Elon Musk said that Tesla is overvalued considering the amount of money it loses.
might be a dreamer, but he might be a little more realistic than some of his investors. In an interview with The Guardian
– the focus of which is actually about working conditions – the Tesla
CEO admits his skepticism about the company's stock value, which is currently well over $300 a share.
"I do believe this market cap is higher than we have any right to deserve," Musk says. Tesla's market value surpassed Ford
, and then GM
, despite only producing only a miniscule fraction of the numbers of vehicles those automakers deliver. He adds, "We're a money-losing company," alluding to the amount of cash the company burns, something not uncommon for a foundling company.
Musk isn't the only one who thinks Tesla is overvalued, though. Earlier this week
, a top analyst at Morgan
Stanley dinged the company's rating. Stock prices took small hit, but still remain up well over 50 percent for the year.
Starting a car company is "the worst way to earn money, honestly," says Elon Musk, before adding that "maybe rockets are a bit worse," a nod to his aerospace company, Spacex. "On a risk-adjusted return basis, an auto company has to be the dumbest thing you could possibly start." Musk constantly reminds the world that he isn't just in it for the money, though. How many times has he told us he wants to help save the planet (or, if that doesn't work, at least save humanity)?
Still, it's odd to hear a CEO discuss the overvaluation of his own company, even if he's right.
Read more at autoblog.com