How can 1 US company be worth more than the top 350 UK companies?

Middle_of_the_Road

boingy said:

Middle_of_the_Road said:

masonic said:

Perhaps they are overvalued.

No doubt some are. Would like to know how these two companies are valued 

Tesla ~ $1 tn
Ford ~ $40 bn

One makes cars that people want.
One is wondering how to stay relevant in a rapidly evolving marketplace (and they are far from alone).

Are you referring to Tesla?. I think that feeling has shifted markedly recently.

Anyhow, both of those statements could apply to either company. 

Ford seem to be moving away from their commitment to electric, which could be a good decision. Other technologies may well emerge that are more attractive to a wider market than battery power.
This could leave Tesla wondering how to stay relevant. 

eskbanker

boingy said:

Middle_of_the_Road said:

masonic said:

Perhaps they are overvalued.

No doubt some are. Would like to know how these two companies are valued 

Tesla ~ $1 tn
Ford ~ $40 bn

One makes cars that people want.
One is wondering how to stay relevant in a rapidly evolving marketplace (and they are far from alone).

But opinions differ about which is which....

boingy

Middle_of_the_Road said:

Ford seem to be moving away from their commitment to electric, which could be a good decision. 

If that is true then they really are flirting with a Kodak scenario. 
"These new-fangled electric cars will never catch on."

I do believe there will be better technologies in the future but today all major car companies need to make EVs or risk becoming a Chinese brand name.

As for Tesla, their sun may set one day but not just yet. They are being squeezed by China but all the anti-Musk sentiment is just noise. 

Hoenir

eskbanker said:

boingy said:

Middle_of_the_Road said:

masonic said:

Perhaps they are overvalued.

No doubt some are. Would like to know how these two companies are valued 

Tesla ~ $1 tn
Ford ~ $40 bn

One makes cars that people want.
One is wondering how to stay relevant in a rapidly evolving marketplace (and they are far from alone).

But opinions differ about which is which....

Appears people are voting with their wallets........

Meanwhile the owner of one is having tantrums because his best mate has pulled a fast one by proposing to eradicate Government subsidies on his company's product. 

Middle_of_the_Road

boingy said:

Middle_of_the_Road said:

Ford seem to be moving away from their commitment to electric, which could be a good decision. 

If that is true then they really are flirting with a Kodak scenario. 
"These new-fangled electric cars will never catch on."

I do believe there will be better technologies in the future but today all major car companies need to make EVs or risk becoming a Chinese brand name.

As for Tesla, their sun may set one day but not just yet. They are being squeezed by China but all the anti-Musk sentiment is just noise. 

It's not just Ford..

https://trellis.net/article/the-ev-pullback-why-these-5-automakers-are-retreating-from-big-plans/

Tesla will need to keep up with their competition. New models are overdue.

https://www.businessinsider.com/tesla-cars-starting-to-look-basic-sales-problem-2024-7

Middle_of_the_Road

InvesterJones said:

Middle_of_the_Road said:

masonic said:

Perhaps they are overvalued.

No doubt some are. Would like to know how these two companies are valued 

Tesla ~ $1 tn
Ford ~ $40 bn

It's certainly hard to ascertain the opinion of the entire investing world that results in that consensus, but it was probably (fear of) the Kodak effect.

Probably.
I doubt Ford would ever be the next Kodak though.
Most of the big automotive names will be doing R&D into alternative powertrains.
Tesla would likely be the left ones out in the cold, when their equivalent of the digital camera takes hold.

InvesterJones

Middle_of_the_Road said:

InvesterJones said:

Middle_of_the_Road said:

masonic said:

Perhaps they are overvalued.

No doubt some are. Would like to know how these two companies are valued 

Tesla ~ $1 tn
Ford ~ $40 bn

It's certainly hard to ascertain the opinion of the entire investing world that results in that consensus, but it was probably (fear of) the Kodak effect.

Probably.
I doubt Ford would ever be the next Kodak though.
Most of the big automotive names will be doing R&D into alternative powertrains.
Tesla would likely be the left ones out in the cold, when their equivalent of the digital camera takes hold.

Sure, but R&D into (and launch of) digital cameras didn't save Kodak, the argument goes.

GeoffTF

Hoenir said:

As all the companies do is repurchase their own shares. Creating a self fulfilling upward loop in the share price. 

Repurchasing their own shares leaves the share price the same. It does not increase it. Paying a dividend would decrease it by the value of the dividend. Aside from the number of shares in issue, a share buy back is equivalent to reinvesting a dividend rather than paying it out.

GeoffTF

Middle_of_the_Road said:

masonic said:

Perhaps they are overvalued.

No doubt some are. Would like to know how these two companies are valued 

Tesla ~ $1 tn
Ford ~ $40 bn

The market believes that the net present value of Tesla's earnings will be much more than Ford's. If you believe that the market is wrong, you can buy Ford and short sell Tesla. You may, however, find that the market can remain irrational for longer than you can stay solvent (as Keynes famously said).

GeoffTF

IanManc said:

[Deleted User] said:
........ but yeah it's pretty dead on the island nowadays ........

The UK is the 6th largest economy in the world, and the 9th biggest manufacturer in the world.

However, it has a sizeable portion of its population which glibly talks the UK down contrary to the evidence.

The UK was 21st for median equivalised household disposable income in 2021:

https://en.wikipedia.org/wiki/Disposable_household_and_per_capita_income

The UK median equivalised household disposable income will be much less if we exclude London. We have nothing to be complacent about.