Tesla market cap is US$ 1.3 Trillion in comparison to regular car manufacturer it’s ridiculously high
The world leader Toyota has like market cap of 45 billions and other big manufacturer reach similar value. The only exception being the other leading brand on electric car “BYD” with a market cap of 750 billions.
However, even assuming that Tesla stays the leader of electric car, how would it make it more valuable that let’s say Toyota. Especially now that “many of the person who can invest the price of an appartment in a fancy car” did switch to electric, and that the electric market needs to develop the cheap and compact urban car for middle-class person who can’t afford a car above 20 thousands euros (Because to be realistic the era of 10 000 EUR car is over)
I simply can’t understand how Tesla market valuation is so high
Just a guess, I think it’s just general stock market shit. Electric cars is a growing market while combustion engine cars is a shrinking market. So the expectation is that electric car manufacturers will increase in value while others will shrink. That makes investors invest and actually make the value go up.
Even if all cars sold were Teslas their value is more than all the combustion car manufactures. Most combustion car manufactures also have electric cars and will make more if/as the market demands. (some of them are not making good electric cars, but they are likely to improve)