As an investor, you want to put your money where the growth is. A high profit margin means people value the product highly and you don’t have competitors driving you into a commodity business.
If you made something for a dollar and sold it for 2, how? How did nobody see this chance? Why don’t you have an army of competitors driving that price to 1.05? This isn’t selling a single ice cream at a beach, it’s selling millions across every beach on the planet, where there are many existing vendors.
Tesla is supply constrained and can’t sell cars fast enough. Toyota is likely near their peak.
Investors don’t invest for who has “more money” (who cares? You get 1/n of that, it’s priced in) they invest for who can grow their money.
The car sales growth yes, hasn't happened but its more or less priced-in. But most Tesla long-term investors are much more excited about other things the company does.
Comments
As an investor, you want to put your money where the growth is. A high profit margin means people value the product highly and you don’t have competitors driving you into a commodity business.
If you made something for a dollar and sold it for 2, how? How did nobody see this chance? Why don’t you have an army of competitors driving that price to 1.05? This isn’t selling a single ice cream at a beach, it’s selling millions across every beach on the planet, where there are many existing vendors.
Tesla is supply constrained and can’t sell cars fast enough. Toyota is likely near their peak.
Investors don’t invest for who has “more money” (who cares? You get 1/n of that, it’s priced in) they invest for who can grow their money.
Yes, but a reasonable price. Whereas, Tesla is priced as if the growth had already happened.
The car sales growth yes, hasn't happened but its more or less priced-in. But most Tesla long-term investors are much more excited about other things the company does.