I Figured Out What Bugs Me About GM vs. Telsa Stock Comparisons

Posted: August 1, 2014 in Business, Farros, Royal, Technology and Business, Tesla, TSLA

I finally figured out what bugs me about the GM vs. Telsa stock comparisons…

… you know the ones that say it’s insane that Tesla shouldn’t be valued anywhere near GM because GM sells millions of cars and Telsa only tens of thousands?

Maybe Telsa isn’t valued so high… maybe GM is just valued as the broken company it is?

GM should have gone bankrupt a few years ago.  It makes relatively unexciting cars… and has for decades.  (Oh, to be able to buy a Cadillac worthy of attention again!)  Worse, it carries around the bloated vestiges of an old and out-dated infrastructure created by old and out-dated management.  Too bad the free market system wasn’t allowed to clean this up.

In contrast, TSLA makes exciting cars… and, with the gigafactory, possibly a lot more.

So, while GM may be a more powerful car company right now, it’s not a more power investment… which is clearly reflected in the market.

Advertisements

Comments are closed.