Bloomberg: "Tesla, Apple Trigger Wall Street Dreams of $3 Trillion Valuation"

By in
Bloomberg: "Tesla, Apple Trigger Wall Street Dreams of $3 Trillion Valuation"

Excerpt from Bloomberg quoting DataTrek’s Nick Colas:

…. “A $3 trillion market cap has to be a function of both the promise of a technology and some very tangible proof that its economic model is profitable, and deeply profitable,” said Nicholas Colas, co-founder of DataTrek Research. “So you don’t get to $1 trillion, let alone $3 trillion by just talking. You get there by showing the numbers, by showing the profitability.”

And while Apple has a solid track record of strong profit generation, Tesla is still in the early stages of that.

“Tesla has yet to prove remarkable profitability. And it doesn’t exactly operate in a sector that has remarkable profitability. I understand why it has the valuation it has today — breaking through on EVs and making them a mass-market concept is worth this valuation. However, getting a triple out of it, requires that you then show that that business model is profitable,” Colas added”….

Read the full article here on Bloomberg!