Understanding Company Valuation (Ford sells 10x more cars than Tesla, but it’s worth much less) How?

2 years ago
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How does company valuation work? Where does it come from?

Today we have an interesting case study of Tesla vs Ford.

Ford is clearly a much older automotive company, while Tesla is a fairly new company whose success blew out of proportion! As of today, it is worth close to 1 trillion dollars! This is more than all the other auto companies combined!

Ford sells more cars than Tesla, yet Tesla has a MUCH higher valuation! Where does Tesla's high valuation come from? What can we learn from Tesla's case?

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