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Well howdy there guys i wasn’t even planning on releasing another video today i just released a video but something caught my attention that somebody left in the comment section that i was like i’ve got to talk about this somebody that left that comment thank you so much for leaving that i never even saw elon musk make this statement he made earlier in the week that

Basically he believes tesla stock is overvalued right now this is so rare this is so insanely rare guys i mean almost every ceo out there what do they do they hiked out their stock they talk about their stock while it’s undervalued that’s almost every ceo out there you almost never ever get a ceo the leader of the company and he’s one of the biggest shareholders

If not the biggest shareholder of tesla come out and say our stock is overvalued right now we got a look at these comments and kind of look into this a little bit guy so first off a tory published late last week about tesla in the guardian investors might zero in on one comment in particular that eeo elon musk made he said the companies this is quote market cap

Is higher than we have any right to deserve end quote in the building of an automaker from scratch quote is the worst way to earn money honestly end quote so that’s a huge statement in itself there and then we go on here and we see it would an analyst has to say analysts say it’s unusual as i just mentioned unusual for ceos to talk about their stock price in that

Way typically promoting it potential to go higher quote in my experience and over 10 years covering stocks and clean energy i’ve never heard another ceo say that end quote said can borrow part of barlow ken excuse me ben car hello and analyst at robert w baird who has an outperform rating on tesla stock it’s not the first time must either has come out and done this

Twice in the second half of 2013 so about four years ago following a big run up in the stock he said the value was higher than the company deserved a year later he made a similar quip saying quote our stock price is kind of high right now to be totally honest so we got to look at some number here and say how overvalued is tesla how ridiculous is evaluation on tesla

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And for in you guys know on this channel i talk about tesla a lot in amazon a lot right – to stocks they’re not to stocks i love to companies i love and i talk about how they’re going to use i’ll take over the future and all this and i get comments sometimes it says you know jeremy why don’t you put your money where your mouth is and then buy those stocks and the

Truth be told is just because i like a company i believe in a company a lot in the future doesn’t mean i believe in the stock because there’s a difference between a company is going to dominate in the future or in a company that has a ridiculous valuation if something has a ridiculous valuation i can love it to death right i mean if i’m the hugest michael jordan fan

Right and then there’s an autograph michael jordan jersey on like that’s the coolest thing ever but at the same time i would only pay a certain amount of money for that right i’m not going to pay eight billion dollars for a michael jordan jersey so you’ve got to draw your your you know your stake in the sand there somewhere that that kind of differs from where you

Love a company like i love amazon i love tesla but their valuations are insane which is why i don’t invest in them so even though they’re prod they’re not their profits are amazon’s profits are starting to come around but you know amazon’s revenues tesla’s revenues doesn’t mean i buy the stocks because i’m not either they’re too overvalued and let’s look at some

Metrics here either kind of show you this guy’s tesla stock here this is a company with a fifty two billion dollar market cap right now fifty two billion dollar market cap and ford for instance ford has a market cap of forty three billion dollars currently so tesla basically has about nine billion dollar valuation more than for that one of the biggest auto makers

In the world so let’s look at some numbers here i broke down tesla currently has a fifty two billion dollar market cap rate the average forward p/e currently which is the price to earnings ratio currently in the market is around an eighteen so tesla would need a two point eight eight billion dollar net income next year to basically have an average in average p/e

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Ratio for pe now that’s obviously that’s never going to happen in the market because basically what happens is higher growth companies which tesla is it’s a super high-growth company and we’ll the growth will even expand in the 2017-2018 something i just talked about the other day on a video i talked about how tesla’s you know revenues are going to explode they’re

Going to go even higher so when you’re you have a super high revenue number the net income kinda doesn’t matter to a certain extent but this is just for for example sake here that you need to have a two point eight eight billion dollar net income next year to have a basically a pe that would be similar to every other stock out there in the market so tesla last year

Lost six hundred and seventy five million this past quarter alone they lost over three hundred and thirty million dollars just in this past quarter they’re expected to lose large amounts of money this year and in 2018-2019 there’s some debate on maybe they can start eking out a profit but a lot of people don’t even have state that they will make a profit in 2019 guys

So needless to say i’m happy that elon musk comes out and says this because it needs to be said and i’m happy that it’s one ceo that’s willing to actually come out and say simply this this is such a rare thing that ever happens out there guys when a ceo says our stock is overvalued and that’s exactly how i feel about tesla know exactly how i feel about amazon which

Is why i don’t buy those stocks despite me loving those companies and i’ve loved them for years and i you know talk about them and how they you know amazon’s taking over the retail world and how tesla’s going to dominate the auto market but you don’t see me buying their stocks just because they have ridiculous valuations and the valuation side says no jeremy stay

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Away from the stocks even though my heart says you know what those those might do good in the future and they might you would look at elon musk tweet in 2013 when he said the stock was overvalued right look where the stocks gone since 2013 so it doesn’t always mean just because he thinks it’s overvalued i think it’s overvalued it can still go higher guys it just

Depends on what the perception of other humans are out there fund managers hedge fund managers what their perception of the value of the in the future is that’s what this side stock prices at the end of the day it’s all perception based you know i might have a perception on that drone that’s sitting over there i might say that that drones worth $500 you watching

You might have no need for a drone your perception that drone price you might pay $10 for it you might not even want to buy it at all someone else might be a drone they need a drone right now and they’ll go i’ll give you $5,000 for that drone give you anything guys so everything’s perception day so let me know what you guys think about tesla stock price i love to

Know if you think it’s overvalued or undervalued leave me a comment with your opinion on it it doesn’t have to be a long comment if you don’t want to leave that just overvalued undervalued or if you think it’s fairly valued maybe you think it’s fairly valued right now lovely hear from you guys if you just came across this channel you may want to subscribe we talk

Personal finance and channel we talk entrepreneurship on an actual business owner i give away so many business tips if somebody wants to pay me like a 8 million pe for my my real estate company i’m willing to sell it guys so i’m willing to sell and we also talked to stock market more than anything thank you for watching and have a great day you

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