[ELI5] What does it mean when people say that Tesla stock is overvalued?

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I just saw a post that said Tesla stock is only worth 1/5 as much as it’s valued as. It doesn’t make sense to me.

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Anonymous 0 Comments

The value of a company is theoretically, it’s breakup value, the value of its profits, and the present value of all future profits. The vast majority of Teslas value is its future profits. Saying it is overvalued means you don’t think it’s future profits will be enough to justify its current price.

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