Valuing EV Companies

The discussion dives into the complexities of valuing Tesla compared to Ford, highlighting the stark difference in their price-to-sales ratios. While Tesla is valued at an astonishing 21 times sales due to its rapid growth potential, Ford sits at just 0.5 times sales, reflecting investor skepticism about its reliance on internal combustion engines. The market perceives a significant shift towards electric vehicles, leading to a revaluation of Ford as it separates its EV and combustion engine divisions.