERvalued.
To put Tesla’s size in perspective, Apple is $630 billion and 95 percent of the investing public thinks the stock is UNDERvalued
From a brand recognition perspective though, Tesla might be on equal footing with Apple.
In my books they are both 8 to 80 brands which means that I like to buy the stocks anytime they fall 20 percent. My 8 to 80 list is focused on brands/products that are widely recognized, owned and loved from 8 to 80 years of age.
I was on a Facetime call with my friend Tom Brammar (he lives in Italy) who was outlining the reasons Apple needs to buy Tesla:
sidenote — For one thing why won’t Apple let me live broadcast my facetime calls!
Obviously Apple could easily afford this deal and I asked Tom to summarize as quickly as he could the reasons for why it made sense. Here is the post that he banged out for me.
A year ago I might not have agreed with him. Today, wile I don’t agree with him that Apple is ‘dying’, I would love to see this happen because it would turn Apple from a mobile business into a mobility business.
Disclosure — Long Apple and no position in Tesla (while I love Tesla the actual product, I hate Tesla the financial product).
Originally published at Howard Lindzon.