As Tesla has become the world’s largest motor manufacturer in terms of market capitalisation, IGTV’s Jeremy Naylor speaks to John Meyer from SP Angel to discuss the electric vehicle sector and whether there’s a bubble forming.
The two discuss Tesla, which has now eclipsed all of the other major manufacturers. As Jeremy points out, the company barely turns a profit, with a P/E ratio of 1287, which means it would take 1287 years for investors to earn back their investment at current prices. In comparison, the sector average is a P/E ratio of 14.6. According to Jeremy, the share price would have to fall substantially, or the company would have to increase earnings by an unrealistic sum to return the P/E ratio to the sector average.
We provide fast and flexible access to over 16,000 financial markets – including indices, shares, forex and commodities – through our award-winning range of platforms and apps.
Established in 1974 as the world’s first financial spread betting firm, we’re now the world’s No.1 provider of CFDs and spread betting* and a global leader in forex. We also offer an execution-only share dealing service in the UK, Ireland, Germany, Austria and the Netherlands. Our range of affordable, fully managed investment portfolios rounds out our comprehensive offering to investors and active traders.
Through our low fees and smart price-sourcing technology, we help traders keep their costs down.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading spread bets and CFDs with this provider†. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Professional clients can lose more than they deposit.
* Based on revenue excluding FX (published financial statements, February 2018).
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As Tesla has become the world’s largest motor manufacturer in terms of market capitalisation, IGTV’s Jeremy Naylor speaks to John Meyer from SP Angel to discuss the electric vehicle sector and whether there’s a bubble forming.
The two discuss Tesla, which has now eclipsed all of the other major manufacturers. As Jeremy points out, the company barely turns a profit, with a P/E ratio of 1287, which means it would take 1287 years for investors to earn back their investment at current prices. In comparison, the sector average is a P/E ratio of 14.6. According to Jeremy, the share price would have to fall substantially, or the company would have to increase earnings by an unrealistic sum to return the P/E ratio to the sector average.
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We provide fast and flexible access to over 16,000 financial markets – including indices, shares, forex and commodities – through our award-winning range of platforms and apps.
Established in 1974 as the world’s first financial spread betting firm, we’re now the world’s No.1 provider of CFDs and spread betting* and a global leader in forex. We also offer an execution-only share dealing service in the UK, Ireland, Germany, Austria and the Netherlands. Our range of affordable, fully managed investment portfolios rounds out our comprehensive offering to investors and active traders.
Through our low fees and smart price-sourcing technology, we help traders keep their costs down.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading spread bets and CFDs with this provider†. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Professional clients can lose more than they deposit.
* Based on revenue excluding FX (published financial statements, February 2018).
† For the 12 months preceding 1 April 2020.
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