In the past year, Tesla’s stock price has surged more than 400%. The market cap is currently $US20.17, $11 billion higher than Fiat’sand half the size of General Motors.
Considering the fact that very few people own Teslas — only about 20,000 will be delivered this year — that valuation is hard to justify, even for Musk.
“They’re obviously giving us a lot of credit for future execution,” Musk said. “So we will do our best to honour the faith the market has placed in us. I really feel the valuation we’ve gotten is more than we have any right to deserve honestly. I think we need to make sure we really knock the ball out of the park in the coming years.”
When asked how it felt to see the stock price tick upwards, Musk replied: “I think the market goes through these periods of exuberance and depression…Our stock price is obviously far too high based on historical financials or even our current financials. So the value is very much based on what the future will be like.”
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