Tesla has an insane PE ratio because it’s a casino stock (~350x). As a comparison, NVIDIA IS 40x. SpaceX Is projected to be 300-500x. These are fantasy, completely unrealizable valuations. Similar to Enron, and Enron was over 70x. Enron wasn’t some surprise either.
Typically when PE gets out of whack, market analyzers dig into what is happening because it’s usually chicanery. No longer. Everyone is along for the ride.
When people say something is like enron, they dont mean it has a high PE. Its like saying someone is like Hitler and meaning they are a failed art student
There's a lot of parallels:
* Circular transactions between companies under the same control
* Using SPVs to keep debt off the books
* The supplier funding its own customer through investment to inflate revenue on both ends
* Valuations driven by a hyped up narrative and decoupled from actual fundamentals
I have a suspicion the reason Musk wanted to combine SpaceX and X.ai is the latter gives him losses to write off against all that cash from the former plus a chance for a big AI payoff.
People underestimate how much ships changed the world. It will happen again, the only question is when.
They're prepping for an IPO and there have been some anonymous insider reports of the figures in the press
There are industry estimates
Much of their income comes from public contracts