Courtesy of ZeroHedge. View original post here.
The battle between Elon Musk and Jim Chanos continues in the pre-market as non-GAAP exuberance is trumped by epic cash burns and reality-checks from hedge fund managers. The after-hours panic-buying algos appear to have enabled more than a few to exit in a hurry…
Even with near record short-interest…
The squeeze couldn't hold…
We assume the reality of another equity raise to keep the ponzi dream alive is weighing on the hype of total world domination by 2020…
So what is the fundamental case math: with a market capitalization of $31 billion, Tesla is valued at about $620,000 for every car it delivered last year, and about $63,000 for every car it hopes to produce in four years, in 2020. By comparison, General Motors, with its 5x PE and $48 billion market value is equivalent to about $4,800 for every vehicle it sold last year: a 130x growth premium [for Tesla].
Some more math: if Tesla shares were to grow 10% a year for the next decade it would have to reach annual sales of 1.5 million cars at triple GM's typical $1,000-per-car profit to justify a more moderate price-earnings ratio of 20. Last year GM sold 10 million cars and Ford sold 6.6 million. Tesla delivered 50,000.
