Can someone smarter than me explain how this is happening? If it has this market cap, someone is buying at that valuation. Why? Greater fool theory?
Oy, this market is going all topsie-turnie right now. Ford's singular, biggest asset is its stake in Rivian for crying out loud.
And with a Market cap of only 80 Billion or so, Ford is smaller than Rivian at these valuations.
EDIT: Year-to-date YTD at least. I thought F was up more than Tesla in 52-week but I was mistaken. Still though, you can see that the F ticker has skyrocketed with this strategy, despite the obvious headwinds of "Ford doesn't have enough chips to even make their allotted cars this year".
Like, I get it. Its a strategy for Ford / Amazon to be "hip" and "cool" by supporting Rivian and participating in this hype. Its stupid but it seems like its working, for F's stock to go up so much despite all of the manufacturing issues they had (idle factories / layoffs), is just how stupid this market is right now.
There's so much stupid in the market these days that its hard to keep up.
I like their SUV https://rivian.com/r1s but it's $75k.
At least Tesla has other side businesses going for it, but I even question TSLA long term valuation. I guess investors are thinking they will gradually transition into IP and software technology company, like Android.
And let car mfrs fight over the hardware space.
$75k is $20k cheaper than the Model X, doesn't have the silly doors, and has a 3rd row option that adults can sit in. R1S will sell like hotcakes to eco-minded soccer moms. And, there is no competition in sight from any other manufacturer (electric hummer doesn't have the 3rd row option)
These guys have very deep pockets, big contracts with Amazon etc. that can keep them pushing out cars for years and they don't have a history to encumber them. They can copy everything Tesla does and the market is big enough to support them. I think the valuation is wishful thinking and a lot still remains to be seen but who knows...