Trial DataTrek Morning Briefings for Free

Thousands of investors and financial journalists rely on Nick and Jessica’s newsletter every day for their thought-provoking work on markets, data and disruption. See why for yourself by starting a 2-week FREE trial below.


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

By admin_45 in IN THE NEWS 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!

Trial DataTrek Morning Briefings for Free

Thousands of investors and financial journalists rely on Nick and Jessica’s newsletter every day for their thought-provoking work on markets, data and disruption. See why for yourself by starting a 2-week FREE trial below.