Why is Tesla valued at a trillion dollars?

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So, I understand that Tesla is a company that has a possibility of shaping personal transportation in the future, but how can people think it is worth the insane amount it is currently valued at? They do not have much in the way of production facilities compared to established automakers, their competition is advancing rapidly and their market share is decreasing. I’m just baffled by their valuation as a company.

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Anonymous 0 Comments

What are the odds of that possibility of shaping personal transportation? Let’s just make up a number and say 10%. What would their valuation be if they actually became that dominant? If people think it’s $10 T, then you can see how a 10% chance at $10T is worth $1T (ignoring it’s possible values if it doesn’t become that big for now). That’s all it really is. Certain people have high opinions on either that percentage chance or that future evaluation, and believe owning it now is worth the risk that they never become that big.

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